EconoBEE Solves QSE Verification Problem – EconoBEE Newsletter 14 July 09

EconoBEE – Newsletter July 2009
Helping you and the Economy Grow

Empower your Business

Executive summary of B-BBEE

Turnover below R5 million per annum – automatic BEE status

Between R5 and R35 million – simplified scorecard

Above R35 million – full compliance

EconoBEE Training

Weekly half day BEE Workshop

16th and 23rd July 2009 – BEE Verification Conference

1st, 8th and 15th October 2009 – BEE Procurement and Enterprise Development Conference

10 Simple Steps to Become BEE Compliant!

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.

Dear Name

Update – are QSE and sector code certificates valid?

We spoke recently about QSE certificates that may be invalid after 1st August because no verification agency has been given an accreditation to renders services for code 800.

This resulted in a call from Christinah Leballo from SANAS who informed us that agencies do indeed have accreditation to render code 800 verification. She explained that SANAS did not want to complicate the certificate by adding in the words “Code 800 QSE”. Personally I don’t think that three extra words on a certificate is going to ruin the aesthetics of the certificate. (Look at an example). She did however state that if we considered it confusing that certificates do not have Code 800 QSE on it, they will address it by adding those words onto the certificate which now has been done (see example). This means that QSE certificates produced by accredited agencies will now be valid after 1st August 2009.

We don’t consider it confusing at all. As far as we are concerned, if an agency does not have accreditation rights to render a specific service, they are not allowed to do so. SANAS is an accredited ISO accreditation agency. Their role is to accredit organisations to do specific tasks, e.g blood transfusion services, medical laboratories, calibration laboratories. The purpose of ISO is to ensure that procedures, methodologies and standards and complied with and followed and of course to remove confusion.

She also confirmed that no agency has been given accreditation to verify on any of the gazetted sector codes. This clearly means that any entity in the tourism, construction or forestry industry will not be able to produce a valid certificate and any certificate they do produce will NOT be able to be used to earn procurement points.

There is almost no chance that the dti will be able to produce an interpretive guide and verification manual for each of the sector codes by 1st August, and SANAS will not be able to accredit any agency by then. We would be surprised to see this happen before the end of the year.

The only alternative is for the minister to issue a notice allowing all entities in those industries to use the codes of good practice, or alternately granting an extension to companies in those industries from having to produce a valid scorecard.

Why Standards Matter?

ISO (The International Standards Organisation) gives this description:
“Why standards matter

Standards make an enormous and positive contribution to most aspects of our lives.

Standards ensure desirable characteristics of products and services such as quality, environmental friendliness, safety, reliability, efficiency and interchangeability – and at an economical cost.

When products and services meet our expectations, we tend to take this for granted and be unaware of the role of standards. However, when standards are absent, we soon notice. We soon care when products turn out to be of poor quality, do not fit, are incompatible with equipment that we already have, are unreliable or dangerous.

When products, systems, machinery and devices work well and safely, it is often because they meet standards. And the organization responsible for many thousands of the standards which benefit the world is ISO.

When standards are absent, we soon notice.”

The relevance? We are still seeing various verification agencies accredited by SANAS (on behalf of ISO) that give vastly differing opinions on various aspects of the codes. As a result you cannot be assured that your scorecard will be consistently calculated by different agencies, or even by different analysts from the same agency.
We heard today of an agency that allowed a measured entity to choose their own inception date of enterprise development spend. The codes are clear, the inception date is the commencement date of statement 700, i.e. date of the publication of the codes (9th February 2007, or up to 5 years before, but definitely not after!).

It means some companies have had to spend twice as much this year to make up for last year’s shortfall, but if they had chosen this particular agency, could have saved their money. Since ED is 3% of net profit after tax, this “saving” could be millions of rands for large companies. On the other hand, any company that chooses to use this agency and allows their interpretation, stands the chance of their scorecard being declared invalid.

Some standard indeed! It’s about time SANAS, or ISO did something about it.

This is why it is so important to be well prepared for your BEE Verification. The best way to do this efficiently is to be well briefed and prepared on all BEE verification requirements. Our 10 step process always works very well to ensure a consistently high standard.

BEE Procurement and Enterprise Development Conference

Announcing our next fantastic BEE Conference – BEE Procurement and Enterprise Development. With the tremendous success of last year’s BEE Procurement and Enterprise Development Conference we have decided to host a bigger and better event aimed at making the procurement and enterprise development elements easier and more effective to implement.

Diarise October 1st in JHB, 8th in CPT and 15th in DBN.

Prepare for BEE Verification

The first of three presentations was held in JHB last week and was a fantastic success. Our delegates were completely blown away by the amount of information we provided, the way we provided it and the handout was extremely practical and very valuable. One delegate remarked that the handout alone was worth the entire fee.

We do still have a few seats left in CPT this Thursday and in DBN next Thursday – “Prepare for BEE Verification” conference in JHB, CPT and DBN.

16th July 2009 – CPT – Belmont Conference Centre
23rd July 2009 – DBN – Makaranga Garden Lodge

R2850.00 plus VAT (R3249 incl VAT)
To reserve your seat please phone 0861 11 3094 or visit

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

Not sure how to get a BEE Scorecard, click here to see a demonstration of how best to produce your own BEE scorecard.


BEE Points = Business

That’s it for the time being.

Keith and the EconoBEE Team

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