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Broad-Based BEE Verification Agency

BEE Rated Verification Agency Newsletter – October 2012

The Department of Trade and Industry (DTI) on 02/10/12 opened a 60-day period for comment on the revised Broad-based Black Economic Empowerment (B-BBEE) Codes of Good Practice.

Please take note below of some of the preliminary information that was released at the launch of these Draft Codes. They are to be released to the public shortly – once obtained, we will conduct an analysis and make this available to yourselves.

THRESHOLDS

The annual revenue thresholds to be measured as an Exempted Micro Enterprise (EME), or as a Qualifying Small Enterprise (QSE) have been adjusted:

–          EME’s increasing from R5-million to R10-million

–          QSE’s increasing from between R5-million and R35-million, to R10-milion and R50-million. The Minister explained that inflation was the rationale behind the increases.

SCORECARD ELEMENTS REDUCED FROM 7 TO 5

The current generic scorecard contains seven elements and these have been reduced to five, with a total of 105 points assigned to the five elements.

NB:  All companies, except the exempted micro enterprises (EME’s) are to comply with all the elements of the scorecard.

“PRIORITY ELEMENTS”

Introduction of minimum requirements (companies to score at least 45%) for 3 priority or core elements – these are

–          Ownership

–          Skills Development

–          Enterprise and Supplier Development.

NB:  Qualifying Small Enterprises (QSE’s) are required to comply with two of the elements, although ownership is compulsory, while large entities (Generics) will have to comply with all three of the requirements.

Note:

Of the three core elements, Enterprise and Supplier Development is viewed as most important as it alone counts for 45 of the 105 points in the scorecard.

Further Note: 

Entities that do not meet the minimum requirements in these elements will be discounted in B-BBEE levels. Failure among Generic’s to score in any one of these categories results in an automatic downgrade by two levels, and for QSE’s a downgrade of one level.

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

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

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Amended Bee Codes of Good Practice

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