The Black Business Council (BBC) has come out guns blazing condemning regulatory bodies in business calling on them to stop what it terms harassment of black-owned businesses.
The call comes after a ruling made by the Financial Services Tribunal (FST) against the Financial Sector Conduct Authority (FSCA) in a matter that involved the Municipal Employees Pension Fund (MEPF).
The FST ruled in favour of the fund in the case in which the FSCA had stated that the MEPF board was not properly constituted, citing non-compliance with the rules governing the election of employee representatives.
The FST also annulled the FSCA’s decisions to delay the rule amendment and exemption applications, instructing the FSCA to reconsider its invalidation of the MEPF board’s actions.
BBC president Elias Monage said: “This landmark ruling exposes the FSCA’s unjust actions towards the MEPF and underscores a disturbing trend of regulatory overreach targeting black businesses. For far too long, black businesses in South Africa have been subjected to unnecessary scrutiny and obstruction in industries still dominated by white-owned and white-led institutions.
“The FSCA’s handling of the MEPF case is a prime example of how black businesses face discrimination under the guise of regulatory enforcement.
“The BBC views this as a deeply entrenched issue, where regulators use their authority not to promote fairness or protect stakeholders but to undermine and destabilise black-led institutions for daring to challenge the status quo.”
The BBC also stated that the FSCA’s persistent efforts to dissolve the MEPF’s board of trustees, with claims the board was improperly constituted under the Pension Funds Act, have now been exposed as legally baseless. The FST’s findings revealed that the FSCA had acted irrationally and exhibited an excessive fault-finding spirit in its attempts to disband the board.
“This overreach by the FSCA has now been condemned by the highest authority in the sector, further reinforcing the notion that black institutions are being unfairly targeted.
“The ruling stated that the FSCA had grossly overstepped its powers, and its actions were irrational, casting doubt on the credibility and impartiality of the regulator.
“The fact that the tribunal went so far as to overturn the FSCA’s decisions is not only a victory for the MEPF but a clear message to other black-led businesses that the fight for fair treatment is far from over.”
Monage also pointed out that the FSCA’s actions represent a wider systemic issue that disproportionately impacts black institutions attempting to operate in predominantly white-dominated spaces.
“It is essential black-owned institutions across all industries secure robust legal counsel when dealing with regulatory bodies to protect their rights and ensure they are treated fairly.
“The BBC believes this ruling is a testament to the strength and resilience of black businesses. This victory should inspire newer black-owned establishments to stand their ground, challenge unfair treatment, and hold regulators accountable,” he said.
