Summary of the revised BBBEE changes released for public comment

Posted by Transcend
Wednesday, 3 October 2012  |  Comments

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Minister Rob Davies and The dti, on the 2nd of October 2012 announced the release of the revised Broad Based BEE Codes of Good Practice for 60 day public comment.

Some of the main provisions of these proposed BEE changes and their implications are as follows:

Provision:

Only 5 elements on the scorecard:

These include Ownership, Management Control (now included in Employment Equity), Skills development, Enterprise and Supplier Development (ESD), and Socio-economic development

Implication:
Introduction of Priority Elements - Ownership, Skills Development and Enterprise and Supplier Development

Provision:
Black ownership must be undertaken if you want a good score card
Implication:
Large entities would need to comply with all priority elements or drop two levels on the new BBBEE scorecard
 

Provision:
A new category of Supplier Development opened up under Enterprise Supplier Development (ESD)
Implication:
We need to be interacting with and developing our EME (Exempt Micro Enterprises), and QSE (Qualifying Small Enterprises) Black Owned suppliers.

Provision:
Only value adding suppliers qualify under preferential procurement
Implication:
You need to ensure you are value adding on the procurement pillar of your BBBEE scorecard

Provision:
Skills Development expanded to unemployed people
Implication:
You need to be investing in and developing future employees

Provision:
Five bonus points for learner absorption
Implication:
Learnerships need to be strategically handled as potential future employees

Provision:
The recognition for early payments is limited to the amount of the cost to acquire short term funding, and limited to a maximum of 15% of the 15 points under enterprise and supplier development
Implication:
Enterprise Development needs to be carefully and meaningfully treated within the value chain

Provision:

New Turnover Targets for EME and QSE enterprises

EME – raised from R5 million to R10 million
QSE – raised from between R5 – R35 million to R10 – R50 million

All enterprises, except EME must comply with all 5 pillars of the revised BBBEE Scorecard.
 

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