Revised BEE Codes
The revised BBBEE Codes of Good Practice were gazetted on 11 October 2013 after much research and public consultation and heralds a new phase of Broad-Based Black Economic Empowerment. A number of subsequent gazettes and clarification statements have been released since then, and we list the most up-to-date information below:
New Code Packages:
Companies can choose to be assessed on this new legislation either from 11 October 2013, or at the latest, on all financial periods ending after 01 May 2015. The table below gives an example of a company with a February financial year-end.
In this example, the company would only be assessed on the New Codes in 2017, however more importantly, they would need to implement the new legislation in their 2015/6 financial year to ensure they still receive a good score on their 2017 certification – proactive action is absolutely key!
All those companies falling within the gazetted Sector Codes of Construction, Tourism, Transport, Property, Financial Services, Forestry, Chartered Accountants, Agriculture and ICT are required to continue on the existing Sector Codes until they are updated to align with the New Codes. The DTI has indicated that should these updates not be concluded by 31 October 2015, they will most likely be repealed. Register (link to Home Page) for our newsletter or follow us on Social Media to receive the updates.
Change in Thresholds:
The annual turnover thresholds for the 3 different scorecard categories have been amended as follows:
BEE Recognition Levels:
The BEE recognition levels have changed dramatically, so its important to take note of the number of points needed for the BBBEE level you are targeting eg. previously 68 points was equivalent to Level 4 and now it falls to a Level 7.
The previous 7 elements have now been condensed to 5 elements, with the old Management Control and Employment Equity merged into a new Management Control element, and the old Preferential Procurement and Enterprise Development merged into a new Enterprise and Supplier Development element. To view the latest scorecards, click on the relevant one below :
A new concept of priority elements has been introduced, where a sub-minimum of 40% of the Ownership net value score, Skills Development and ESD are required. Should large companies not meet this sub-minimum in all three, their BEE level would drop 1 level whereas QSEs would drop a level only if Ownership and 1 of the other priority elements are not met.
It is imperative for a company to achieve Empowering Supplier status on their Amended Codes assessment or they will not feature in future client procurement. The Codes lists the definition and requirements for this status, so ensure your company complies.