Welcome back and happy new year to all our valued readers, clients and associates.
Certainly the most overwhelming part to the new year is the bittersweet view that 2015 is the year that the Amended B-BBEE Codes come into effect. On Monday morning while welcoming back all our staff I somewhat jokingly said “don’t forget to write 2015 and not 2014 when you write the date” to which Lianne our consulting manager replied “also don’t say the Amended Codes come into effect next year, it is 2015 and this is the year they need to be implemented”.
Considering the Amended Codes
The Amended codes come into effect from May 2015. Verifications after May 2015 will use the Amended Codes. Verifications before May 2015 can choose either the Amended Codes or the Current Codes.
The Amended Codes will fundamentally change the way BEE is approached by your organisation.
- Priority Elements will cause your score to drop 1 level if you don’t reach the sub minimum targets
- Increased targets will require additional spend
- Substantial change to the procurement points to level table will result in your level dropping multiple levels. The knock on effect of this is your suppliers scores will also drop substantially
Many companies are going to try and be verified before May 2015. This implies a verification completed and certificate issued before the end of April. If you are going to go this route it would be best to book an agency now because they are getting quite busy.
Apart from a verification before May it still remains vital to begin implementing activities inline with the Amended Codes. Our preliminary calculations suggest that a level 4 generic could become level 7 or 8. A level 2 QSE could become a level 8, 7 or 6 with good preparation. In all cases they may be non-compliant if prepared badly.
Notwithstanding the above, the sector codes and QSE codes are still not ready and some will not be finalised before May 2015. Remember, you heard it here first: Some of the amended codes are going to be delayed.
EconoBEE can assist you understand your companies requirements on the Amended Codes, offer advice to take corrective action and help you implement activities to achieve the best possible score on the Amended Codes. Contact us on 011 483 1190.
While there is demand for a BBBEE Scorecard someone will be taking advantage, shouldn’t that someone be you…