Cenfed Blog

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

What Is The Law Regarding Access To Information?

The right of access to information is entrenched in the South African Constitution, and supported by the Promotion of Access to Information Act (PAIA), No. 2 of 2000. These far-reaching laws have been put in place to ensure that we do not repeat the mistakes of the past, where secrecy was commonplace and citizens were kept in the dark. While PAIA may not be perfect, it does open up access to the records of both public and private bodies –

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What Qualifies an Entity as an “Empowering Supplier”?

The revisions to the BEE Codes of Good Practice in 2015 had serious ramifications for businesses across all sectors in South Africa. Among the biggest changes was the amendment to the preferential procurement section of the BEE scorecard. Where previously entities had earned points for doing business with value-adding suppliers that had good BEE ratings themselves, suddenly the bar was higher, and they were required to engage with “Empowering Suppliers” in order to get points. This proved challenging for many

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How Does The Modern South African Government “Punish” Dissent?

“Political dissent refers to any expression designed to convey dissatisfaction with or opposition to the policies of a governing body. Such expression may take forms from vocal disagreement to civil disobedience to the use of violence. Historically, repressive governments have sought to punish political dissent”. The above-mentioned definition of political dissent as per Wikipedia ironically refers to “Historically” repressive governments that “punish” dissent, for instance the old apartheid government. How does the modern South African government “Punish” dissent? The same method as

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How Long Will BEE Remain Government Policy?

Broad-Based Black Economic Empowerment (BBBEE, also known as BEE) is still a controversial subject in South Africa more than a decade after its official inclusion in the country’s legislative framework. There is a large amount of misunderstanding and resistance to BEE,  as well as frequent accusations that the policy in its current form is ineffective, benefitting only a small part of society. There are even calls for BEE to be scrapped entirely. But BEE isn’t going anywhere; it’s here to

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What is the Relationship Between the BEE Act and the EE Act?

In South Africa, Broad-Based Black Economic Empowerment (BBBEE, or BEE as it is more commonly known) is a complex system of rules and guidelines designed to effect socio-economic transformation by levelling the playing field for people of all races. While the major legislation involved is the Broad-Based Black Economic Empowerment Act, No.53 of 2003 as supplemented by the Codes of Good Practice, it is supported by and intertwined with other laws. One key example is the Employment Equity Act, No.

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What is the Objective of the BBBEE Act?

It has been 13 years since the Broad-Based Black Economic Empowerment (BBBEE) Act came into effect in South Africa, but many business owners – and their employees – remain unclear on what exactly the legislation is for, and unaware of the transformative potential it has when effectively applied. In this article, we focus on the intent and effect of the BBBEE Act to promote a more comprehensive understanding of what it is actually about. The BBBEE Act, No.53 of 2003

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How has Preferential Procurement Changed Under the Revised Codes of Good Practice?

Preferential procurement has always been a key component of the Broad-Based Black Economic Empowerment (BBBEE, or BEE) scorecard. It has long been promoted to enterprises as one of the major benefits of having a good BBBEE score, as it opens up potential trade opportunities with other companies seeking to boost their own scores. Gaining preferential procurement points serves as an incentive to support BBBEE-certified suppliers, thereby playing an important role in driving transformation across all levels of the South African

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What is Fronting and What are the Implications?

In discussions about Broad-Based Black Economic Empowerment (BBBEE), the term “fronting” often comes up. This underhanded practice is making headlines in news about the progress of BBBEE, as a large number of businesses have been found guilty of it. But what exactly is fronting, and what are the implications? In this post, we delve into the subject to give you a better understanding. A good BBBEE rating can confer many benefits on a company operating in South Africa. These include

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Who Accredits BBBEE Verification Agencies?

A large number of verification agencies exist in South Africa to assist business owners with obtaining their Broad-Based Black Economic Empowerment (BBBEE) certificates every year. These agencies play an essential role in the effective implementation and functioning of BBBEE policy; most medium and large-sized businesses cannot acquire BBBEE certificates on their own. While the smallest enterprises – Exempt Micro Enterprises (EMEs) may be able to, even they often rely on verification agencies for advice and support. The scorecard is complicated

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When Does a Trust Qualify for Ownership Points?

Because of the wide range of benefits that Broad-Based Black Economic Empowerment (BBBEE, or BEE for short) compliance can confer, many businesses in South Africa are looking for ways to achieve a good rating on the scorecard. Level 1 is the highest ranking (there are eight levels in total), and the goal is to get as close to this as possible. The higher your score, the better your chances of preferential procurement and success in government tenders, and the bigger your contribution to the

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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