Absolutely! Your verification agency wants a list of suppliers and spend and their actual scorecards. They want to see your calculation of how many procurement points you are claiming. BEE Procured gives you that information instantly, which is given to the verification agency.
Absolutely! We have a complete managed service for procurement – contact our consultants for more info.
Fronting is when a company misrepresents their BEE status. This can happen when EME’s use the Codes of Good Practice threshold of R10 million, when they belong to one of the Industry Charters with a lower threshold. This can also happen when a company uses the holding company’s EME status instead of producing a scorecard.
Perjury is when a company lies under oath. A perjury charge may be brought when a company makes a false statement after promising to tell the truth in a legal situation; for example, if you sign in front of a Commissioner of Oaths that your company’s turnover is less than R10 million, when in actual fact it is not.
EconoBEE is not a Verification agency. When we produce your documents, we are consulting to you, not verifying you. We do not sign your documents. We produce the documents which you sign in front of a commissioner of oaths. Some accountants are not always aware of the different charters and sector codes and the different thresholds. They usually do not include your procurement recognition level. An EME is a Level 4 with a Procurement Recognition Level of either 100% if your company is less than 51% black owned. You are a Level 2 if your business is at least 51%, but less than 100%, black owned and you can prove this with your ID Document and your Company documents. A level 2 has a Procurement Recognition Level of 125%. If your company is 100% black owned, then it will be a Level 1 with a Procurement Recognition Level of 135%.
Your customer is asking for your status because it is going to help him improve his level on his scorecard. It improves his Procurement element. In addition, the codes specify that Generic companies can earn an additional 7 points on their Procurement Scorecard by spending 30% of their total procurement with EMEs or QSEs. They also earn additional points by spending with Black Owned and Black Female Owned companies.
Do I need to sell shares to black people to become compliant?
No, if that is all you do you will be non-compliant. The scorecard is broad based. This means you need to do other projects to do well on your scorecard.
What penalties do I have if I do not comply?
You will not get fined or go to jail if you do not comply. You simply run a risk of not getting the business you desire
Where can I register for BEE?
BEE does not have a registration process. You comply by producing a BBBEE Scorecard. The scorecard will allow you to earn points which in turn will help your customers calculate their own BEE scorecard. Once you have produced a scorecard you can advertise that rating. This may require a registration of a directory which will only happen after you have produced the BEE scorecard
How many points do I need?
As many as your customers need or more than your competition. It depends on your requirements, some industries will need a very high score while others may not even ever need a BEE scorecard. Also note that it takes times to get a good BEE Scorecard. We estimate that the current average score in the marketplace is less than 40 points.
I need a rating - what do I do?
The rating is the last step, if you have prepared all your documentation and have earned enough points to get to the level that you require then contact a rating agency - we are consultants, we can however refer you to a verification agency. If you are starting this process then you need to prepare first. Start with a training session, then prepare your own internal scorecard, earn your points, collect documentation and then start the verification process
How long does it take - I need this by Monday?
If you want a very quick scorecard, you can, but you will not earn any points on it. A scorecard can take some time to prepare. We suggest that you start with understanding BEE, then produce an internal scorecard
My Turnover is below R5 million per annum
You qualify as an Exempt Micro Enterprise - EME. EME's are exempt from BEE. What does this mean to you - EME's are automatically allocated a good BEE score. You will qualify as BEE compliant (minimum level 4) simply by having a turnover below R5 million. The proof for an EME is very simple, we can also assist EME's to draw up the correct documentation. If you are below R5 million our EME Pack will be ideal for your business.