Amended BBBEE Verification Manual

Amended BBBEE Verification Manual

Finally, some 13 months after the release of the amended BEE codes, the much anticipated amended BBBEE Verification Manual has been released by the DTi.

The 93 page document provides verification agencies with the methodology and evidence requirements in conducting a BEE verification on the amended B-BBEE codes of good practice.

B-BBEE Comprehensive Guidelines

Amended BBBEE Verification ManualThe Verification Manual provides comprehensive guidelines on the authentication and substantiation of B-BBEE reporting.

It expands on the minimum norms and standards on the ethical conduct and procedures to be employed in ensuring the verification of the B-BBEE Codes of Good Practice.

We are available to discuss this and any other related B-BBBEE queries, contact us for more information.

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Overdue Sector Charter Submissions

East Coast BEE Sector Charters

To date there are a number of Overdue Sector Charter Submissions.

The sector charters had until the 31st of October 2015 to release their amended bee codes of good practice. However, as of the 31st of October only the following sectors have been published for public comment:

• Tourism Sector Charter – 30 August 2015
• Forestry Sector Charter – 27 October 2015
• Property Sector Charter – 30 October 2015
• Draft Marketing, advertising and communication Sector Charter – 4 September 2015

East Coast BEE Sector ChartersThe following sector charters have been proposed and submitted to the DTI but have yet to be published:

• CA Sector Charter
• ICT Sector Charter

Definition of Sector Charters

Sector Charters are the same as Transformation Charters, and are developed by major stakeholders in the relevant industries. They are referred to as Sector Charters for as long as they are gazetted under Section 12 of the Act.

Contact us at East Coast BEE to set up an appointment to discuss how these and other issues can impact your business.

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Empowering Supplier Status Under Old Codes

Empowering Supplier Status East Coast BEE

There has been much confusion regarding the status of “old code BEE certificates” (empowering supplier status under old codes) being recognized when measured entities conduct their audits on the new codes.

In particular what would be the effect on procurement calculation when old code certificates would be included on a new code verification.

Certificates Issued under Old Codes

Empowering Supplier Status East Coast BEEAs per the notification from Mr Rob Davies (Minister of the DTI) all valid BEE certificates issued under the old codes will be deemed to be automatic empowering suppliers.

They will remain valid and should therefore be accepted and treated as conferring empowering supplier status.

The amended code series 400 Gazette No 36928 will be applied, which states that “Exempted Micro Enterprises and Start-Ups are automatically recognised as Empowering Suppliers.

To discuss this matter or any other questions you might have regarding the latest amendments, contact us and we will be happy to assist you.

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New Sector Charter Codes

 

Sector Charter Codes

The DTI is about to issue new sector charter codes. They are going to repeal all sector codes that have not been finalised and issued by the 31st of October 2015.

The DTI have committed to releasing the framework or guideline for IRBA and SANAS verification agencies which will provide clarity to them in terms of the methodology of conducting a BEE onsite audit as well as the evidence required to validate the measured entity claim.

Old Codes vs New Codes

The DTI have given South African companies a reprieve by extending the deadline for the application of the new sector charter codes as follows:

  • All companies that are to be measured on a financial period prior to 30th of April 2015 may elect to be measured using the old codes.  Essentially this means that Measured Entities are able to maintain their current BEE level of compliance (based on the old codes) until October 2017
  • An exempt micro enterprise (companies with less than a R5 million turnover) can also still obtain an exempt micro enterprise certificate from IRBA/SANAS accredited agencies based on the old BEE codes using their annual financial statements up until the 30th of April 2015.

Are you ready for the changes? If not, or you are unsure about the process, we can assist you by doing an evaluation to establish what your best course of action is. [button link=”http://www.eastcoastbee.co.za/contact/” size=”small”]Contact Us[/button]

 

B-BBEE Implementation Tips

Eastcoast BEE Speciallists KZN South Africa

Trying to navigate your business through the B-BBEE process can be a daunting task. With this in mind, East Coast BEE have come up with the following tips.

B-BBEE Implementation Tips

Make sure that your B-BBEE Consultant has the experience to get your company to the desired B-BBEE Level.

Eastcoast BEE Speciallists KZN South Africa BBBEE implementation TipsRemember that what you specialize in is your main focus, and its often best to leave your B-BBEE in the hands of a professional company.

The Five Pillars

Create a B-BBEE File and divide it into the 5 pillars:

  • Ownership
  • Management Control
  • Skills Development
  • Preferential Procurement
  • Socio-Economic Development

Remember to keep an active file of all evidence pertaining to B-BBEE so that it is available at the B-BBEE Audit.

Monthly Checks

Do monthly checks on evidence collected, B-BBEE payments made and that your Company Statuary Documentation is in order.

Be in contact with your B-BBEE Consultant on a regular basis so that the correct implementation can be followed.

By following these B-BBEE implementation tips, and with the right B-BBEE consultant on your side, the process can be a lot less daunting.

If you would like to find out more, Contact Us at East Coast BEE for a consultation on how best to proceed.

Social Responsibility through Socio Economic Spend

eastcoast bee kzn

Social Responsibility through Socio Economic Spend gives acknowledgement to companies whose initiatives help beneficiaries gain sustainable access to the economy.

This allows many companies that support these development initiatives already to score points on their BEE Scorecard.

Socio Economic spend is one percent of net profit after tax.  The Company needs to make sure that they achieve this spend by keeping the deposit slips/petty cash receipts.

A letter of thanks stating that the beneficiaries are 75% black needs to be presented to the verification company at the audit.

At East Coast BEE we can take you through the steps needed to reach this level, Contact Us for a one on one meeting to discuss how.

Social Responsibility through Socio Economic Spend East Coast BEE

Industry News Flash

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