Any verification undertaken from the 15th of August 2020, should be done so in such a manner that it does not exceed a period of 12 months from the most recent Financial Year – End. This was the subject of the SANAS clarification letter dated the 6th of April 2021...
EconoBEE would like to wish our clients, suppliers and you, dear reader, a very safe, joyful and peaceful festive season and New Year. We will be closing our offices on the 15th of December 2021 and be back to championing B-BBEE, EE and SD for our clients on the 3rd...
It is with great pleasure that we announce that EconoBEE is officially 51% Black owned and is the leading Black Economic Empowerment (BEE) Strategy and Management Consulting firm in South Africa. Founded in 2000, EconoBEE is a highly specialised, niche corporate advisory business that specialises in providing companies with Research,...
The Commission of Employment Equity is currently in consultation with industry stakeholders to finalise the highly-anticipated Employment Equity Draft Amendment Bill. One of the key features of the bill will be introducing tailored Economically Active Population (EAP) targets. For employment equity compliance, this will be a simple exercise that may...
A recent ruling by the B-BBEE commissioner has brought into sharp focus the misunderstanding with regards to the legitimate beneficiaries of B-BBEE. https://www.bbbeecommission.co.za/vicky-adey-consulting-cc-withdraws-from-government-panels-and-surrenders-for-cancellation-its-cidb-grading-for-misrepresentation-of-b-bbee-status/ For B-BBEE purposes, the definition of black is very specific and in terms of the Broad-Based Black Economic Empowerment Act (B-BBEE Act) the definition of “black people”...
In recent months, there has been some confusion surrounding the activities relating to Socio-Economic Development (SED) from a B-BBEE perspective, and Corporate Social Responsibility (CSR). Let’s look at the definition of each of these elements. Socio-Economic Development (SED) is defined in the B-BBEE Codes, as monetary or non-monetary contributions implemented...
A new amendment to the Employment Equity Act will have serious implications for companies who plan to do business with government going forward. In terms of section 53 of the Amendment Act, measured entities will be issued with a compliance certificate for Employment Equity which is valid for a period...
Are you uncertain as to whether you are required, by law, to submit your employment equity forms? The submission window to submit your employment equity forms opens up on the 1st of September 2021. What is the current definition of a designated employer? An employer who employs 50 or more...
The relatively new Information and Communication Technology (ICT) sector is made up of the manufacturing and services sectors whose main activities are linked to development, production, commercialisation, and intensive use of new technology. This sector is the fastest-growing sector within South Africa, however, there does exist a scarcity of participation...
Verification is an audit process that is required in order for you to be issued with a B-BBEE certificate. All five elements of the scorecard are verified with supporting evidence. Verification happens through a SANAS accredited agency which is empowered through legislation to issue you with a valid B-BBEE certificate....
The 21st Commission of Employment Equity Report has been issued and it shed light on some Employment Equity developments. These are also in line with the Draft Amendment Bill that is still being reviewed in parliament. As expected, the report has updated EAP targets which are useful in the quantitative...
As we all know, the Department of Labour is constantly conducting inspections throughout the year with designated employers. These inspections are to ensure that the information submitted in the annual Employment Equity Submissions is correct and in line with the Employment Equity Act as well as the EEA Plan of...
Dear Business Owner On the 29th of November 2018 the BBBEE Commission came out with a guide entitled “Understanding the use of Trusts in B-BBEE Ownership Initiatives”. Two important issues were raised by the Commission in its guide: 1. The use of educational trusts as part of a BBBEE...
The COVID 19 pandemic has had a devastating impact on the South African economy. Many companies are struggling to ensure that they keep up with their BBBEE activities and maintain their points on the scorecard. The reality is that the B-BBEE legislation will not change due to the impact of...
During the month of May, EconoBEE will be running specially tailored full-day and half-day B-BBEE workshops with an added twist! Our Directors will be unpacking extra information which includes, but is not limited to, the following: How the new measured period will impact measured entities The debate around sale of...
The governing body of verification agencies, the South African National Accreditation System (SANAS), have sent a letter of clarification to all verification agencies in relation to the issue of the measured period. The letter is as follows: “I refer to the correspondence issued by Mr Yuneal Padayachy on 14 August...
Ownership in the B-BBEE codes is by far one of the most complex elements to get right. Some entities feel bringing in new shareholders might impact the strategic direction of the entity as a whole; some just want to sell a stake but keep it minimal. Sale of assets, as...
There are 2 types of Grants that are awarded to companies to assist with Training and Upskilling. These are the Mandatory Grants and Discretionary Grants. Let’s look at the difference between these Grants and the benefits of each: Mandatory Grants This Grant is payable to all levy paying companies upon...
The B-BBEE Commission has recently sent out a notice that it may publish the reports of non-compliant companies! Please read the below to understand the context of the notice. JSE listed companies, public companies or organs of state and SETAs must submit annual compliance reports to the B-BBEE Commission in...
The law states that a company with a payroll that exceeds R500 000 per annum must be registered to pay the Skills Development Levy (SDL). All companies with 50 or more employees need to establish a Skills Development Committee and consult with the Committee prior to the submission of the skills...
Recently the Parliament’s Portfolio Committee on Employment and Labour has called for public comment on the Employment Equity Amendment Bill. The bill has been described by President Cyril Ramaphosa as a ‘game changer’ for Black Economic Empowerment in South Africa. The Minister of Labour, after consulting with various sectors including...
Firstly, compliments of the season to you all and here’s to wishing everyone a good 2021! I hope you have all managed to remain safe and hopefully had a decent break! Onto interesting business matters now……. Towards the latter part of 2020 we had a non-compliant QSE client come to...
EconoBEE was recently asked to participate in a live, televised interview by eNCA in relation to the Supreme Court of Appeal’s ruling on the PPPFA (preferential procurement policy framework act). Headlines such as “Court rules BEE pre-disqualification in public procurement invalid, unconstitutional” got many interested parties talking about B-BBEE. Our...
Fronting is a form of fraudulent misrepresentation in an attempt to circumvent the BEE codes. There are various forms of fronting indicators listed in legislation. In consulting, we have come across some glaring examples which we would like to point out: The black people identified by an enterprise as its...
B-BBEE News! A recent article by Business Tech, regarding South African companies trying to dodge BEE laws, illustrates how critical it is to understand and adhere fully to the B-BBEE Act. Zodwa Ntuli, the current B-BBEE commissioner, said that 83% of complaints received since 2016 were related to fronting. The...
ALIGNMENT OF WORKPLACE POLICIES WITH EMPLOYMENT EQUITY ACT On the 20th of August 2020, the Minister of Employment and Labour published the Draft Code of Good Practice on the Prevention and Elimination of Violence and Harassment in the World of Work (Draft Code) for public comment. The deadline for...
INDICATIVE PROFIT MARGIN CALCULATION The indicative profit margin is applied when a measured entity has made less than a quarter of the industry norm. Enterprise development, supplier development as well as socio-economic development are based on the percentage of either a NPAT or an indicative profit margin where a measured...