The revised B-BBEE Codes

[Dastan Kieton]

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
Ownership
Skills development
Employment equity
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.

[adrianh]

The government can take their BBBEEEBBBEEBBEEE and stick it right up Malemmer's cavity!

[Dastan Kieton]

The government can take their BBBEEEBBBEEBBEEE and stick it right up Malemmer's cavity!

I know its a contrivesal topic and many people do not support BEE , it is however the future conditions in which all businesses will have to operate in South Africa and it is not going away. Adapting and understanding BEE may be the only way your business will survive in the future.

But having said that, we all entitled to have our opinions about it, thanks for expressing yours adrianh, I find it useful to know how people feel about the Political landscapes which in turn effects the business environment.

[adrianh]

The government should rather spend its time on educating and sterilizing the masses. Even if they took everything away from the whites and gave it to the blacks the masses would be no better off. The only people that benefit are the black elite. The little guy, black or white sees no benefit at all.

[Dave A]

Why is the B-BBEE codes of good practice being revised?
Well it is an economic imperative.

And nothing to do with the great results produced by the current codes, of course.

I've got a question - how do the B-BBEE codes grow the economy?

[desA]

It is right & just to ignore illegal laws.

[Blurock]

BEE is the biggest Buls#!t to ever hit this country. It does nothing for the economy and it is in fact racism against minority groups. Even in government departments there is racism against coloureds and Indians because they are not black enough.

What the government should focus on is creating apprentices and skills. How many blacks are in manufacturing of any kind? Virtually none! The BEE firm may have a black face, but ask him a technical question and he will refer you to the non black guy who actually has the knowledge. When these guys retire there will be nobody to refer to and the business will close. Without skills transfer and training we are doomed to buy from the Chinese. Once they have the monopoly, they can dictate the terms...