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Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Sector Codes

Defence Sector Code

9. Key Principles


9.1 The fundamental principle for measuring B-BBEE compliance is that substance takes precedence over legal form.


9.2 In interpreting the provisions of this Sector Code, any reasonable interpretation consistent with the objectives of the Act as amended must take precedence.


9.3 In the event of this Sector Code of Good Practice not providing specifically for a particular aspect relating to its applicability or any other related matter or in the event of a lack of clarity, such aspects or matters must be dealt with in accordance with the Codes as amended from time to time. In addition, the interpretation of the provisions of this Sector Code shall be made having regard to the Preamble, the Objectives, Key Principles and Commitments as the case may be.


9.4 The basis for measuring B-BBEE initiatives under this Sector Code is the B-BBEE compliance of the Measured Entity at the date of Measurement.


9.5 Any misrepresentation or attempt to misrepresent a Measured Entity’s true B-BBEE status will be dealt with in accordance with the provisions as set out in the Act as amended, and they may lead to the disqualification of the entire scorecard of the Entity concerned.


9.6 The optimization of local intellectual property, research and development, as well as manufacturing capacity must be encouraged.


9.7 All measures taken in terms of this Sector Code shall be implemented in a manner that promotes local manufacturing and the stimulation of indigenous technology and products and must be underpinned by a firm commitment to promote South Africa, its interests and its economy.