Why ask your suppliers for a BEE certificate? – EconoBEE Newsletter – 04 June 2013

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EconoBEE - BEE Points = Business

Dear [Name]

Why you need to ask your suppliers for a good BEE certificate

You can earn 20-25 points on your scorecard just by getting a good valid BEE certificate from each of your suppliers. Each supplier, no matter how small, can make a contribution to your own procurement score. The higher the score, or better level, the more points you could earn. A supplier giving a letter stating they are becoming compliant, or supplying a non-compliant certificate does not do anything to earning you more points on your scorecard.

One supplier gave us a letter dated May 2011 confirming that they would become compliant within three months. Each year they issued the same letter. When queried they admitted they had no intention of becoming compliant, and simply issued the same letter with the hope that their valuable customer would go away! They now stand the chance of losing the customer, not only because they have no certificate, but because they lied about their intentions of becoming compliant.

The risk of using an invalid certificate.
We are often asked why we are so concerned about invalid certificates.

The first reason is breaking the trust relationship: If your supplier, who  earns a lot of money from you each month, can lie or cheat about his BEE certificate, then can you really trust the products or services that he supplies to you? It becomes an ethical problem – if the supplier has no concerns about breaking one law or regulation, will he have any concerns about any other laws, or delivering an inferior product or service to you?

The second reason is if you use that invalid certificate, you too could be blamed for issuing your own invalid certificate that is based on an invalid, or even fraudulent certificate. It becomes a serious reputational risk to any company if they simply accept any certificate. Obviously it is difficult if not impossible for any company to check for example 5000 certificates from suppliers, but some effort must be made to reduce the risk of invalid certificates slipping through the cracks. No company wants to be accused of fronting, and using an invalid certificate to earn points. Even unknowingly this will still be defined as fronting in terms of the about to be finalized B-BBEE Amendment Bill.
In any event an invalid certificate will not earn points, and may also harm your own BEE status.

Some of the checks we do:

  1. If the company is a generic or QSE, the certificate must be issued by a SANAS accredited agency, or IRBA approved auditor.
  2. If it is an EME check that the auditor’s or accounting officer’s wording is correct.
  3. If a QSE or EME check that the company fits into that category and is not a generic. This is sometimes difficult, but if we know how much our client spends with the supplier, it can give an indication. If they spend R4.8 million with a supplier, then it is unlikely that the supplier is an EME – under R5 million.
  4. Check that the certificate correctly follows a sector code if gazetted.
  5. Compare to previous certificates for anomalies.
  6. Analyse the scorecard and report for fronting indicators.

EconoBEE’s BEE Procured managed service is the perfect solution. Our consultants have access to thousands of BEE certificates. If they don’t have the certificate then our call centre will phone on your behalf. In addition we will help you strategise as to how to earn the most points, which suppliers are hurting you and better yet which ones are helping you become successful. In the end the time consuming and frustrating task of collecting BEE certificates becomes a strength for your business.


 

Skills Development – Mentoring is key to training success

Skills development is worth 15 points on the generic scorecard, and is expected to be higher in the future. It consists of training of staff. Both your value of spend as well as the number of people being trained on the right categories of training is taken into account. An important aspect to take into account is to achieve success with the employees being trained. It will be a waste of money to train someone who ends up failing their exams! You need to ensure that the employee is suitably mentored and assisted to ensure their success, despite the difficult circumstances that many employees face when attending training.

Who really wants to write exams many years after finishing matric? Who enjoys the studying that goes with various diploma/degree courses? Many of us disliked university or colleges and were only too keen to start working. Now, we are sending our staff back to study to earn BEE points. It will not always work! Employees need additional assistance – mentoring and support during their learnerships and studying.


EconoBEE Partnership

EconoBEE is one of the most successful and respected BEE consultancies. In order to grow our business we are looking to partner with businesses/people who would also like to participate in this rewarding and successful industry. If you want to run your own independent business, with the support of EconoBEE, and have ready finance to invest in your future, please contact Keith on 011 483 1190 or keith@econobee.co.za. Opportunities are available in all major cities and regions.


Let our consultants save you time on B-BBEE.

Preferential Procurement – Save Time by using the BEE Procured database containing over 30 000 BEE Certificates.
Procurement Managed Service: Our consultants can phone your suppliers for a BEE certificate – Managed Service.

 


 

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While there is demand for a B-BBEE Scorecard someone will be taking advantage, shouldn’t that someone be you…


Want us to manage your BEE Process – Managed Service.

Turnover below R5 million – find out how to get your BEE Exemption.

Is BEE procurement a pain? Sort it out quick and easy – BEE Procured.

Need a scorecard – produce one yourself – EconoBEE V3.

EconoBEE Newsletter
4 June 2013

In this issue

    • Why you need to ask your suppliers for a good BEE certificate
    • Skills Development – Mentoring is key to training success
    • EconoBEE Partnership

In other news

About EconoBEE

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.

Our services include BEE Management Systems, Training, EME Pack, Complete Managed Services; consulting and advisory and Procurement Solutions.

As leaders in the industry we are driven to help maintain and develop knowledge in the BEE industry.


Already have a BEE Certificate?

Please send it to us and we will include it in our BEE Procured database.


Contact Us

Tel: 011 483 1190
Fax: 011 483 1195
Email: info@econobee.co.za
Web: www.econobee.co.za


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Remember
BEE Points = Happy Customers = Sustainable Business


Regards
Gavin and the EconoBEE Team

Executive summary of B-BBEE

Turnover below R5 million per annum – automatic BEE status

 

Turnover above R5 million per annum – you need a BEE Scorecard. Our workshops, scorecard tools, procurement manager or a complete managed services will be best for you.

Your time on your business, our time on your BEE status

Tip:

Through our managed service avoid the BEE distraction and let our consultants implement Broad-Based Black Economic Empowerment for you.

10 Strategic Steps to B-BBEE!

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.

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