The revised codes will enhance the implementation of the B-BBEE in a meaningful and sustainable manner. The revised codes also contain principles and guidelines that will facilitate and accelerate the implementation of B-BBEE. The purpose of the codes is to assist and advise both the public and private sectors in their implementation of the B-BBEE Act.
Key areas of refinement include:
• The generic scorecard has been reduced to five elements with Employment Equity and Management Control being consolidated, and Preferential Procurement and Enterprise Development merged to form a Supplier Development Element. * As expected
• The points for ownership have been broadened to include designated groups in the main points. * As expected, this means that points will now be awarded to Designated Groups for holding Voting Rights and being entitled to Economic Interest. Whether this means a reduction of points in other indicators of the Ownership element in favour of this or if these points are given at the loss of another element is not clear.
• Thresholds for Exempted Micro Enterprises and Qualifying Small Enterprises (QSE) have been adjusted. * As expected and in line with good governance
• All companies, except Exempted Micro Enterprises, will be required to comply with the five elements of the B-BBEE scorecard. * As expected and in line with the spirit of BBBEE. Note though that QSE’s have different, less onerous indicators than the Generic scorecard at present so it remains to be seen if the indicators remain the same or not!
• Revised qualification points for awarding of B-BBEE recognition levels status. * As expected
• The introduction of priority elements: Ownership, Skills Development and Supplier Development, and large enterprises to comply with all three priority elements. The priority scores of entities that do not comply with sub-minimum requirements in each priority will be discounted. * As expected, in substance – it remains to be seen if this will be an effective driver to comply
• Entities that are 100% black-owned will qualify as Level 1;. * Not expected – Seems to be inconsistent with the principles of BBBEE being “Broad Based”. This is even worse than Narrow Based as we had in the past. Did someone forget that there was a reason Broad Based was introduced….Can you say “Tenderpreneur” !!
• Entities that are more than 50% black-owned will qualify as Level 2. * See comment above
• Updated framework for the accreditation of B-BBEE Verification Agencies to include the Independent Regulatory Body of Auditors. * As expected
• Alignment of the B-BBEE Employment Equity elements with the Employment Equity Act. * As expected, and about time!
• Skills Development Elements has been aligned to the New Skills Development Strategy and to be outward focused. * As expected
So all in all the above is as expected, however, a notable omission in this press release is any discussion with regard to the targets being split between African, Indian and Coloured people…Lets hope that sense has prevailed and that Black remains Black!