Mbeki wants BEE Scrapped – EconoBEE Newsletter 25 June 2009

EconoBEE – Newsletter June 2009

Empower your Business

Know your Score

Know your Targets

Prepare for Verification

Attend EconoBEE’s BEE Verification Conference and equip your business with invaluable knowledge to prepare for a BEE Verification.

Early bird special ending soon: Book early and get EconoBEE V3 (worth R2500)

EconoBEE Training

Weekly half day BEE Workshop

9th,16th,23rd July 2009 – BEE Verification Conference

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

Contact us to arrange a specialised BEE course in your offices.

10 Simple Steps to Become BEE Compliant!

BEE is simple to implement when you have a complete understanding of how it affects your business.

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.

Rebuttal – Moeletsi Mbeki wants BEE Scrapped

I am most concerned about the reports that Moeletsi Mbeki wants BEE scrapped. The concern is not his opinion but that his comments show a complete lack of understanding of broad-based black economic empowerment (B-BBEE). His comments perpetuate the myth that white people must give their businesses to black people, that black people do not have to work for their living, that BEE encourages corruption, cronyism etc etc etc. While some of these ills may occur, it is wrong to blame B-BBEE for this.

In an interview with Reuters (af.reuters.com) he theatrically states that if he was elected president the first thing he would do is to scrap BEE. He conveniently forgets that B-BEE is one of many hundreds of government acts and regulations governing economic and social policy. Policies that regulate exchange control, money supply, policies requiring people and businesses to pay taxes, regulations around the environment, labour force, health, education. There are regulations that explain how tenders must be adjudicated and what monetary policies the reserve bank should follow. There are issues around how to finance and manage HIV/AIDS research and treatment. Somehow he regards the B-BBEE act as the “worst” act in the entire country and in need of the first and greatest remedial action of a new president.

Mbeki seems to think that B-BBEE is only about making certain black people wealthy.

The interview states:

“As part of a push to right the wrongs of apartheid and give blacks a stake of the economy, South Africa requires firms to meet quotas on black ownership, employment and procurement.”

This is so wrong. The B-BBEE act and the Codes of Good Practice do NOT require firms to meet quotas on black ownership, employment and procurement.

He lays out his visions for empowerment as follows:

“Mbeki argues that unless South Africa axes the policy in favour of a broader skills development drive, South Africa’s underclass, crammed into vast settlements of rickety shacks with no water or electricity, will balloon and eventually turn on the elite.”

He is correct in wanting to remedy these aspects, and why I personally support B-BBEE. This is EXACTLY what B-BBEE is all about. It is not about making the odd person a millionaire. The codes do not REQUIRE firms to meet any quotas. The codes specifically emphasize skills development, socio-economic development and enterprise development to help those people currently living in those shacks.

What Dr Mbeki and far too many people do not realize is that the B-BBEE act is not a punitive act. A private enterprise that neglects to implement B-BBEE will not be prosecuted. There is no legal penalty for not obtaining a scorecard. It is therefore incorrect for Dr Mbeki to describe B-BBEE as “REQUIRing firms to meet quotas”.

The only measurement of B-BBEE is via a…

Read More…

New Version Of EconoBEE Scorecard Software Launched

EconoBEE has released version 3 of its popular BEE scorecard software tool.

EconoBEE V3 boasts a number of improvements and features over the previous version:

  • It is an on-line system – allowing EconoBEE to better support clients and make instant updates available.

  • It requires users to answer a minimal number of questions, making it easy to use.

  • It produces an instant BEE scorecard calculation allowing companies to produce a fast and accurate BEE scorecard.

  • It emphasises the need to gather evidence in order to substantiate any score achieved, and helps a company prepare for a final verification.

Keith Levenstein, CEO of EconoBEE explained that becoming BEE compliant is a way of life in South African business. A BEE score equals business, but a good BEE score equals a lot more business. The only way to get a good BEE score is to understand BEE issues and to take various actions that will earn points. EconoBEE V3 helps with those calculations, but also helps businesses understand the codes so that they make the best decisions to maximize those points.

Prepare for BEE Verification




Time is quickly running out to secure your seat. Join us at the “Prepare for BEE Verification” conference in JHB, CPT and DBN.

9th July 2009 – JHB – Gallagher Estate – (early bird expired)
16th July 2009 – CPT – Belmont Conference Centre – (early bird deadline 25th June 09)
23rd July 2009 – DBN – Makaranga Garden Lodge – (early bird deadline 2nd July 09)

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

“Many people believe that they cannot become BEE compliant unless they sell shares in their business. This is not true. You can earn a high score by concentrating on the seven elements of BEE- ownership, management, employment equity, skills development, preferential procurement, enterprise development and socio-economic development.” comments Levenstein

It is far easier to earn a high score than many people realise. Scores depend on the size of the business – if a business has an annual turnover of between R5 and R35 million then it only needs to earn points on 4 of the 7 elements. Many of these businesses could achieve a good score of level 2 which will help them tremendously in doing business with large corporations.

All that is really necessary is to do the calculations and take some decisions in the business. EconoBEE V3 does most of the work for you.

Read full press release

Tourism and Hospitality in Black and White

Presented by Routledge Modise in association with Eversheds in conjunction with EconoBEE.

The tourism charter has now been gazetted as a sector code and must be followed by all members of the tourism and hospitality industry.

This includes hotels and bed and breakfasts, restaurants and conference organisers, travel agents and tour operators, amongst others.
The tourism charter has slightly different weighting and targets to the codes of good practice.

At the seminar, we will discuss in particular:

  • Latest trends in BEE and verification

  • Brief overview of the tourism sector code

  • How companies are affected by the charter

  • The tourism scorecards and how to comply.

Date: 7 July 2009
Time: 12h30-13h30

Venue: Auditorium – Routledge Modise in association with Eversheds,
22 Fredman Drive, Sandton

Speakers: Keith Levenstein – CEO, EconoBEE
Peter Kemp – Director, Routledge Modise in association with Eversheds

RSVP: Ashleigh Solomon – ashleighsolomon@eversheds.co.za by 30 June 2009

A finger lunch will be served after the presentation.
To watch a short video on the topic please click on www.youtube.com or download a brochure here.

Finding the competitive edge

Given the priority of staying as competitive as possible, companies need to exploit all existing opportunity channels. This requires a knowledge and understanding of possible environmental impacts on your business.

In the South African business environment, BEE compliance plays a significant role particularly to those companies dealing at a business-to-business level. Your clients will require you to produce evidence of your BEE compliance status, without which they will opt to do business with your rival.

How do you address this problem? One of the largest sources of competitiveness is a customer-needs driven approach. Identifying and satisfying your clients’ needs provides the necessary competitive edge. Therefore, getting the proper BEE documents is not a choice for those companies with such clients who require such evidence. In such a scenario, a company’s competitiveness is based to an extent on its BEE score.

Therefore, how competitive is your business without evidence of its BEE status, in a market where such evidence is held with high regard?



Do your customers want your BEE Certificate or Verification? What are you going to do – click here to find out?

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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