Broad-based is the winner – EconoBEE Newsletter – 07 October 2010

EconoBEE - BEE Points = Business

Over the last month or so I have seen more companies than ever before focus on their Broad-Based BEE Scorecard. Companies are advertising their good social development projects and overall the Broad-Based BEE Scorecard is starting to come through as the sole means to measure Black Economic Empowerment.

EconoBEE is a keen supporter of Black Economic Empowerment when it is implemented correctly. We feel proud to see a company achieve a good scorecard using our software tools. We feel equally as proud when we see our clients make use of the wonderful ideas we offer during our training courses. We help our consulting clients gain a level or two, in some cases without spending additional money because our advice makes business sense.

Congratulations – Broad-based is the winner

The leader of the DA, Mrs Helen Zille has written at length about the need for empowerment to be broad-based. The DA has had a broad-based policy for a long time, but has never publicised it widely. Nevertheless we congratulate Premier Zille’s call for broad-based empowerment. However, the DA’s policy falls way short of the dti’s codes of good practice. It offers no objective measurement, like the scorecard does, and it gives no targets or indicators to guide compliancy. It falls back onto a subjective approach to broad-based black economic empowerment.

Congratulations must also go to the department of trade and industry – and the specific people who guided the original act through parliament, and then spent many years developing the codes. In researching this article we looked back at the draft codes of 2005 and 2006 and compared them to 2007. It is very motivating to see how they progressed and improved to the final stage.

Latest information, tips and tricks to earn 35 points for BEE Procurement and Enterprise Development – more info…

Congratulations must also go to the tens of thousands of companies (many of whom are our own clients) that are making an effort to comply and have produced their own scorecard or verified certificate. While there is still a long way to go, progress is being made towards true, broad-based empowerment.

  • Many companies are spending a lot of money developing skills
  • Many are working very hard on helping enterprises grow
  • Corporate social responsibility is still being implemented – helping the poor and poverty stricken

Yes, there is still a long way to go, but our first challenge was to get everyone to start thinking broad-based. 
We are even seeing the politicians calling for broad-based.

Broad-Based BEE is objectively measured through a scorecard which allows companies to target broad aspects of their business to earn empowerment points. Through a scorecard a potential customer can decide if the score achieved is suitably high. EconoBEE assists companies collect BEE information, earn more points and go through their verification effortlessly.


PIC criticises “Steel Deal”

The PIC has now stated that they are unhappy with the ArcelorMittal deal. They specifically ask why the BEE deal was not broad-based.

We were the first BEE Consultancy to express reservations about the deal, by calculating the number of points that AM would earn via the deal. Our concern then and now is AM chose to call this a broad-based deal when it hardly earned 5 points on the scorecard. They had various clauses in their deal that were unenforceable, showing really poor knowledge of B-BBEE and the codes. At one point they had stated that after the deal is completed they will call in a verification agency to evaluate their BEE score.

Our view has always been that you evaluate your score before doing the deal, and only call in a verification agency to verify once the points are earned. Never call in a verification agency to help you see how many points you have earned, after the deal is concluded.

We believe that the broad-based approach to empowerment is going to remove a lot of the negativity around BEE, and ensure that the right people benefit in the right way.

Support Broad-Based Black Economic Empowerment and encourage all of your suppliers, customers and friends to become BEE compliant.

 


BEE Verification Solutions

ABVA (Association of BEE Verification Agencies) a marketing organisation protecting the interests of their members has come out in arms against the DTI for suggesting that accounting professionals be accredited to do BEE Verifications.

We have for a long time suggested that the accounting profession get involved in BEE Verification, primarily because the purpose of a BEE Verification is extremely similar to that of an accounting audit. The skills required are similar and accounting professionals are more than qualified to learn to do a verification.

It is not surprising that the DTI has been forced to make a move. SANAS, the organisation responsible for accrediting BEE Verification agencies, has managed to accredit less than 50 agencies, even though the demand for BEE verification exceeds 250 000 companies per annum.

ABVA members stand to lose a substantial portion of their market share if accounting professionals are allowed to offer BEE Verifications.

This will have benefits for companies wanting a verified scorecard:

  • Reduced verification costs
  • Increased capacity

The advice for business remains the same:

  • Prepare your scorecard
  • Earn your points before you go for your verification
  • Your customers do not want an accredited non-compliant certificate

How to be “verification Ready” and earn more points?
Not sure how to get a BEE Scorecard, click here to see a demonstration of how best to produce your own BEE scorecard.


While there is demand for a BBBEE Scorecard someone will be taking advantage, shouldn’t that someone be you…


Want us to manage your BEE Process – simple 10 steps to BEE Compliance.

Use our pre-prepared “Verification Ready” documents and templates in your business – contact us for more.


Turnover below R5 million – find out how to get your BEE Exemption.

Is BEE procurement a pain? Sort it out quick and easy – click here.

EconoBEE Newsletter
07 October 2010

In this issue

  • Congratulations – Broad-based is the winner
  • PIC criticises “Steel Deal”
  • BEE Verification Solutions

In other news

About EconoBEE

EconoBEE is an expert BEE consultancy. EconoBEE help companys Become BEE Compliant, prepare for verification, earn maximum BEE Points and ensure that they achieve the BEE Level they need to get more business.

Our services include BEE Management Systems, Training, EME Pack, Completely Managed Services; consulting and advisory and Procurement Solutions.

As leaders in the industry we are driven to help maintain and develop knowledge in the BEE industry.


Already have a BEE Certificate?

Please send it to us and we will include it in our BEE Procured database.


Contact Us

Tel: 011 483 1190
Fax: 011 483 1195
Email: info@econobee.co.za
Web: www.econobee.co.za


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Remember
BEE Points = Happy Customers = Sustainable Business


That’s it for the time being.
Regards
Gavin and the EconoBEE Team

Executive summary of B-BBEE

Turnover below R5 million per annum – automatic BEE status

Turnover above R5 million per annum – you need a BEE Scorecard. Our workshops, scorecard tools, procurement manager or advanced managed services will be best for you.

Complete Managed BEE Service

Tip:

BEE points are an investment to your business, but only when you do it right – contact us.

10 Strategic Steps to B-BBEE!

We have prepared an easy to follow guide “B-BBEE in 5 Minutes” and “Crash Course to BEE Verification” which explains BEE in a simple step by step approach.

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