Business group Sakeliga says it is preparing to launch a legal challenge against the Property Practitioners Regulatory Authority (PPRA) over the latter’s BEE enforcement policies that could see businesses forced to shut down.<\/p>\n\n\n\n
The issue relates to a new policy that came into effect in April 2024<\/strong><\/a>, where Fidelity Fund Certificates (FFCs)\u2014required for property practitioners to operate\u2014would be denied if applicants did not meet BEE requirements.<\/p>\n\n\n\n The need for a BEE certificate has been part of the Property Practitioners Act since it was enacted in 2022; however, until April 2024, FFCs were issued based on the requirement of having a BEE certificate, not necessarily being BEE compliant.<\/p>\n\n\n\n In April, the PPSA reminded practitioners that BEE compliance was required and that FFCs would not be issued unless they met the “accepted level of compliance” of 40 points or more (BEE Level 8). <\/p>\n\n\n\n “You will not be issued a BEE certificate if you score below 40 (making your BEE certificate non-compliant),\u201d it said at the time.<\/p>\n\n\n\n The PPRA described the policy as “non-negotiable”.<\/p>\n\n\n\n “It is imperative to underscore that compliance with regulations such as those set forth by the PPSA is non-negotiable,” it said.<\/p>\n\n\n\n \u201cPPRA plays a vital role in ensuring compliance, and it is incumbent upon all industry stakeholders, including REBOSA, to proactively work towards meeting these requirements,\u201d said Ramaili.<\/p>\n\n\n\n Property practitioners who fail to renew their FFCs by the specified deadline of 31 October of the relevant year while still actively practising face penalties. <\/p>\n\n\n\n The apparent shift in policy was met with immediate backlash by the sector, with property groups raising concern over the impact on small businesses, sole proprietorships, and “one-man” or “mom-and-pop” operations.<\/p>\n\n\n\n While industry bodies like the Real Estate Business Owners of South Africa (Rebosa) have opted to consult with the PPRA over the policy, others, like Sakeliga, are pursuing the legal route.<\/p>\n\n\n\n