EconoBEE Newsletter – July 2008
The Impact of Chinese as Black on your BEE Scorecard
19 June 2008 – Published by Skills Portal
The Pretoria High Court has issued a ruling to include Chinese people in the definition of black into the Broad Based BEE Act and EE act.
This will affect your calculation of your scorecard. Previously the act defined black as being African black, coloured and Indian people who are SA citizens or became an SA citizen before 27th April 1994.
In terms of Broad Based Black Economic Empowerment a Chinese person will still need to be a South African citizen or became a citizen before the implementation date of the constitution of the Republic of South Africa Act of 1993 or prove that they should have been granted citizenship before such date.
Where does this affect companies? In the past the scorecard would regard Chinese people as non-black and as a result no BEE points would accrue.
Many companies scorecards will increase by including Chinese people and in general cause the average score of all companies to rise because of Preferential Procurement and the flow through of BEE scores.
BEE Procurement and Enterprise Development
Procurement is one of the most important elements of the BEE scorecard. It is worth 20 points for generic companies and 25 points for QSEs – this is nearly one quarter of the entire BEE scorecard. Enterprise Development is worth an additional 15 points (25 for QSEs). The two together – Indirect Empowerment – is the single biggest pillar of BEE – even more important than Ownership and Management!
We are pleased to announce another exciting EconoBEE initiative to help assist companies and government understand and implement their Preferential Procurement Policies to maximise BEE points. In addition we will take them through developing Enterprises that are closely associated to them to get the most out of Enterprise Development.
This conference “BEE Procurement and Enterprise Development” will ensure you get your Procurement right and assist your Enterprise Development activities!
Early Bird Special
Book and pay before 12th August 2008 and get a 15% discount
Book now to reserve your place.
JHB – Gallagher Estate – 2nd September 2008
Cape Town and Durban to be confirmed shortly
“A well designed Preferential Procurement procedure can increase supplier efficiency and grow Enterprises”
Hall of Shame and Fame
(David vs Goliath)
This month we have identified three inductees into the hall of shame, though one is headed for the hall of fame.
FNB recently has told its suppliers that “we require a certificate from an accredited agency.”
We regretfully had to go on the offensive and explain to FNB that there were no “accredited agencies”, that they were not following good corporate governance in this issue, and that they were operating contrary to the spirit of the Broad Based Black Economic Empowerment Codes of Good Practice and dti policy.
To their credit FNB has changed their requirements: ”to ask the supplier to provide independent verification/supporting documentation of the criteria upon which the rating is based, which we would view as good corporate governance.”
This is more than good corporate governance. It is an absolute requirement of the Codes of Good Practice. Unless you can provide suitable evidence or documentation you cannot earn any points. It is good news that FNB are now going to insist on your providing them with evidence, rather than disregarding your scorecard entirely.
So they could be moved from Hall of Shame to Hall of Fame as we don’t hold grudges against their indiscretions of the past.
EconoBEE invites consultants, lawyers, accountants, business advisors to become an EconoLog implementer or reseller and earn exceptional income.
An EconoLog Implementer can consult to their own clients using our highly experienced backend for support.
How much can you earn?
EconoBEE will share some of the income with you, depending on the amount of work you do you can earn exceptional income. This could be up to R6000 per client per month.