BEE

Construction Industry: How To Correctly Implement A Supplier Development Program

Construction Industry: How To Correctly Implement A Supplier Development Program

On 1 December 2017, the Amended Construction Sector Code was published in terms of Government Gazette number 41287. This Sector Code makes provision for Supplier Development Programs on the Generic Construction Sector Code Scorecard. Generic Enterprises are Contractors with an annual turnover above 50 million Rand and BEP’s (Built Environmental Professionals) with an annual turnover above 25 million Rand. What is a Supplier Development Program? A Supplier Development Program is a program where...

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Episode 142: Implementing B-BBEE Initiatives In My Business – Will It Be Expensive?

Episode 142: Implementing B-BBEE Initiatives In My Business – Will It Be Expensive?

SEESA BEE legal advisors, Meagan Turley and Christiaan Naudé discuss the costs associated with BEE initiatives. They focus on the Amended Codes of Good Practice Generic Scorecard elements requiring monetary contributions. They also explain how the contribution amounts are calculated and when it is applicable. Click on the play button below to listen to our podcast! Contact your SEESA BEE Advisor to assist your business with any BEE-related queries you might have. Alternatively, leave your...

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Can You Obtain BEE Ownership Through The Sale Of Assets, And What Are The Requirements?

Can You Obtain BEE Ownership Through The Sale Of Assets, And What Are The Requirements?

The sale of assets is an alternative indirect option to obtaining BEE Ownership. This statement allows a company to sell their operational assets, a business, or equity instrument in another business, to black people (or to an entity that is at least 51% Black Owned) as an alternative to selling an equity stake in the company. The asset’s value is measured against the total value of the Seller and will determine the Ownership percentage score. For the first three years after the sale of...

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Construction Industry: How To Correctly Implement A Supplier Development Program

What Is B-BBEE?

BEE, or rather B-BBEE, is an acronym for Broad-Based Black Economic Empowerment. B-BBEE is a Government policy with its main objective to redress the economic inequalities that Apartheid caused prior to 1994. The aim is to include all race groups in our economy. During Apartheid, most race groups in South Africa were excluded from participating meaningfully in our economy. This caused a lot of inequalities and poverty. The intended beneficiaries of B-BBEE are Black South African citizens....

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DYK – The Targets For Skills Development Expenditure Under The Construction Sector For Generic Companies Will Increase?

DYK – The Targets For Skills Development Expenditure Under The Construction Sector For Generic Companies Will Increase?

The generic scorecard regarding the Amended Construction Sector Code was gazetted on 1st December 2017. After conception, the first indicator’s target for skills development expenditure on the first indicator was 2% of the Leviable Amount. After year three, the target was increased to 2,5%, after year five, the target will be 3%. The 3% target for Skills Development expenditure under the Construction Sector for generic companies will come into effect immediately from 1 December 2022. This...

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How Start-Up Enterprises Benefit From B-BBEE

How Start-Up Enterprises Benefit From B-BBEE

If you are a newly formed business and have just started out, you might wonder how B-BBEE compliance work, the requirements for B-BBEE and if you have to spend money to comply. A start-up company will be measured as an Exempted Micro Enterprise (EME) for the first year of trading or Incorporation for B-BBEE purposes. Start-up Enterprises are deemed to have the same qualifying B-BBEE status as an EME. They will be deemed to have a B-BBEE status of a level 4 contributor with a recognition level...

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Construction Industry: How To Correctly Implement A Supplier Development Program

The New 5th Year Target For Skills Development Under The Amended Construction Sector

The original construction sector codes were repealed in February 2016. Construction companies and Built Environment Professionals (BEPs) were then scored under the amended General Codes of Good Practice since that date. Shortly after, a new, Amended Construction Charter was introduced.  This new Amended Construction Charter was published with an effective date of 1 December 2017.  Under the Skills Development Element, a great amount of relief was given to companies on their targets...

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Can You Obtain BEE Ownership Through The Sale Of Assets, And What Are The Requirements?

How Do I Know If My Suppliers Have Valid BEE Certificates Or Affidavits Which I Can Use To Claim Procurement Points?

This question arises in many people’s minds because if your supplier has an invalid certificate or affidavit, you will not be able to claim any points in the procurement element for any spending made at that supplier. Each certificate or affidavit has various prerequisites that must be met before it is deemed a valid BEE certificate or affidavit. Firstly, one must distinguish between a certificate and an affidavit. Once you have identified that it is a certificate, you must ensure the...

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DYK – The Targets For Skills Development Expenditure Under The Construction Sector For Generic Companies Will Increase?

DYK – Informal Training Is Capped For Purposes Of BEE Calculations?

Informal training comprises both your unaccredited external training as well as your internal training. This type of training usually falls under Category F & G on the Skills Development Matrix. External informal programmes are structured and can take the form of short courses, workshops or seminars. Upon completion, the trainee receives a completion certificate or attendance register from the training provider. Internal training is generally done in the workplace and results in an...

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Episode 135: Unsure How To Approach The BEP Sub-sector Within The Construction Codes?

Episode 135: Unsure How To Approach The BEP Sub-sector Within The Construction Codes?

SEESA BEE Legal Advisors Saigal Inderpal and Seshni Chetty discuss the type of entities that are classified as BEP and the general requirements thereof.  They also discuss the differences between Contractors and BEPs. Click on the play button below to listen to our podcast! Should you require more information regarding this topic, contact your nearest SEESA office. Alternatively, please leave your contact details on SEESA’s website for an advisor to contact you....

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