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Broad-Based BEE Verification Agency

BEE RATED Verification Agency Newsletter – February 2013

1. ‘BEE Trax’ – our new electronic system.

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It’s a new year, and we are in the process of installing new BEE Verification software, called BEE Trax, which greatly improves the management and efficiency of the accreditation process.   Besides handling all the BEE calculations across various sectors, the software also performs tasks such as generating reports and certificates, and even automatically initiates emails to our clients (application enquiries, certificate renewals, reminders, audit visits with meeting requests, etc.). 

We are excited about this new system, as it will result in improvements such as quicker turnaround time, elimination the possibility of any human error, etc. It will be fully operational from mid-March.

2. BEE RATED’s new Website

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We are also pleased to announce that we have just set up a website – please right click, then ‘Open Hyperlink’,  to visit:  www.beerated.org

Features include: online applications for rating, newsletters and updates, BEE RATED policies and procedures, contact details, etc.

As we progress, more features and information will be added, so please keep an eye out.

3. Client update Briefing Session – November 2012

Following the gazetting of the draft new BEE Codes of Good Practice on 05/10/12, we held a briefing session last November for our clients at the Durban Chamber of Commerce and Industry. We were pleased with the turnout – more than 60 people attended from a large number of our clients, big and small.

The feedback we received was positive, and we certainly will hold a similar session as and when the new Codes are finally gazetted.

If anyone who did not attend would like the slides of the presentation, please contact Tony or Kim.

4. BEE LEGISLATION:  Quo Vadis in 2013?

“Companies are likely to be faced with significant, if not spectacular, new challenges during the year as and when the new revised BEE Codes are gazetted. It seems they will be gazetted for public comment soon.”

This was the opening line of our newsletter written in March 2012, almost a year ago.  Well, we got that prediction wrong – the Codes have still yet to be gazetted. And, given the fact that some 550 public comments were received in response, it is likely to be quite some time before the Department of Trade and Industry has sifted through and digested this mass of commentary.

It will be very interesting to see how government now responds to this mass of public opinion, and the extent to which the draft Codes may be altered. Recently, a Dti spokesperson said they hoped to conclude the review process by end-March…. Watch this space.

5. From’ elitist’ BEE to broadening the base – “Enterprise & Supplier Development’

According to a recent press report:  “The government is moving away from what it calls elitist black economic empowerment (BEE), as it aims to align BEE with its development and transformation agenda. Trade and industry director-general Lionel October said on Tuesday that the government was moving into a new phase of BEE meant to create black entrepreneurs and industrialists.”  (Business Day, 30/01/13)

This comment is in line with the thrust of the proposed revisions to the BEE Codes, where the weighting of points is concentrated on the two elements Preferential Procurement and Socio-economic Development, which have been combined into a new proposed element, ‘Enterprise and Supplier Development’, whose total weighting is a huge 43 points.

The requirements to be met, as spelt out in the draft Codes, are similar to those in the existing Codes, and we suggest that organisations wanting to maintain, and improve, their BEE level, should give close consideration to this proposed scorecard element, and perhaps act ahead of the gazetting of the new Codes (given that the measured period will be that of the most recent annual financial statements.

It is our view that it makes sense to start forward planning and acting in this area if you have not already done so. To get you going, see some examples in 6. below. Further than this though, you may want to seek professional assistance, which as you know we cannot provide as we may not consult and verify with the same clients.

6. Enterprise Development Initiatives

Numerous organisations operate in the Enterprise Development space, offering solutions to companies who are unsure of how to take the necessary steps to meet the requirements of a qualifying enterprise development initiative.

There is a website which has listed various initiatives – see the ‘ED directory’ in  www.BEE123.co.za.

To give you an idea, two examples are:

i)   The Hope Factory recently noted the positive impact on the (micro) businesses on its programmes,

     from the grants it receives from donor companies:

  • 48 new businesses were created and registered in 2012;
  • 86% of all these businesses now have a clear business strategy;
  • 92% of businesses in the ‘incubator’ programme experienced significant growth in turnover, and 64% experienced a growth in profit;
  • 95% of businesses now have accurate financial record keeping systems and adhere to a budget.

ii)   Another example is SMART Opportunities. Unlike others, SMART not only accepts grants to do its work,  but also enters into loan agreements with companies. Since inception, the following has taken place:

  • R15 million has been raised towards enterprise development initiatives;
  • loan agreements with over 50 customers;
  • grants received from more than 20 customers.

4.    Agricultural Sector BEE Codes

The AgriBEE Sector Code was approved by the Minister of Trade and Industry on 11 December 2012 and came into effect as of 28 December 2012 (Gazette No. 36035).

We are in the process of applying to SANAS for accreditation, so that we are able to continue providing a service to those of our clients who fall within this sector’s scope.

Questions and Comments are welcomed – please send to BEE RATED:  

Tony Kruger at tony@beerated.org;  Kim Odell at kim@beerated.org

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Contact us:

Physical Address:
Suite 2,
2 Fairways Avenue,
Fairways Park,
Mt Edgecombe
Tel: 031 539 3033
Fax: 086 750 2119
Members: A. Kruger; K. Odell

Accreditation: Please click on the logo below

Please click on the logos to directly access the SANAS and ABVA websites

Amended Bee Codes of Good Practice

Amended Bee Codes of Good Practice

B-BBEE Certificate

B-BBEE Certificate

Members:

association-of-bee-verification-agencies-logo

ABVA Membership Certificate

ABVA Membership Certificate