The Amended QSE Codes will severely hurt small white owned business. The proposed amended to the QSE codes, published on Friday require substantial black ownership if the QSE is to reach any meaningful BEE level. This will affect all businesses with an annual turnover of between R10m and R50m

The new QSE scorecard requreis QSEs to earn points on all 5 elements as follows:

 

If there is no ownership, the QSE loses 25 points. It is unliklely, if not impossible for most companies to earn full points on every other element., especially management control and enterprise and supplier development. If a QSE drops only 6 points on those elements, it will reach 69 points.

The QSE Scorecard   

ElementPoints
Ownership25
Management control15
Skills Development25
Enterprise and Supplier Development30
Socio-economic Development5
Total100

 

Amended Codes Points to Levels Table

LevelAmended Codes  
1=100  
2=95 but <100  
3=90 but <95  
4=80 but <90  
5=75 but <80  
6=70 but <75  
7=55 but <70  
8=40 but <55  
Non-Compliant<40  

 

According to the points to levels table, 69 points is a level 7. However, because the company has no black ownership, it must drop a further one level to only reach level 8 due to the priority elements and discounting principle introduced by the Amended Codes of 2013.

It is quite possible for a previousy level 2 QSE to drop to level 8.

 

 

 

ElementPoints
Ownership25
Management control15
Skills Development25
Enterprise and Supplier Development30
Socio-economic Development5
Total100