BEE Score for CC

[Dave A]

Yah, you see, I should have read your post more carefully. I missed the bit about submitting to the department. Sorry. That does sound like a good option, if it works.

It works.

[Sparks]

What about 3 entities partnering up to form 1 company which then will be registered as 60,20 & 20% partnerships of which only the 2x 20% partnerships are held by "previously advantaged". That should give a 110% rating. But now my question, these 3 entities are operating totally independantly of each other. They merely formed the company to gain the BEE status. All tenders made by the builder ar his alone, those by the plumber are his alone and likewise the electrical contractor. Each entity will be responsible to meet all his own legal requirements. Would this be acceptable?

[wynn]

They merely formed the company to gain the BEE status.

Is this not what a 'Joint Venture' is all about?

[Sparks]

Would this grant each of the three entities a 110% rating if they used the same name but still kept their operations independant of each other?

[wynn]

Company A is owned by 60%X no PDI, 20%Y with PDI and 20%Z with PDI so the total is 40% PDI with the comensurate BBBEE score?
If they use company A to do all the invoicing and quoting the BBBEE rating should apply, you would need to keep the book very clean though and XY&Z would have to put proportionate work through. it can't just be a front for A

I have always thought that the easiest way is to form a trust as best percentage necessary for BBBEE as a profit sharing partner (no enforcable input as to how you run your business and you decide what is profit) the beneficiaries are a charity and your PDI staff proportionate to length of service and salary, set up in such a way that if any staff leave your employ for whatever reason, they fall off the beneficiary list and will only recieve benefit for the period worked.

Three trustees are, you, a lawyer or accountant who are not beneficiaries and one beneficiary elected anually by the PDI staff.
you can change the charity as you and the trustees see fit, you keep the beneficiary trustee in the loop about business decisions and problems and how the business is being run also consider any input he may have if it makes sense.

This way no single individual benefits from your business and only those who work for you are included so you don't have any albatrosses.

[Pap_sak]

My wife has been told that she needs a BEE certificate if she is going to get any further work from one government department. She is a small sole sole prop with no employees and a turnover that will be luckly to hit R250K never mind R5 mill. And she's colored.

You would have thought a copy of her ID would be sufficient, but no, certification is required. You see, it's not just us whities that have to jump through hoops...

[BusFact]

I can sort of see their point. By insisting on a certificate they are covering themselves should a problem occur in the future. If they were to accept her ID, then they would be the one making the decision and that could end up being a carreer limiting move if it turns out to be wrong. Much safer for them to pass on the responsability.

It is a grudge expense though and should be unnecessary from you side. That bit I see too. Not exactly ideal for business cost efficiency.

[Pap_sak]

Well, my wife did phone around and it looks like it will cost her R1400 per year - which isn't too bad and could easily be offset with a slight increase in the hourly rate. But here is the problem: up to now she has competed on work and price and done ok, she doesn't want jobs on her PDI status. If anything, i am thinking of using her PDI status for my company!

[Dave A]

she doesn't want jobs on her PDI status.

Please pass on my compliments to her, but frankly I suggest she doesn't look a gift horse in the mouth while it's there to be had. The sooner we get to those equity targets, the sooner we stand a chance of getting rid of this racist legislation.

[gac]

Just to claify, which Dept are you referring to Anthony?