|Minister wants changes to B-BBEE Act|
The Minister of Trade and Industry has reaffirmed the department’s decision to amend the B-BBEE Act including the Codes of Good Practice. In a speech before the Easter public holidays he mentioned some salient changes which will undoubtedly speed up transformation and broaden its reach to those people who it was designed to assist.
Despite the announcement by the Minister we had already published some of the changes we anticipated would be included in the amendments. Gazing into the crystal ball it turns out we were not far off.
At the heart of B-BBEE has always been the scorecard – a method of calculating levels of compliance.
The implementation of the B-BBEE act and its codes has been quite poor – only due to government choosing not to follow the B-BBEE act’s principles. Mining licenses are awarded based on a conflicting act. Tenders are awarded based not on B-BBEE principles, but using the PPPFA. This is what perpetuates the confusion between the different acts. Sure, we need to fix up many aspects of our country and the law – but the first around empowerment should be the conflicting acts.
I suspect that in July (as stated in the Ministers announcement) the government will make the required changes to the PPPFA (which is the domain of the Dept of Treasury not dti), and also make some minor tweaks to the B-BBEE act, and use this to try to kickstart the whole process again. The actual changes to the codes themselves, definitions, weightings etc will take far longer.
Lets look at some of the great positive benefits you can expect out of the changes to the B-BBEE Codes.
How changes to BEE Legislation will benefit you!
The overwhelming concept is that BEE must benefit more black people. This will mean more emphasis will be placed on initiatives that are genuine and result in the economy growing. The elements that will gain most from this will be – Skills Development, Enterprise Development and Socio-economic Development.
However the biggest and most significant benefit for business will be the additional government business gained based on a good BEE status. This will result from changes to the government procurement act (PPPFA) and will award tenders based on a good BEE Scorecard and not an Ownership status. This is perfectly aligned with the sentiment that BEE is not about Ownership but rather empowerment.
Less emphasis on the Ownership element and more emphasis on achieving a good BEE Scorecard will help those companies who have already received a good BEE Status and encourage those who are yet to get a scorecard to start working on one. Most importantly this change will mean business can focus on their core work without any of their customers demanding a change of ownership.
All government departments, corporates and big business will be consistent in their measure of empowerment. Each one will follow the same principles in exactly the same way resulting in absolute confidence that what you have done results in the same result every time.
Using hindsight we look back at an article we wrote in 2006 – Why the slow pace of BEE Implementation. In this article we highlighted many of the issues that we still face today. However the good news is some of the more important issues can be ticked off the list.
We are looking forward to the changes as we know they will move transformation one small step further forward. The changes will see business grow, benefit employees, increase profits and encourage a whole new level of service delivery.
Running out of Time? We will call your suppliers, calculate your BEE Scorecard, prepare policies, procedures, evidence and offer advice to improve your score.
Get a compliant score – EconoBEE managed service is the answer. Contact us on 011 483 1190 or email@example.com.
|Prepare for your BEE Verification |
Arguing with your verification agency? Spending hours collecting the wrong documentation? Unsure of what is needed?
We are pleased to announce another exciting EconoBEE initiative to help assist you understand and implement Broad-Based Black Economic Empowerment. Prepare for BEE Verification conference – we will help you get the best possible score out of your BEE Verification. We will show you how to prepare for the verification so you are not looking for last minute documents or collecting the wrong documents. Coach you on the processes, procedures and methodologies verification agencies use so that when you are asked questions about your BEE status you are not unpleasantly surprised.
Contact us on 011 483 1190 or firstname.lastname@example.org to find out more about our Prepare for BEE Verification Conference.
BEE Managed Services Saves Time Save time and effort with EconoBEE, Experts in BEE Compliance and scorecard optimisation. EconoBEE’s managed service will handle all of your BEE requirements, collect supplier certificates and prepare all the correct documentation. Contact us on 011 483 1190 or email@example.com.
|BEE Crash Course – Phase 1|
Become a fan of EconoBEE on Facebook and be first to download EconoBEE’s Crash Course guides – “The 5 minute comprehensive guide to Black Economic Empowerment”. Phase 1 goes live today and for a limited time only.
You would expect to pay thousands of rands in consulting fees to gain the knowledge contained in just one crash course guide but for a limited time offer we will offer this set to you for R999 incl VAT.
However if you connect with us on our EconoBEE Facebook fan page we will give you access to all of the documents costing you absolutely nothing. Simply login to facebook and become a fan of EconoBEE and we will post a link for you to download every one of the documents. You save and gain the most amazing amount of BEE knowledge. Click here and get started – its so easy.
PS Don’t forget to tell your colleagues and friends so that they can also take advantage of this special offer.
Expert Advice pays for itself Save time and effort by allowing EconoBEE, Experts in BEE Compliance and scorecard optimisation handle all of your BEE requirements. Contact us on 011 483 1190 or firstname.lastname@example.org.
While there is demand for a B-BBEE Scorecard someone will be taking advantage, shouldn’t that someone be you…
4 May 2011
In this issue
- Minister wants changes to B-BBEE Act
- Prepare for BEE Verification
- BEE Crash Course – Phase 1
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