Aug 27, 2012
Revised codes to accelerate BEE implementation – DaviesBack
Engineering|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 (150 word limit)
Updated 13 minutes ago Power utility Eskom has implemented regular power cuts this year to prevent the national grid being overwhelmed, as South Africa faces its worst energy crisis in decades, Public Enterprise Minister Lynne Brown said earlier this week, adding that power outages cost...
Updated 28 minutes ago The Vans division of Mercedes-Benz will launch a midsize pickup before the end of the decade, the German manufacturer announced on Friday. “The Mercedes-Benz pickup will contribute nicely to our global growth targets,” says Dr Dieter Zetsche, chairperson of the...
Updated 1 hour 7 minutes ago JSE-listed Delta Properties received bids of about R523-million for the bookbuild it launched on Tuesday. The company had set out to raise R400-million and accepted bids of R503-million.
Recent Research Reports
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
This Week's Magazine
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments. In many urban and rural municipalities, the state of infrastructure has been...