The Blog of Cenfed BBBEE Verification Agency. For all things regarding BBBEE Certificates, BBBEE Verification and 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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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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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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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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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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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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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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Recent talks about the revised codes for the B-BBEE has left many businesses in distress. This was basically due to the lack of communication as business owners only heard about the radical ideas and changes. This lack of information about what exactly is going on, left business owners worried about the consequences of the revised codes, and many have virtually given up on compliance as the talks gave the impression that it is going to be extremely difficult to be
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