The amended financial sector codes, socio-economic development and consumer education: The Amended Financial Sector Charter was gazetted on 01 December 2017. Socio-Economic Development consists of charitable donations as well as Consumer Education Contributions.  Charitable donations must be made to Organizations with at least 75% Black Beneficiaries and the target for a QSE as well as a Generic Entities is 0.6% of the annual Net Profit After Tax (NPAT).   Targets for Foreign branches of...

In the case of Peel & Others / Hamon J & C Engineering (Pty) Ltd & Others (2012/00994) the South Gauteng High Court dealt with this issue amongst others. For our purpose, we will only deal with the above issue. Summary of facts: In order to improve its BEE scorecard to obtain a government tender, Hamon & Cie (“the company”) entered into a Shareholders Agreement with two black female employees.In terms of the Shareholders Agreement 13% shares were sold to each of the two...

During April 2019 the B-BBEE Commission declared that a majority of transactions involving broad-based trusts deviates from the law and do not constitute genuine and effective black ownership.   These transactions involving trusts, BBOS and ESOPs did not meet the rules set in Statement 100 Annexes (B)-(D), and thus cannot be recognised for ownership points. The commission has informed those companies not complying to rectify their ownership structures and undergo a re-evaluation on...

The sub-element Preferential Procurement is important as points are awarded based on procuring from companies having good B-BBEE ratings. On most scorecards, it is noticeable that a large number of points are allocated to the sub-element Preferential Procurement. Therefore, the person/s appointed to collect suppliers B-BBEE certificates and/or sworn affidavits must ensure that the information received is correct. Below are some guidelines to assist your company when claiming points for the...

It is always important for a business to keep their B-BBEE up to date, not only by having a valid B-BBEE Certificate but also by doing the necessary financial planning and budgeting for the renewal of the B-BBEE certificate. Most entities have a February financial year-end which means that they are in the middle of the current financial year.  Keeping this in mind it is important to plan and ensure that the correct amounts spend on the following B-BBEE elements: Skills Development;Enterprise...

The department of Trade and Industry (DTI) published notice 306 of 2019 Amended Code Series 000, Statement 000 in terms of Section 9 (1) of the Broad-Based Black Economic Empowerment Act 2003, (Act No. 53 of 2003) as amended by Act 46 of 2013 for implementation within 6 months from date of Gazette and replace Amended Code Series 000, Statement 000 within Gazette 36928 with the following Amended Code Series 000, Statement 000. The basis for measuring B-BBEE initiatives under the Codes is the...

A step in the right direction to oust fraudulent/fake B-BBEE Certificates The advent of the B-BBEE Certificate portal comes as a breath of fresh air to the public, business owners and governmental organisations to weed out fake and fraudulent B-BBEE Certificates. The flagship B-BBEE Certificate portal that was introduced by the Department of Trade and Industry sadly closed their online platform on the 30 April 2013. Much to the delight of Registered Approved Auditors and Accredited...

Op die 31ste Mei 2019 is die volgende wysigings tot die Kodes vir Goeie Praktyk deur die Departement van Handel en Nywerheid gepubliseer in Gazette 42496: Skedule 1 van die Gewysigde Kodes van Goeie Praktyk;Gewysigde Kode Reeks 000, Verklaring 000;Gewysigde Kode Reeks 300, Verklaring 300;Gewysigde Kode Reeks 400, Verklaring 400; Die volgende is net sommige van die veranderinge wat ‘n effek op u Breë Basis Swart Ekonomiese Bemagtiging (BSEB) gradering. Eerstens is dit belangrik om daarop te let...

On the 31st of May 2019 the following amendments were gazetted by the Department of Trade and Industry (DTI) in Gazette 42496: Schedule 1 of the Amended Codes of Good Practice;Amended Code Series 000, Statement 000;Amended Code Series 300, Statement 300;Amended Code Series 400, Statement 400 The following is just some of the changes that will have an effect on your Broad Base Black Economic Empowerment (B-BBEE) Rating. Firstly, the definition of Absorption has been amended. The new definition...

With the new amendments to Statement 300 (which deals with Skills Development), it is important to make sure that both Learnerships, as well as Bursaries, are registered in your financial year. Please see below the new amended Skills Scorecard: Category Skills Development Element Weighting Target 2.1.1 Skills Development Expenditure on any programme specified in the Learning Programme Matrix for black people as a percentage of the Leviable Amount 2.1.1.1 Skills Development Expenditure on...