BEE

How to minimize Skills Development Expenditure

The Amended Construction Sector Code was published on 1 December 2017. This code has implications for entities that previously, under the Codes of Good Practice, didn’t need to make any contributions to obtain a specific level. This specifically refers to Qualifying Small Enterprises (QSEs) that qualify for automatic level 1 or 2 sworn affidavits in terms of the Codes of Good Practice. In terms of the Codes of Good Practice, if an entity with a turnover between R10 million and R50 million have...

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Back to basics with Broad-Based Black Economic Empowerment

South Africa was engaged in a racially segregated system called Apartheid from 1948 until 1994, where one’s race determined social, economic and political advantages and/ or disadvantages. In 1994, the first democratic government was elected in South Africa. This government implemented Broad-Based Black Econoic Empowerment (B-BBEE) in 2003/2004 as a racially selective program initiated to empower those previously disadvantaged groups. The B-BBEE Codes of Good Practice perpetuate in 2007 as an...

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Supplier Development and the Amended Construction Codes

The Amended Construction Sector Codes have brought about significant changes to the Supplier Development element. Generic Enterprises now have to ensure that their assistance meets the requirements of a compliant Supplier Development programme. A Generic Enterprise is regarded as the following: Contractors - revenue above R50 million; Built Environmental Professional (BEPs) - revenue above R25 million. The requirements for a Supplier Development programme are : The measured entity may not hold...

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The importance of Supply Chain Management for B-BBEE

All entities participating in the Broad-Based Black Economic Empowerment (B-BBEE) verification process are aware of how important preferential procurement is to the entity’s scorecard, and the level they will obtain. Keeping this in mind, entities should always ensure that they have a proper supply chain as well as supply chain management system in place. All employees working with suppliers and purchasing must always ensure that the suppliers they are procuring from have valid B-BBEE...

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Highlights from the BEE Commission’s Annual Conference 2018

Improving State Procurement for real empowerment - this was the theme of the Broad-Based Black Economic Empowerment (B-BBEE) Commission’s annual conference, held on 15 March 2018. In terms of Section 13G of the B-BBEE Act, all State entities and Government departments are required to submit their B-BBEE report (verification) to the B-BBEE Commission on an annual basis. All State entities and Government departments are required to implement B-BBEE. These entities does not have an option whether...

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The employers guide to: Changes to the Skills Element of the Amended BEE Sector Codes

The Amended Agri-BEE Sector Code of Good Practice (“Agri-BEE Code”) was gazetted on 8 December 2017 with immediate effect. The elements that differ most from the Amended Codes of Good Practice are found in the Ownership, Skills and Supplier & Enterprise Development Elements. Exempted Micro Enterprises (EMEs) with a turnover less than R10 million, and Qualifying Small Enterprises (QSEs) with a turnover of between R10 and R50 million, which are at least 51% black-owned automatically qualify...

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Proposed Amendments to the Codes of Good Practice

The Department of Trade and Industry have published the following 2 draft statements on 29 March 2018: Amend the following Draft Statement 000, Code Series 000 of 2018 (Gazette No.41546) Amend the following Draft Statement 300, Code Series 300 of 2018 (Gazette No. 41546) Both these draft statements are open for 60 days from the date of publication for public commentary. Generic Entities are encouraged to work through these proposed amendments and provide the DTI with their commentary. You are...

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Skills Development and BEE – a perfect combo

With Skills Development as a priority element on the Broad-Based Black Economic Empowerment (B-BBEE) Scorecard, you now have the opportunity to earn 30 vital points. This means you must emphasise the Skills Development element and at least meet the 40% sub-minimum required as a Priority Element. Should you fail in doing so, you’ll be discounted 1 level which may lead to non-compliance. SETAs and BEE All entities with a payroll exceeding R500 000 per annum are required to register with...

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Will the Amended Construction Sector Codes affect your business? Ask these 3 questions to know.

The publication of the Amended Construction Sector Charter in December 2017 changed the status quo for the construction industry. How do you know whether you will be subject to the provisions of the Amended Construction Sector Code? Ask yourself these 3 questions: Do you operate in the Construction Sector? The Construction Sector includes all enterprises that derive more than 50% of their annual revenue from construction-related activities. Do you perform any construction-related activities...

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A closer look at the Amended Agriculture Sector Code

The amended Agriculture (Agri) Sector Code was gazetted on 8 December 2017 and came into effect immediately. This Sector Code applies to any entity falling within the following scope of application: Primary production of agricultural products. Provision of inputs and services to Enterprises engaged in the production of agricultural products. Beneficiation of agricultural products, whether of a primary or semi beneficiated form (beneficiation is where value is added to a product). Storage,...

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