DTI closes BEE Portal – EconoBEE Newsletter – 14 May 2013

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DTI closes BEE Portal

The dti has closed its BEE certificate portal.
PUBLIC NOTICE: Termination of B-BBEE Information Portal (Internet Software Application)

The Department of Trade and Industry (the dti) regrets to inform members of the public that the Broad-Based Black Economic Empowerment (B-BBEE) information portal has been terminated and will no longer be available effective from 30 April 2013.

For more information contact: 0861 843 384

The portal was intended to become a central repository of all valid BEE certificates as mandated by the B-BBBEE Codes of Good Practice. However in practice it did not work that way.
Many companies did rely on the portal to manage their own procurement. The good news  is there is an alternative portal: BEE Procured.

The objective of the dti’s portal was to store all valid BEE certificates. Companies that had been verified were encouraged to submit their BEE certificate or data to the portal. There was a charge, and the system would then be allocated a URN – a unique number to that certificate.

Unfortunately there were insufficient checks and balances. For example we found an auditor who kept using the same URN number for his client, proving that he had not updated the data each year, or paid his annual fees. Even if genuine certificates had been uploaded, insufficient checking was done to ensure that this was a valid certificate. For example the recent high profile incident where Nu World issued the same certificate in 2012 as they had been verified in 2011. In this case someone, unknown, had modified an existing valid certificate by changing the date to the following year.

The dti’s portal should have kept data of all invalid certificates, as well as fraudulently produced certificates. It should also have become the main database that the dti and the sector councils could use to measure BEE compliance. An accurately produced BEE certificate is the only indicator of an entity’s BEE compliance. The dti does not need to do a big complex survey if all BEE certificates are available.

A good alternative to the now closed BEE portal is our very own BEE Procured. BEE Procured is what the portal should have been.
It stores companies and their BEE certificates.

All certificates are vetted and checked before being captured. This is why we have become known as the “fronting police” of the industry. We are not prepared to compromise the integrity of the database by capturing an invalid certificate. We reject 2-3 certificates per day!
All certificates are captured as a scan, but also the underlying data is captured.

We store;

  • The type of certificate, generic, QSE, EME:
  • Scores, levels, and points achieved for each indicator
  • Percentage black ownership and black female ownership
  • The sector code used
  • The verification agency, auditor or accounting officer
  • Companies/tradenames included in the verification
  • The issue date and expiry date of the certificate
  • The industry that entity belongs to

Additional  developments include more details of the entity – its regional representation, products and services offered. This will allow us to for example: find black women owned companies who sell a particular product in a particular region.

BEE Procured goes far beyond that. It also allows companies to set up their own procurement databases, but uses the certificates of their suppliers from the central repository. It picks up the correct certificate based on the verification dates and the dates of each company’s financial year.

In this way it helps calculate the procurement BEE score without having to capture any more data, and often without having to even collect more certificates. The database currently has over 35 000 certificates.

Further if we do not already have their certificates, our call centre calls companies who are suppliers to our clients asking them for a BEE certificate. All comments are written down, as well as any documentation, e.g in process letters, so our clients have a full audit trail of all suppliers, their scores, and other information they have given us. It is during this process that we check all certificates received for validity.

Examples of areas we check:

  • Have the scores per elements been added up correctly
  • Is the company genuinely an EME or QSE
  • Was the correct sector code applied
  • Is the agency accredited or approved
  • Does the high black ownership score reconcile with the zero points earned on management control or vice versa

Interesting stats:
Based on all certificates in our database, even older one dating back to 2006, which does imply duplicate companies:

% EMES – 41.6%
% QSEs – 29.3%
% Generics – 29.1%

Average level for all generics 55.1 points – level 5
Average level for all QSEs 73.8 points – level 4

Average black ownership for generics – 24.2%
Average black ownership for QSE – 17.3%

% of EMEs that are more than 50% black owned (ie level 3) 11.8

NB Averages are calculated based on mathematical averages, ie totals divided by number which may distort results, so this is not a rigid statistical study

Where to from here? Procurement will still be extremely time consuming and frustrating to collect every BEE certificate from every supplier, check that it is issued correctly and data capture the contents to calculate the score.

EconoBEE’s BEE Procured managed service is the perfect solution. Our consultants have access to thousands of BEE certificates. If they don’t have the certificate then our call centre will phone on your behalf. In addition we will help you strategise as to how to earn the most points, which suppliers are hurting you and better yet which ones are helping you become successful. In the end the time consuming and frustrating task of collecting BEE certificates becomes a strength for your business.

Interesting article on Moneyweb – JSE-listed Nu-World and its doctored BEE certificate

Last week Moneyweb published an interesting article entitled – JSE-listed Nu-World and its doctored BEE certificate.

Let our consultants save you time on B-BBEE.

Preferential Procurement – Save Time by using the BEE Procured database containing over 30 000 BEE Certificates.
Procurement Managed Service: Our consultants can phone your suppliers for a BEE certificate – Managed 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
14 May 2013

In this issue

  • DTI closes BEE Portal
  • Interesting article on Moneyweb – JSE-listed Nu-World and its doctored BEE certificate

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.

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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BEE Points = Happy Customers = Sustainable Business

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.

Your time on your business, our time on your BEE status


Through our managed service avoid the BEE distraction and let our consultants implement Broad-Based Black Economic Empowerment for you.

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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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