EconoBEE - BEE Points = Business
28 Jun
EconoBEE - BEE Points = Business



EconoBEE Comments on the recently gazetted ICT Charter

The dti minister Dr Rob Davies has gazetted the final ICT Charter in terms of section 9(1) of the B-BBEE act. This means that as from the date of the gazette, all businesses in the ICT sector must use the ICT charter in calculating their B-BBEE scorecard, instead of the Codes of Good Practice.

The ICT charter was gazetted as a draft in June 2010, with the initial expectation that it would be gazetted shortly thereafter. Various factors contributed to it being delayed to the extent that every six months the dti and the ICT council would state that gazetting was imminent, but nothing would happen.

Codes of Good Practice
When the original codes were gazetted in 2007, we were impressed with the concept. We excused the then minister’s many errors, misspellings, and other inconsistencies. We fully expected that the dti would solve these “little” issues. As time went on the dti did indeed make some minor adjustments and issue some comments.

The Sector Codes
As each sector code was issued we expected that the sector code would provide additional explanations about how it should be interpreted. We had hoped that some interpretations would assist us in looking at the original codes.

To a small extent, this indeed did happen:
Some examples of the errors in the codes related to the adjustment for gender, which was handled in a better way in the transport sector code. The construction sector code gave more details around enterprise development. The road freight sub-sector codes gave details around how early payment of invoices worked.

ICT Sector
In the case of the newly released ICT sector code, it has taken a huge step backwards. The ICT codes are riddled with spelling mistakes and grammatical errors. They perpetuate many errors in the codes without making any effort to explain or improve them. We could live with the original codes having errors – on the understanding that over time the dti would issue additional announcements.  We cannot accept that the ICT charter, issued more than five years after the codes, still has these problems. This is not purely an academic exercise, it has huge ramifications.

Regardless of errors, all companies operating in the ICT sector will need to follow this code to create a scorecard. To be successful you should begin by gaining knowledge of how the ICT sector scorecard is going to affect your business. Then you will need to do a comparison scorecard calculation to avoid any weakness while simultaneously trying to quickly implement the activities that vastly affect your score.

Read full article…

ICT Sector Codes Breakfast Training session

EconoBEE is holding a morning event to explain the new ICT sector code, and how it impacts on your business and your B-BBEE rating.

ICT (information communication technology) is a big industry covering computer hardware, software, internet, communication, telecommunications, broadcasting, electronics.

Who should attend:
All CEOs, MDs, FDs, transformation people involved in the ICT industry;

Topics Covered:
–    The ICT sector code
–    The scorecard
–    Differences between ICT and Codes of Good Practice
–    Strategies around ICT

Date and time: Friday 6th July 7:00 for 7:30 to 12:00 – breakfast will be served
Venue: Monte Casino – JHB
Time: 7:30 – 12:00
Price: R1500 excl VAT (R1710 incl VAT)

What you get:
Detailed course manual, including copy of the ICT charter.
CD containing available information relating to acts, codes, charters

To book please fill in the booking form and fax it to 011 483 1195 or contact us directly on 011 483 1190 or

Property Sector Codes Breakfast Training session

EconoBEE is holding a morning event to explain the new Property sector code, and how it impacts on your business and your B-BBEE rating.

The property sector covers all aspects of property: development, ownership, estate agencies and brokers, commercial , renting, management.

Who should attend:
All CEOs, MDs, FDs, transformation people involved in the Property industry;

Topics Covered:
–    The Property sector code
–    The scorecard
–    Differences between the Property Sector code and the Codes of Good Practice
–    Strategies around the property sector

Date and time: Friday 13th July 7:00 for 7:30 to 12:00 – breakfast will be served
Venue: Monte Casino – JHB
Time: 7:30 – 12:00
Price: R1500 excl VAT (R1710 incl VAT)

What you get:
Detailed course manual, including copy of the property charter.
CD containing available information relating to acts, codes, charters

To book please fill in the booking form and fax it to 011 483 1195 or contact us directly on 011 483 1190 or





Future of the Charters

We have never been fans of the charters. We said that charters will cause more problems than they are worth. Each charter goes through various processes before it can be considered for gazetting by the minister. In the case of the recently released ICT charter, the ICT industry has been working on a charter since 2004. It has cost many millions to get it finally gazetted, and the final charter is still a mess! Our complaint about the charters was that they would be delayed and many businesses would use the imminent release of the charter to delay implementing any B-BBEE activities.

Each charter adds unnecessary work on to the verification industry and additional admin for many businesses.  SANAS, one of the regulatory bodies requires that each verification agency be accredited via an extension of scope for each charter that they need to verify companies. Strangely, in the case of IRBA, the other regulator, auditors do not need any extra skills or knowledge in order to verify for a charter. To some extent this makes sense: each charter is so similar to the generic codes that it makes no difference. If this is truly the case, then the charters serve no valid purpose.

There is one reason why some people like the charters: Each charter begins with a commitment by stakeholders to achieve the goals of the charter. For example, the property charter states that all stakeholders commit to achieving the targets sets out in the charter. One of those targets is 25% black ownership. A report by Moneyweb quoting Marc Weiner, CEO of Redefine, one of the largest property groups in South Africa has put a different perspective onto this. In the interview ( he stated that achieving the ownership target was not attainable, nor feasible. The clear implication is that Redefine will not be reaching those targets, virtually nullifying that commitment in the charter. Without that commitment, the charter could just as easily be substituted by the codes of good practice. In a way Redefine has called the charter’s bluff. The charter, and the act do not make allowances for any penalties by not adhering to it – commitment or not.

Many companies within a sector code do not even realize that their sector has given a commitment to achieving the targets.

The charters require that sector councils be set up to monitor and report on progress. They must also advise on implementation and interpretation. To date, we have heard almost nothing from the sector councils. Some are not even contactable. Most have not even issued annual reports as required by the charter.

Ready for BEE Verification?
Prepare for your next BEE Verification

A successful BEE verification is the key to business success. With the emphasis that is now placed on having a good BEE status the question has changed from “do I need a BEE status” to “what level is required or will my clients accept this”. This fundamental mindset shift from “do I” to “how good” has now virtually guaranteed that a good level of compliance directly impacts on the amount of business a company is awarded.

On the other hand ensuring that your company is successful during its BEE verification can be stressful and time consuming. Dedicated staff members should be involved heavily in this process. They need a good understanding of B-BBEE and of the verification process. In-particular considering how often interpretations within the legislation change, how different agencies have vastly differing interpretations and that when errors are made, ensuring that the correct procedures are followed.

EconoBEE is proud to announce the fourth annual EconoBEE Conference – How to prepare for a B-BBEE Verification. EconoBEE is an expert BEE consultancy who assists companies work through and implement BEE properly while earning maximum points and spending minimum amounts of time. Make your booking early and qualify for our early bird special.

Date:30 August 2012 – JHB – Gallagher Estate
14 August 2012 – CPT – Belmont Conference Centre
21 August 2012 – DBN – Makaranga Garden Lodge
Time:8:30 for 9:00 – 17:00
Price:R3500 excl VAT (R3990 incl VAT)
Booking Details:Download our brochure and fax to 011 483 1195 or fill in our online form
Contact 011 483 1190
Early bird special – EconoBEE V3 worth R3500 if booked and paid for two weeks prior to the event you are attending.





5 Stages of fronting

Fronting is a major problem but when most businesses are confronted they go through these 5 stages.

1)    Sure, we have a B-BBEE certificate. I’ll send it to you.
2)    You have a query, Oh? You’ll have to talk to my boss, consultant, I’m only the PA.
3)    Who do you think you are to tell me my certificate is invalid?
4)    Well, if my certificate is invalid, that’s tough go somewhere else.
5)    I’m terribly sorry. I don’t want to lose your business. What can I do to get a suitable scorecard.

Alternative to 5)
5) Dear staff, due to poor economic conditions we are closing down. It wasn’t my fault.

Manage your BEE process better
EconoBEE’s complete managed service is designed to help you earn more BEE points, be less admin intensive and ultimately less costly. Contact 011 483 1190 or visit for more info.







Preferential Procurement Targets Increasing – Save Time by using the BEE Procured database containing over 25 000 BEE Certificates.


No time to manage your BEE scorecard. Our consultants can phone your suppliers for a BEE certificateManaged Service.




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

Want us to manage your BEE Process – Managed Service.

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

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

Need a scorecard – produce one yourself – EconoBEE V3.

EconoBEE Newsletter
28 June 2012

In this issue

  • EconoBEE Comments on the recently gazetted ICT Charter
  • Future of the Charters
  • Ready for BEE Verification?
  • 5 Stages of fronting

In other news

About EconoBEE

EconoBEE is an expert BEE consultancy. EconoBEE helps businesses 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, Complete 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.

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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 a complete managed services will be best for you.

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