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 the sake of having a BEE certificate.  Why spend the money it the certificate will not contribute to your bottom line?

It is a fact, your certificate, or the lack of one, will cause a ripple effect in the industry and if you are not BBBEE Verified it will influence your customers BEE certificate, the same as your non-compliant supplier will influence your BBBEE Certificate, should you require one.

What value will a compliant supplier attribute to your company’s Preferential Procurement Points?

Old Codes

Level 1 > 100 Points 135% Recognition for every rand spent
Level 2 > 85 < 100 Points 125% Recognition for every rand spent
Level 3 > 75 < 85 Points 110% Recognition for every rand spent
Level 4 > 65 < 75 Points 100% Recognition for every rand spent
Level 5 > 55 < 65 Points 80% Recognition for every rand spent
Level 6 > 45 < 55 Points 60% Recognition for every rand spent
Level 7 > 40 < 45 Points 50% Recognition for every rand spent
Level 8 > 40 < 30 Points 10% Recognition for every rand spent

 

New Codes

Level 1 > 100 Points 135% Recognition for every rand spent
Level 2 > 95 < 100 Points 125% Recognition for every rand spent
Level 3 > 90 < 95 Points 110% Recognition for every rand spent
Level 4 > 80 < 90 Points 100% Recognition for every rand spent
Level 5 > 75 < 80Points 80% Recognition for every rand spent
Level 6 > 70 < 75 Points 60% Recognition for every rand spent
Level 7 > 55 < 70 Points 50% Recognition for every rand spent
Level 8 > 40 < 55 Points 10% Recognition for every rand spent

By analysing this it will make business sense ensuring that the money spend under the preferential procurement element is maximized. Meaning that if you do your procurement correctly, the verifying agency will be able to maximize your points under procurement and you won’t risk having to spend additional or unnecessary funds on other elements.

This does not mean all your suppliers must be BBBEE compliant or just Verified; by ensuring you have BEE certificates in various levels of your supply chain, will assist your supplier-entity’s that are non-compliant or not BBBEE Verified. Thus, you can still do business with your loyal and preferred suppliers that offers the best product, prices and services, again let good business-decisions be your guide.

Please rest assured that Cenfed BBBEE verification agency will always advice you correctly to BEE or not to BEE.

Ultimate National Guide for Broad Based Black Economic Empowerment

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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