Companies will no longer be able to put up a facade for there BEE levels, the revised codes for B-BBEE (Broad based black economic empowerment) is stricter and requires meaning full black economic empowerment by companies. And if these new requirements are not met there will be consequences for your companies BEE rating.
On 2 October 2012 Trade and Industry Minister, Rob Dawies announced that the Revised code. The Cabinet has approved revised B-BBEE codes and is available for 60 days of public comment.
What has been revised ?
The scorecard has been reduced to five elements,
Enterprise and supplier development
Corporate social investment
Ownership, skills development and supplier development were introduced as priority elements.
All companies, except Exempted Micro Enterprises, will be required to comply with the five elements of the B-BBEE scorecard
Points for Ownership have been broadened, Skills Development Elements have been aligned to the New Skills Development Strategy
Thresholds for Exempted Micro Enterprises (EMEs) and Qualifying Small Enterprises (QSEs) have been adjusted
Entities that are 100% black-owned will qualify as Level 1, entities that are more than 50% black-owned will qualify as Level 2
B-BBEE verification Agencies are to include the Independent Regulatory Body of Auditors
Why is the B-BBEE codes of good practice being revised?
Well it is an economic imperative. "That’s why we are saying BEE remains an economic imperative. We cannot expect to grow and develop as a country if the leadership of the economy is still in the hands of only a small minority of the society‚” says Dawies.
Do not feel disheartened if your small company does not not comply with all 5 elements, but remember you can still qualify for a BEE certificate which will only be beneficial to your company and you wont have to break the bank to get the certificate.