The development of the construction industry's empowerment charter is close to completion, said James Ngobeni, co-chairman of a committee overseeing the design of the charter, on Monday.

The charter, aimed at fast-tracking transformation and black economic empowerment in the construction industry, has been delayed because stakeholders have taken longer than expected to agree on empowerment targets.

When Public Works Minister Stella Sigcau announced the start of the development of the charter in October 2004, she gave the industry until July last year to finalise it. The industry missed the deadline and, speaking at a construction conference in October last year, Sigcau said she was anxious about the delays.

Ngobeni said on Monday: "We have almost reached the final stage. The document was taken to the minister for final approval late last year."

He said Sigcau responded earlier this month "in principle", approving the document.

"She wanted us to clarify certain provisions, such as interim targets for implementation."

Ngobeni said most of the targets were over a seven-year period and the interim targets would allow for a situation where targets were over four years.

"These targets will then be reviewed for the remainder of the period. This will help in measuring progress."

He said the committee would meet today to consider Sigcau's comments.

Another outstanding matter was the approval by the trade and industry department of the establishment of a council to oversee the charter's implementation.

"We have had discussions with the department about the matter and do not foresee any problems," he said.

The lack of a charter has not stopped companies with construction interests from concluding black economic empowerment transactions.

Group Five announced last year the transfer of 26,1% of its ownership into black hands in the form of an empowerment venture which includes iLimaMvela, a consortium made up of Mvelaphanda Group and iLima. Other members of the venture are a staff trust and black managers.

In another empowerment deal, a consortium comprising businessmen Bule-lani Ngcuka and Mzi Khumalo bought a majority stake in Basil Read recently.

Business Day