http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.35Change: -0.11
R/$ = 10.72Change: -0.11
Au 1287.13 $/ozChange: -8.07
Pt 1471.50 $/ozChange: -6.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 27, 2012

Revised codes to accelerate BEE implementation – Davies

Back
Engineering|Mindwalk|Anthony Hartman|Rob Davies|Tony Balshaw
Engineering||
engineering|mindwalk|anthony-hartman|rob-davies|tony-balshaw
© Reuse this



The revised broad-based black economic-empowerment (BBBEE) codes, which Cabinet last week approved, would accelerate the implementation of BEE and broaden the effects of empowerment, Trade and Industry Minister Dr Rob Davies said on Monday as he outlined the key areas of refinement.

The revised BBBEE codes, which would be open for a 60-day comment period once officially gazetted, reduced the generic scorecard to five elements, with employment equity and management control being consolidated, and preferential procurement and enterprise development merged to form a supplier development element.

The points for ownership have also been broadened to include designated groups in the main points, while thresholds for exempted micro enterprises and qualifying small enterprises have been adjusted. All companies, except exempted micro enterprises, would be required to comply with the five elements of the BBBEE scorecard.

The revision would also see the introduction of priority elements: ownership, skills development and supplier development. Large enterprises had to comply with all three priority elements. The priority scores of entities that did not comply with sub-minimum requirements in each priority would be discounted.

Entities that were 100% black-owned would qualify as Level 1 and entities that were more than 50% black-owned would qualify as Level 2.

The revised codes also updated the framework for the accreditation of BBBEE verification agencies to include the Independent Regulatory Body of Auditors.

Grant Thornton head of BEE verification Tony Balshaw told Engineering News Online that the intention to revise the codes raised some concerns. “The codes are supposed to have a shelf life of ten years, and then it should have a substantial review. But is this still needed?

“It seems politically expedient to change the codes and to rectify certain things in the codes, when the technical problems have not been addressed. There are about 100 errors in the original codes,” he said.

Balshaw applauded the fact that some of these errors seemed to be corrected in the revised codes. “However, the government is moving the goal posts as well, by [proposing the] rolling up of management control and employment equity into one score. My view is that the technical errors and imperfections should be ironed out first, before changes are made to the codes,” he noted.

Verification agency Mindwalk CEO Anthony Hartman said the amendments of the codes might hold more complications for agencies.

“Because the whole process of BBBEE is voluntary, people are going to be more reluctant to submit themselves to processes which are too complicated. Ultimately, this hinders the overall aims which is transformation and change,” he noted.
 

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Economy News
Updated 1 hour 17 minutes ago The National Employers' Association of South Africa (Neasa) members will continue their lock-out of workers who participated in the recent metal industry protest, despite threats, it said on Thursday. The association was adamant the decision by its members to...
Updated 1 hour 25 minutes ago South Africa's trade deficit narrowed more than expected to R190-million ($18-million) in June from a revised R7.44-billion shortfall in May, data from the South African Revenue Service showed on Thursday. Economists polled by Reuters had forecast a trade gap of...
Minister Malusi Gigaba
Updated 7 hours ago The home affairs department will not relax onerous new immigration rules but will fast-track visa centres and biometric-data capturing systems to reduce upheaval, Minister Malusi Gigaba said on Wednesday. Gigaba said spending R5-million on installing biometric...
More
 
 
Latest News
Updated 4 minutes ago Two new proposed changes to South Africa’s Income Tax Act, coming into effect in April 2015, would significantly enhance the attractiveness of the tax incentives available to venture capital investors and stimulate greater levels of investment into small and...
Updated 1 hour 16 minutes ago The National Employers' Association of South Africa (Neasa) members will continue their lock-out of workers who participated in the recent metal industry protest, despite threats, it said on Thursday. The association was adamant the decision by its members to...
Updated 1 hour 24 minutes ago South Africa's trade deficit narrowed more than expected to R190-million ($18-million) in June from a revised R7.44-billion shortfall in May, data from the South African Revenue Service showed on Thursday. Economists polled by Reuters had forecast a trade gap of...
More
 
 
Recent Research Reports
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
 
 
 
 
 
This Week's Magazine
Multinational semiconductor chipmaker corporation Intel announced its national campaign to further acquire partners to drive its She Will Connect programme, an initiative that aims to expand digital literacy skills to young women in developing countries, further into...
South Africa's MeerKAT radio telescope array programme should get back on schedule within a few months. This assurance has been given by SKA South Africa (SKA SA) associate director: science and technology Prof Justin Jonas. Early last month, Science and Technology...
The Passenger Rail Agency of South Africa’s (PRASA’s) Metrorail service will remain a subsidised service following its current multibillion-rand rolling stock, station, depot and signalling upgrade programme. PRASA group CEO Lucky Montana has allayed fears that...
GARYN RAPSON Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will open the door for court battles to determine who will be held liable for the remediation
The uncertainties around the remediation of affected areas as addressed in the Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will possibly spark litigation and disputes between landowners and businesses, contractors...
South Africa is currently the largest component of the African Development Bank’s (AfDB’s) active portfolio in Southern Africa, comprising 62.5% of the bank’s $7.9-billion exposure to the 12-country region – the second largest beneficiary is Mauritius, which...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks