The revisions are issued as a section 9 (5) which means we have 60 days to comment. The DTI will then collate the responses and issue a new set of codes. Exactly how long that will take is virtually impossible to know. The first set of codes were initially published in December 2004 and eventually gazetted in February 2007. However, in between the DTI issued codes in 2005 and then again towards the end of 2006. The codes issued in 2006 would have been gazetted if cabinet hadn’t commented that they were too complex.
The new B-BBEE act is soon to be gazetted. We anticipate more emphasis to be placed on fronting which appears to include any company that does not produce a scorecard. The consequence of this is that the procurement mechanism is being partly replaced with a legal obligation to comply. In effect non-compliance in the past meant potential losses, now means potential fines and even jail time.
Revised procurement recognition table will drop your level significantly.
More emphasis than ever before is going to be placed on making B-BBEE a success however difficult it may be. If not a success the next change will probably not be revised codes or a new act but the abolishment of B-BBEE in favour of nationalisation or another economic redistribution system.
Overall it is going to become more difficult to achieve a high score even though customers will still demand a high score. Since changes are inevitable and those changes will make becoming BEE compliant more difficult it now becomes absolutely vital to prepare for and achieve a good scorecard before the new codes are finalised.
New Supplier Development Element – 40 valuable points
While there is demand for a BBBEE Scorecard someone will be taking advantage, shouldn’t that someone be you…
Remember BEE Points = Happy Customers
That’s it for the time being. Regards Gavin and the EconoBEE Team
EconoBEE assists companies prepare their BEE Scorecard for Verification by offering consulting & advisory services, management tools and training courses. This ensures a cost effective and efficient approach to becoming BEE compliant.