Aug 27, 2012
Revised codes to accelerate BEE implementation – DaviesBack
Mindwalk|Anthony Hartman|Rob Davies|Tony Balshaw
© Reuse this
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
Other Economy News
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
This Week's Magazine
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...