Public Interest SA Responds to Legal Sector Transformation Debate

MEDIA STATEMENT 

Johannesburg, Tuesday, 14 January2025 - Public Interest SA acknowledges the significant concerns raised regarding the implementation of the new Legal Sector Code, which aims to increase black participation in South Africa's legal sector. While we recognise that the timing of its implementation may be inelegant and the immediate challenges impractical for some, we firmly believe the long-term objectives of the code are not only reasonable but essential for meaningful transformation. 

For decades, key objectives of Broad-Based Black Economic Empowerment (B-BBEE) sectoral codes have been systematically circumvented by certain sectors, notably the financial and legal sectors. These sectors have exploited loopholes within skewed rating systems to maintain high compliance scores while preserving the entrenched status quo. 

One such example is the abuse of enterprise supplier development mechanisms, where many large law firms have outsourced this critical transformation tool to white-owned entities under the guise of effecting black small business development. These entities act as gatekeepers, enabling superficial sectoral transformation while reaping significant personal benefits. This practice has failed to achieve real, sustainable change particularly the assimilation of black business into the the mainstream supply chains. . 

The legal profession, as a cornerstone of justice and equity in society, cannot afford to perpetuate such disparities. Arguments that the new Legal Sector Code deviates sharply from previous codes without a "rational or reasonable" basis reflect the slow pace of genuine transformation in the sector. It is this inertia that has necessitated bolder and more ambitious targets. 

Public Interest SA also recognises the role of some black legal professionals in enabling the status quo. Many have inadvertently contributed to top white-owned law firms’ monopolisation of briefs, thereby reinforcing existing ownership and management inequalities. It is incumbent upon all stakeholders in the legal sector to actively dismantle these systemic barriers. 

The new Legal Sector Code, with its ambitious targets for ownership, management, and voting rights, is a necessary step toward achieving true diversity and inclusion in the sector. The set targets, such as 50% black ownership and voting rights and 25% representation by black women, are reflective of South Africa’s demographic realities and the urgent need for equity. 

While Norton Rose Fulbright SA (NRFSA) and other firms have expressed concerns over the feasibility of meeting these targets within the proposed timeframes, Public Interest SA maintains that these challenges must be addressed collaboratively, not through litigation aimed at halting progress. Transformation is neither comfortable nor convenient, but it is indispensable for creating a fair and just society. 

We call on the legal sector, including NRFSA and other stakeholders, to engage constructively with government and civil society in implementing the Legal Sector Code. The path to equity is fraught with challenges, but as a profession tasked with upholding justice, the legal sector has a moral and ethical obligation to lead by example. 

Public Interest SA reaffirms its commitment to advancing the principles of equality and fairness. Transformation in the legal sector is not only a legal imperative but a reflection of our shared commitment to a better South Africa. 

ENDS

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For media inquiries, please contact: 

Bagaetsho Oteng

Media and Communications, Public Interest SA 

Email: bagaetsho@publicinterest.org.za | 084 566 5400