BEE CONSULTANTS
Organise your BEE affairs with the NABC
Wed, 25 Aug 2010
“The complexity of the BEE codes makes it impractical, if not impossible, for most small and medium sized businesses to organise their own BEE affairs. It is clear that this is an area where the services of consultants are really needed,” says NABC’s chairperson Dionne Kerr.

Why does my company need to go through the BEE Verification process?

Are there currently any accredited BEE Verification agencies?

If I receive a BEE Verification certificate from an agency, how do I know that my certificate will still be valid after the accreditation process?

What is the status of the accreditation process with SANAS?

Why should I use a BEE Verification Agency that is a member of ABVA?

What is the difference between a Full and an Associate member of ABVA?

How does ABVA regulate the behaviour of its members, and what recourse do I have?

What role does ABVA play in the BEE Verification industry, and does ABVA work closely with SANAS?

Ask your questions here

BEE
ABVA elects new board
Wed, 25 Aug 2010
The new Association of BEE Verification Agencies board reflects the diversity of the organisation as well as the immense expertise in BEE and BEE verification found amongst the membership.

BROAD-BASED BEE
BEE verification can succeed
Thu, 22 Jul 2010
There is a lack of capacity in the BEE verification system, explains EconoBEE CEO Keith Levenstein. However the 'can do' attitude that helped South Africa succeed in hosting the World Cup, will also allow us to defeat the challenges we face in transformation and empowerment, believes Levenstein.

B-BBEE
Do more for B-BBEE urges Motlanthe
Fri, 18 Jun 2010
More needs to be done to address the lagging of Broad-Based Black Economic Empowerment (B-BBEE) in the metals and engineering industry, says Deputy President Kgalema Motlanthe.

BEE STRATEGY
Govt to review BEE strategy
Wed, 26 May 2010
Black economic empowerment strategy needs to be reviewed, says Trade and Industry Minister Rob Davies. "We need to ensure that we are developing real productive capacity in those who were excluded from the economy". Minister Davies said the dti has noted that although BEE’s success has been modest, there is a need to review BEE strategy.

BEE
BEE progress not enough-Zuma
Sun, 23 May 2010
President Jacob Zuma asks the Black Economic Empowerment Advisory Council to advise government on how to ensure faster progress in advancing black economic empowerment.

BEE CODES
Interpreting the Codes: Best Practice in BEE Verification
Wed, 03 Mar 2010
The Association of BEE Verification Agencies (ABVA) clarifies some issues regarding the on-going interpretation of the BEE codes. ABVA ensures that a consistent application of the codes is practiced in the market place.

ECONOBEE
A Julius Dilemma - Tenderpreneur or True Empowerment
Wed, 03 Mar 2010
Most people I know agree that proper transformation is necessary in South Africa. We still have a long way to go to improve the situation for our population. The playing fields are still not level, argues Keith Levenstein.

INTEGR8 GROUP
Integr8 Group one of country’s top empowered companies
Wed, 10 Feb 2010
The Integr8 Group, South Africa’s largest privately owned national BEE ICT network integration and infrastructure management specialist, has achieved industry wide recognition with accreditation as one of the country’s leading Top empowered companies by Impumelelo research and the University of Cape Town.

WEIGHTED ELEMENTS ON THE SCORECARD
* Ownership - 20%
* Management Control- 10%
* Employment Equity - 15%
* Skills Development - 15%
* Preferential Procurement - 20%
* Enterprise Development - 15%
* Socio-Economic Development - 5%

What is BEE?

B-BBEE is Broad based Black Economic Empowerment, which is a policy designed by the South African government encouraging companies to transform the country. In a nutshell, it’s about broad-based economic activities that benefit historically disadvantaged black South Africans.

Compliance with BEE is measured by means of a scorecard – and even if your company does not reach a high level of points – it’s a good thing. Your company is measured out of a maximum of 100 points, and by gaining even a small number of points, it means you’re helping previously underprivileged people participate in the economy.

Verification is due before August 2009, and businesses are encouraged to complete their BEE scorecards prior to that date. Verification agencies will assess and validate a company’s BEE score based on the principles of the Broad-Based BEE Codes of Good Practice. The Codes of Good Practice is a document that describes how the scorecard works.

The elements on which your company is rated is what makes BEE broad-based. It covers various aspects of the economy, society and the company. They include,

1. Ownership: this measures the percentage of shares in the business that are black-owned.
2. Management: you score points according to how many directors and top management in your company are black. The points are divided on a gender basis
3. Employment Equity: this is a breakdown of your employees that are black; this includes junior, middle, senior management and disabled black employees
4. Skills Development: this measures the amount of money spent on training black employees
5. Procurement: you score points according to what equity scores your suppliers possess
6. Enterprise Development: the amount you spend on helping other black owned enterprises
7. Socio-economic Development: you earn points depending on how much you spend assisting charitable organisations

The above elements are again broken down into percentages which differ depending on how much your business earns. If your annual turnover is less than R5 million, you are an Exempt Micro Enterprise (EME) and you can apply for a scorecard (automatic 65-75 points/ Level 4) simply by sending an EME Exemption Statement to a verification agency.

If your annual turnover is between R5 million and R35 million, your company is a Qualifying Small Enterprise, and you’ll need to complete a scorecard by selecting 4 of the 7 elements that suit your business best (once you get down to it, they’ll be easy to recognise).

If you annual turnover is larger than R35 million per annum, you’re a Generic company, and you’ll need to comply with all 7 elements of the BEE scorecard.

Q.) Do I need to sell all my shares to black people to become compliant?
A.) No, if that is all you do, you will not become compliant. The scorecard is broad-based so that it can encompass a large number of different companies participating in our economy. This means you need to pursue other projects to do well in your scorecard.

Q.) Will I go to jail if I don’t get a scorecard?
A.) No, there are no penalties for non-compliance. B-BEE is more a prescriptive Act in the constitution than a policy. By not getting a scorecard, you simply run the risk of not getting the business you desire.

B-BEE is based on a cascading principle, in that one company will ask another for their scorecard, until all companies have a BEE scorecard of their own.

Q.) How long does it take – I need this by Friday?
A.)If you want a scorecard very quickly, you can produce one, but you will probably not earn many points on it. A scorecard can take some time to prepare. Start with understanding BEE, then produce an internal scorecard. The idea is to get a score, and to improve it over time.