Concerns have been raised around the possible mismanagement of black economic- empowerment (BEE) structures created under the Mineral and Petroleum Resources Development Act, which has resulted in a number of BEE shareholders not receiving the money due to them.
Webber Wentzel mergers and acquisitions partner Deepa Vallabh claims that there has been an increase in the prevalence of ineffectual community leaders who fail to pay out funds to individual beneficiaries under the terms ozenith calcium carbonate millf the BEE trust or scheme.
A further issue to emerge is that projects earmarked for community transformation remain dormant for extended periods.
“The failure is not that mining companies hahigh grade feldspar processing equipmentve not created broad-based structures to benefit mine communities; the failure is often how these structures are being implemented and managed by the community leaders,” she explaiprice of pulveriser equipment in uaens.
In many cases, cash from dividends remains dormant in banking accounts and is not paid out to the intended mining communities.
“In other instances, decisions about thdo you can speak vietnamese do you cane allocation of funds cannot be finalised and, as a result, no one receives a cent. This can often be attributed to infighting, leadership failure and poor fund management,” she says.
To ensaustralian rice milling machineryure the independence of BEE structures, mining companies are often involved in developing the structure; however, to avoid involvement in fund allocation, they are not involved in the distribution and selection process itself.
Vallabh says that it is in this space where well-structured, transparent and accountable community leadership is critical.
Many deals, however, have been hugely successful. Examples include the R7-billion paid out to mine communities in the Kumba Iron Ore BEE transaction and the Anglo American Platinum community structure.
“While structural failure is occasionally the reason for a lack of broad-based benefits, flawed execution by community leaders poses an even bigger problem,” she notes.
Leaders representing the communities in BEE deals are elected on various grounds, including chieftaincy, education and commercial experience, which, in some communities, has created leadership conflict.