EconoBEE Newsletter – End Feb 08 – 10-Step Process to BEE Compliance
10-Step Process to BEE Compliance
EconoBEE, leading BEE innovators and compliance experts have created the ultimate step by step process for companies to become BEE Compliant. The 10-Step Process to BEE Compliance is the most efficient and cost effective way to get your BEE Certificate.
We identified the 10 most important steps a business needs to take to best implement Broad Based Black Economic Empowerment. These steps have been carefully developed and perfected to make absolutely sure that the BEE compliance journey is managed and more importantly, improved upon every year in an effective way.
Our 10-step process has a perfect balance of highly valuable information and detailed instruction on the appropriate route to BEE compliance and what that means to your business. There is an element of document collection, profile/strategy and various other document templates created on your behalf. Professional consulting time, to make sure BEE compliance works for your business.
EconoLog – Launch Breakfast
We are hosting launch breakfasts for our new BEE product EconoLog. Econolog is a web based system that allows you to track/document your BEE activities in building up your scorecard, and in this way provide proof in order to be able to claim the BEE points you deserve.
EconoLog is the ideal tool for any company to use to make sure you keep track of all the documentary proof of any monetary/non-monetary contributions made which can be claimed as BEE spend.
We are hosting EconoLog launch breakfasts in Johannesburg (4th March), Cape Town (20th March) and Durban (April – final date to be confirmed shortly).
If you would like to attend our launch breakfast please send firstname.lastname@example.org an email with the name of the person attending and the preferred session.
Our first step to BEE compliance is to “Learn about BEE”. We are continuing with our popular full-day EconoBEE seminars in 2008. We have seminars scheduled in:
Cape Town – 19th March
Johannesburg – 27th March
Durban – April (date to be confirmed)
Additional details available online.
The Transitional period
The transitional period was due to expire one year after the codes were issued, i.e. 9th February 2008. The minister has extended the transitional period for another 6 months. (See our correction from the previous newsletter).
During the transitional period a measured entity has the right to decide to use either the transitional calculation or the applicable scorecard – generic or QSE. (See paragraph 11 of Code 000, statement 000 and paragraph 1.4 of Statement 800, Code 800 of the codes of good practice).
How does it work?
If a generic company chooses to use the transitional scorecard, it is allowed to calculate its ownership and management scores as per the usual method given in the codes, and multiply that score by 1.92. A generic can potentially earn 23 points from ownership and 11 points from management – a theoretical maximum of 34 points. If it earns no extra points, or chooses to earn no further points, it can multiply those points by 1.92 to achieve 65.28 points – ie achieve level 4 status.
On the other hand a QSE can potentially earn 28 points on ownership and 27 on management. If it chooses to apply the transitional scorecard it can multiply its score by 1.18, to achieve 64.9 points. If we round this up to 65, it will also be level 4 status.
1) The measured entity can elect to use the transitional scorecard – this cannot be forced onto you by your supplier or government.
2) The only entities who would logically choose this scorecard would be black or substantially black owned and managed companies – else your score would be very low.
3) An entity would probably want to use this scorecard if it is very difficult to calculate the rest of its scorecard. There is probably a link between the date of accreditation of verification agencies and the extension of this transitional period.
4) This extension does not imply that an entity has to or does not have to produce a scorecard. If your customer wants a scorecard you can choose which one to supply him.