Sasol Form 20-F for the year ended 30 June 2021 - Book - Page 49
Charters (i.e. the Mining Charter) and Liquid Fuels
Charter (LFC) adopted by the various sectors within
which Sasol operates businesses and the related
scorecards.
regarding future costs, the potential loss in excess of the
amount accrued cannot be reasonably determined.
Regulation
Our most recent certification issued in
December 2020, for both Sasol Limited and SSA, puts
them at a contributor status of level 4, which meets the
minimum set target and compares to level 3 for SSA in
2020. Plans are in place for improvement in some
lagging areas.
The South African government has, over the
past 26 years, introduced a legislative and policy
regime with the imperative of redressing historical
social and economic inequalities, as stated in the
Constitution of the Republic of South Africa Act, 108
of 1996 (Constitution), by way of the empowerment of
historically disadvantaged South Africans (HDSAs) in
the areas of ownership, management and control,
employment equity, skills development, procurement,
enterprise development and socio-economic
development.
Sasol continues to entrench transformation
within the organisational culture, enhancing its
commitment as a corporate citizen.
Sasol Khanyisa transaction
Most of our operations are based in South
Africa, but we also operate in numerous other countries
throughout the world. In South Africa, we operate coal
mines and a number of production plants and facilities
for the storage, processing and transportation of raw
materials, products and wastes related to coal, oil,
chemicals and gas. These facilities and the respective
operations are subject to various laws and regulations
that may become more stringent and may, in some
cases, affect our business, operating results, cash flows
and financial condition.
Sasol implemented a new B-BBEE ownership
transaction (Sasol Khanyisa) in phases from
March 2018, structured to comply with the revised
B-BBEE legislation in South Africa when the Sasol
Inzalo transaction came to an end in 2018. By
implementing the Sasol Khanyisa transaction, the
company sought to ensure ongoing and sustainable
B-BBEE ownership credentials.
The participants of the original Sasol Inzalo
transaction and qualifying black employees (including
those who participated in Sasol Inzalo) were invited to
participate in Sasol Khanyisa.
Our business activities in South Africa relating
to coal mining, petroleum production, distribution and
marketing of fuel products, electricity and gas are
subject to regulation by various government
departments and independent regulators. Refer to
“Item 3.D—Risk factors” for details on particular
aspects of regulations affecting our business activities.
Sasol Khanyisa has certain elements structured
at a subsidiary level, namely SSA (which was a whollyowned subsidiary of Sasol before the effective date of
Sasol Khanyisa), which houses the majority of the
South African operations of Sasol. If the transaction
conditions are fulfilled, ownership by participants in
SSA at the end of the transaction will be exchanged for
Sasol Black Economic Empowerment (BEE) ordinary
shares in Sasol Limited based on the relative value of
the SSA and Sasol BEE ordinary shares at the time of
the exchange.
Empowerment of historically disadvantaged South
Africans
Black Economic Empowerment policies and legislation
B-BBEE Act
The accounting recognition and measurement
principles applied to the Sasol Khanyisa transaction are
the same as those applied to the Sasol Inzalo
transaction, as the substance of both transactions was
the same. Based on the underlying assumptions made
by Sasol, the total IFRS 2 charge associated with Sasol
Khanyisa is R6,5 billion over the life of the transaction,
of which R885 million was recognised in 2021 (2020—
R1 068 million).
Sasol is well aligned with the economic
transformation and sustainable development objectives
embodied in the South African legislative and
regulatory framework governing B-BBEE. The key
elements of this framework are the B-BBEE Act and
the Codes of Good Practice (the new Codes were
gazetted on 11 October 2013 and promulgated on
1 May 2015 and further amended during May 2019) for
B-BBEE issued by the Minister of Trade and Industry
in terms of the B-BBEE Act (Codes), as well as the
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