The Blog of Cenfed BBBEE Verification Agency. For all things regarding BBBEE Certificates, BBBEE Verification and BBBEE codes.
Obtaining a Broad-Based Black Economic Empowerment (BBBEE) certificate for your company may seem like a lot of hard work, tedium and jumping through bureaucratic hoops – but it doesn’t have to be. A certificate can give you an edge over competitors and open up a lot of doors for business growth – and it might be easier to acquire than you think. BBBEE policies are set out in the BBBEE Act (No. 53 of 2003) and reinforced by the Codes
The revisions to Broad-Based Black Economic Empowerment (BBBEE, or BEE) legislation that came into effect in May 2015 continue to cause confusion and anxiety among business owners in South Africa. The original BBBEE legislation comprised the Broad-Based Black Economic Empowerment Act, Number 53 of 2003, and its supplementary, detailed Codes of Good Practice (issued in 2007). The guiding goal of the legislation has always been to effect positive transformation in the business world, addressing the legacy of apartheid and empowering
Broad-Based Black Economic Empowerment, BBBEE or BEE for short, can be a confusing subject to navigate as a business owner. While compliance with BEE legislation is not compulsory, it is highly recommended because of the benefits it can confer on businesses. Particularly for Qualifying Small Enterprises (QSEs), compliance with BEE can give them a competitive edge; allowing them to work with government and public entities, and participate in the chain of preferential procurement. As a result, many QSEs seek certification.
THE PURPOSE OF AN EMPLOYEE’S BENEFIT TRUST (EBT) IS TO ACHIEVE THE FOLLOWING: Maximising BEE ownership points whilst achieving: to incentivize participating employees to contribute to the profitability and growth of the donor; to empower the employees through participation and wealth creation; to encourage alignment to the company values and to retain employees. In terms of the BEE Codes, black participants in an EBT holding rights of ownership in the company being measured (Measured Entity) may contribute: SCORECARD POINTS Maximum
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
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
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
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
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
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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