Cenfed Blog

The Blog of Cenfed BBBEE Verification Agency. For all things regarding BBBEE Certificates, BBBEE Verification and BBBEE codes.

Should I be BBBEE Compliant?

Before requesting a BBBEE Verification we should always follow the 5 rules of an astute business man: What’s In It For Me This meaning you have to analyse the value of a BBBEE Verification Certificate to ensure the Certificate will add value to your company. Should I be BBBEE Compliant? If a certificate does not add value to your company it does not make business sense to have the verification done. Some companies are embarking on the BBBEE Verification process for

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“Employees trust” the answer to BBBEE Ownership

What is required by the BBBEE act in the “Ownership” element? “BBBEE Ownership Scheme” means a collective ownership scheme constituted with the view to facilitating the participation of specified natural persons in the benefits flowing from the ownership by that scheme or by its fiduciaries of an Equity Interest. Key Measurement Principles An Enterprise may be awarded points for the participation of black people in the Economic Interest or Exercisable Voting Rights of the Enterprise, in accordance with the ownership scorecard

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Why it is important for your business to have a BEE certificate?

A BEE Certificate has been most helpful as past successes do prove. Wits Business School Journal had a look at the success the original BEE strategy had in a number of companies focusing on companies that engaged in a transformative strategy to business and one such company was Old Mutual. The company has grown from strength to strength in its strategy to implement BEE and follow the protocol. Why it is important for your business to have a BEE certificate Old

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Old BBBEE codes vs New BBBEE codes

The Broad Based Black Economic Empowerment (BBBEE) Act, gazetted in 2007, will be used on all financial periods ending before 1 May 2015. If your financial period should end after 1 May 2015, the new gazetted BBBEE Verification codes must be used. This means that a white owned company can still qualify as a level 1 company if all the elements of the old codes were correctly implemented.  It is possible for companies that are only using the 2013 financials now

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BBBEE might be more dangerous than you think

Numerous companies are searching for methods of becoming BEE compliant due to the emphasis of the new BBBEE codes on ownership. Methods’ being used does not include handing out or selling shares, or losing control of their enterprises. This undoubtedly leads to fronting with serious consequences. BBBEE might be more dangerous than you think. The DTI BEE strategy Document defines ownership of black people as follows: “The process of BEE must result in an increase in the ownership and control of

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Why amended BBBEE Codes of Good Practice are causing quite a stir

There has been a huge amount of interest generated by the DTI with the Amended BBBEE Codes of Good Practice. In October 2013 it is estimated that as many as three thousand people attended the presentations and we were graced with the presence of President Jacob Zuma and two other ministers who were honourary speakers at the event. BBBEE has become the standard way in which we do business in South Africa. It has been noted that the Amended BBBEE

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DTI BEE: Not an affair with a tall dark stranger

On 11th October 2013 DTI Minister Rob Davies gazetted the new DTI BEE codes. The DTI has tasked everyone to action these new codes within a year. DTI BEE: Not an affair with a tall dark stranger. The new DTI BEE plan still aligns to the same indicators as before. 1. Implementation of the DTI BEE plan is action-based Implementing the DTI BEE codes for the first time has proven to be overwhelming and intimidating, but there are ways to

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Will the amended BBBEE act create development and upliftment for poor?

It has been said and proven that one inequality cannot be rectified by another. With the introduction of the policy of Broad Based Black Economic Empowerment in 2007, replacing the first ideology of narrow-based Empowerment, based exclusively on black ownership, most small to medium companies in South Africa relished the idea of correcting the disastrous effects of the previous apartheid based dispensation, knowing that a business entity can become BEE compliant without giving up shares in their mostly private or family

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How will the “REVISED BBBEE CODES” affect your outcome?

Most businesses surveyed expect BEE levels to decrease. The new Broad Based Black Economic Empowerment (B-BBEE) Codes were published for comment in October 2012. A large survey was then conducted to establish what the opinion of companies was towards it. Revised BBBEE Codes More than 90% of companies that participated in the survey believe that the implementation of the revised B-BBEE codes will have a detrimental effect on their current rating level. The DTI on the other hand expect the revised codes

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BEE Bill vs Revised BBBEE Codes and preparing for verification

The B-BBEE Amendment Bill has been passed in parliament. It now goes to the Council of Provinces before the President signs it into law. As with any new legislation, it must be tested in a court of law, but there are aspects of the bill that we want to make you aware of. The bill provides penalties for fronting: up to 10 years in jail and 10% of a company’s turnover. Fronting is defined as: ‘Fronting Bractice’ means a transaction, arrangement

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Client Testimonial

"I would like to thank all the staff at Cenfed/Chamberlink for their professional and friendly service.

We have dealt with numerous BEE verification agencies and have found that Cenfed has a proper procedure that they stick to. We have never experienced the BEE verification process in this manner before and have come to the realisation that Cenfed are doing it correctly.

Thank you for your patience and advice and the wonderful manner in which Yolandi Storm conducted herself with the on site audit.

We would recommend Cenfed to anyone in need of assistance with their BEE verification."

Monique Beets - Accounting Clerk
TMF Construction & Electrical CC