virtually not stopped talking about this, which makes me think – as a consultant I understand the impact of the amended codes but does the general public?
A few years back the treasury used an act called the PPPFA – Preferential Procurement Policy Framework Act which governed all tenders of a certain value. More recently that act was changed to fully incorporate B-BBEE levels. This meant that without a good B-BBEE level (ownership was no longer a requirement) you were unable to win tenders. On the other hand though, a good B-BBEE Level ensured that you more regularly won tenders.
Black businesses started losing significant amounts of tenders because their B-BBEE score was not as good and Ownership was no longer a requirement. In-part as a result of this the DTI needed to change the B-BBEE scorecard to place greater emphasis on Ownership but without leaving out other important elements like Skills Development or Enterprise Development.
The result was the Amended Codes. The Amended Codes have such significant changes that a company who previously achieved a level 4 on the generic scorecard could drop to a level 8 or even be non-compliant. Worse though, an unprepared QSE who had previously achieved a level 1 score could become non-compliant when using the Amended Codes.
The mechanism for encouraging businesses to produce a scorecard is business – without a good score it will be much harder to find new customers and virtually impossible to win government tenders.