Dear Valued Clients,
We wish to bring to your attention a significant update from the Property Practitioners Regulatory Authority (PPRA) regarding BEE certificates, communicated by Dr. Steven Ngubeni, Chairman of the PPRA, to our Chief Executive, Jan le Roux.
In a recent letter, Dr. Ngubeni stated:
“After careful consideration and consultation with our legal advisors, we have resolved that the term ‘valid’ in the context of BEE certificates does not imply ‘compliant’.”
This new directive means that while industry participants will be required to submit valid BEE certificates obtained from accredited agencies, there will be no minimum BEE score or compliance requirement.
This announcement comes as a relief to many in our sector, particularly after the previous notice from the PPRA that sparked uncertainty around enforcing compliant BEE certificates for the upcoming round of FFC renewals. The initial decision left many real estate business owners scrambling to meet compliance requirements, causing widespread concern throughout the industry.
Jan le Roux expressed his gratitude for the PPRA’s reconsideration, stating:
“We are pleased that the PPRA has seen fit to review its decision, which would have had catastrophic consequences for the industry, ironically undermining the very transformation the PPRA seeks to encourage.”
Le Roux also highlighted the success of collaborative efforts in achieving this outcome, saying:
“We are also pleased to note that months of negotiations have borne fruit. Coming together around the table proved to be a much faster, cheaper, and less acrimonious solution than heading straight to court.”
While this change alleviates immediate pressures, le Roux emphasizes Rebosa’s unwavering commitment to the goal of transformation within the industry:
“As an industry, we absolutely need to support active transformation. Our hope is that the PPRA will take a serious look at the NPPC’s transformation proposal, which would use the Property Sector Transformation Fund to facilitate true transformation.”
Disclaimer:
The information supplied herein should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact our office for specific and detailed advice. Any legal information presented is a precis of current legislation, is subject to change and should not be used as a substitute for detailed professional advice.
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