'We're not anti-transformation' say law firms challenging new(-ish) BEE code for legal sector

The Money Show's Stephen Grootes interviews Gareth Driver, senior partner at Webber Wentzel.

Three more major law firms have joined Norton Rose Fulbright in its fight against a new BEE code in the legal sector.

The Broad-Based Black Economic Empowerment Legal Sector Code of Good Practice (LSC) was gazetted in September last year and came into effect immediately.

In a joint statement, Bowmans, Webber Wentzel, and Werksmans say the LSC does not meet the need to be workable and sustainable, 'based on sound empirical evidence'.

They believe that the new code introduces implementation and structural challenges that in fact risk undermining transformation efforts and the long-term sustainability of the legal sector.

On The Money  Show, Gareth Driver, senior partner at Webber Wentzel emphasizes that they are not anti-transformation.

"We want to make it clear that we're not opposed to having a code altogether. We support a code, one on the right terms that are rational and take into account the circumstances in our sector."

Gareth Driver, Senior Partner - Webber Wentzel

The law firms' statement says the timeline for the achievement of the LSC’s black ownership targets is problematic, with the doubling of black ownership targets to 50% by year five. 

This fails to recognise that in the legal sector, only practicing lawyers in a firm can be owners (equity partnership), they say.

Driver points out that the law firms concerned currently apply the generic codes that apply to all businesses in South Africa, and have in fact in some cases exceeded those ownership targets which are set at 25%.

"However, around the LSC this is a question of what the measurements are and how that is applied and what the implications are for our business."

Gareth Driver, Senior Partner - Webber Wentzel

For more detail, listen to the interview audio at the top of the article and click here to read the law firms' statement