Empowering Supplier Temporarily Scrapped – 1 November 2016
EconoBEE is an expert consultancy. Our advice has allowed many organisations to work through and implement long term sustainable strategies that remain inline with the essence of the BEE legislation. Our Managed Service is an effective consulting service to effectively manage BEE. Alternatively if you have a scheme that could soon be outlawed contact us urgently to find the most pragmatic solution.
Empowering Supplier Temporarily Scrapped
The amended codes, which were finally gazetted in 2013 had some major changes. One of the key points was the concept of an “Empowering Supplier”. In order for a company to earn procurement points from their supplier the supplier HAD to be an Empowering Supplier. There were many complex conditions that an entity had to meet in order to be an Empowering Supplier. In many cases due to the nature of the business it was impossible to meet the Empowering Supplier criteria. This affected companies that mainly import – some in the motor industry, the oil industry, the computer importers, raw material importers. Those companies correctly deduced that even if they achieved level 1, it would be worthless because their customers would earn no procurement points. In 2015 the minister gave an extension for a year which defined all companies automatically as Empowering Suppliers.
We, and many other people made representations to the dti over this. All were were concerned that the criteria were impossible to achieve and would result in companies “giving up” because they could never achieve Empowering Supplier status, and therefore less transformation. The good news is the minister has now (temporarily) decided to scrap the concept of an Empowering Supplier, by defining all companies as automatically being Empowering Suppliers. A gazette was issued on 28 October stating “any Entity measured on or after 1 May 2016 will automatically be recognised as an Empowering Supplier until a further notice is issued.”. In essence there is now no need to worry about the Empowering supplier, which was unfortunately a big blunder of the new codes. If you would like to find out more about the empowering supplier status and what it entailed visit our YouTube channel.
In other news The government is looking at a sector code for the Defence Industry. 9 sector codes have been gazetted since the original codes were gazetted in 2007. The sector codes were Construction, Transport, Forestry, Tourism, Chartered accountancy, AgriBEE, Property, ICT and
Financial Services. Since the amended codes were gazetted in draft in 2012 and final in 2013 only 2 sector codes have been gazetted in a final version, namely Tourism and the newly introduced MAC (Media, Advertising and Communication). The Dti has many sector gazettes still in draft format! The Dti has also repealed some sector codes being Construction (now being re-introduced) and Accounting.
It is extremely concerning that it has taken so long and there is so little progress with regards to the sector codes. It has caused huge confusion amongst companies in terms of which scorecard to use and now instead of channeling resources into completing the existing sector codes and removing the confusion, a new one is being proclaimed.
The Dti have said that sector codes need to be developed for the specifics of an industry. However the sector codes have not differed substantially from the Generic codes of good practice and companies tend to compare their score against competitors which would in any event be following the same sector code. Is it necessary to have all these sector codes? No. Transformation needs to be encouraged and not discouraged as companies don’t do activities while they “wait” for their sector code to be issued.
BEE Facilitator Status The Dti have also gazetted a notice regarding the BEE facilitator status for the African Exploration Mining and Finance Corporation (AEMFC). If a company has an investment by a BEE facilitator the ownership is regarded as 100% black owned, 40% black woman owned and 20% designated group and no acquisition debt – which is very favourable in terms of BEE points to companies.
Contact EconoBEE to gather additional information on implementing BEE for your organisation. Click on our website for more information.
Draft Construction Codes Released
EconoBEE is hosting workshops on the draft construction sector code aimed at built environment professionals, construction companies and related construction industry. The draft commentary period is 60 days from date of gazette. After the commentary period is over, the DTI can gazette the final codes for immediate implementation at any time. Course Content:
We cover very briefly the theory of BBBEE, and then go straight into a practical workshop on how each of the components of the scorecard operates. We explain each pillar and indicator, and make it completely applicable to your business. During our workshop we will cover the Amended Draft Construction Sector Code in great detail.
Outcomes: You will leave the workshop:
With a better understanding of BBBEE and specifically the Draft Construction Sector Code
With an actual scorecard of your business using the Draft Construction Sector Code
With a strategy of how to proceed to improve your company’s scorecard
Knowing how to respond to your customers’ requests for your BEE status
AND feeling a lot more comfortable about implementing BBBEE in your organisation
Course details Title: Construction sector workshop Date: 3 November 2016 & 17 November 2016 Time: 08h30 for 09h00-13h00 Venue: 435 Rugby Avenue, Ferndale Cost: R1 710 incl VAT
Download a booking form and email email@example.com to secure your seat. Seats are limited. Additional information and a full calendar of all our courses are available on our website.
Talk to us today about other solutions to help your business achieve its objectives. Additional Information: Contact us on firstname.lastname@example.org or 011 483 1190. Booking: Download our registration form.
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EconoBEE Newsletter 01 November 2016
In this issue
Empowering Supplier Temporarily Scrapped
In other news
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.
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