The first question I ask when starting a consultation is ‘’Why do you need a BEE certificate?”
This is a very important question, one that no one can answer for you. You need to determine why it is important for your business to be BEE compliant. Once you know why you want to be BEE compliant, you will be able to help us help you.
By knowing why you need a BEE certificate, we can determine what level is best suited for you. It is not always necessary to aim for a level 1 or 2. Sometimes having a level 7 or 8 might just be enough for your needs.
If you are planning to do government work by submitting an application for a tender, then we would advise that you aim for a level 1 or 2. The higher your level when tendering the better it affects your score.
Businesses may sometimes be BEE compliant and not even realise it. There is a misconception that BEE means “black ownership”, when in fact there are so many other elements to consider.
BEE consists of 5 elements namely:
1. Ownership
Most of the entities falling under the Agri Sector codes are under the impression that they need to “give away” their farms to obtain points under Ownership. This couldn’t be further from the truth. Your BEE Legal Advisor will be able to assist you in structuring ownership that would meet your specific needs.
2. Management & control
Most farmers have farm supervisors and foremen working on their farms. This will contribute to the Management & Control Scorecard of the entity.
3. Skills/training
Training of black people is one of the areas that not only the Agri Sector clients need to focus on, but that all entities regardless of the type of business needs to focus on. With Skills Development we are looking at long-term empowerment.
4. Enterprise and Supplier Development
Enterprise and Supplier Development contributions will assist or accelerate the development, sustainability and ultimately financial independence of Supplier Development beneficiaries.
5. Socio-economic development
This initiative consists of contributions made to black non-profit organisations or a black community. This contribution can be in the following forms:
- Grant contributions
- Offering discounts
- Covering overheads or direct costs
- Providing professional services at no cost
- Providing professional services at a discount rate
Conclusion
It is therefore important that you take the time to consult with a professional in this field, even if it is for your own curiosity to determine if you are BEE compliant or not. This can also indicate what it is that you are doing right and what you might be doing wrong and how to correct it for future gain. BEE might sometimes seem like a daunting undertaking were in some cases you might be doing all the work without realising it, and not gaining the necessary benefits because of it.
Should you require further assistance please contact your nearest SEESA office, alternatively, SMS “SEESA” to 45776 and a Legal Advisor will contact you.
About the Author:
Lourens Odendaal obtained his LLB at the University of the Free State, where after he completed his articles and was admitted as an Attorney in the High Court of South Africa, Free State Province. He is currently a Legal Advisor at the SEESA George branch, specialising in Labour Law and all things BEE.
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