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 in 2015 to be rated as a level 1 entity and keeping that score until 2017, by using their 2015 financials only in 2017. By doing this it will give companies time to get all the required knowledge and assurance before just implementing the new codes.
It has taken government 10 years to realize that the old codes did not work, and now by implementing a new code, no one can be sure if it will work this time around. Cenfed BBBEE Verification Agency therefore requests that customers take the time to gather knowledge and understanding of the new codes and make sure that it makes business sense to implement a revised code into the workplace. After all BBBEE is a business tool if there is no financial benefit to implement the codes why bother?
Cenfed sympathises with the companies that rushed to have their BBBEE Certificates issued on the old codes before the new codes rolled out. This leaving top management less time to have the new codes implemented in the company, therefore putting strain on Top management.
It seems the lack of communication by Government is the cause that the business environment out there is so upset with government; they are now diverting their anger and frustration towards verification agencies. Please don’t shoot the messenger!!
Cenfed understands the frustration companies may have in making such unnecessary forced decisions in such a short time especially about something as important as the ownership of their business. These are companies that people have built up over many years and now feel that they are forced to sell shares to people they do not know, or are not sure will benefit the company.
It is not normal to sell shares in a privately owned concern if it does not bring something in return, and it is not always the money that business owners want but preferably business knowledge and expertise of their industry.
There are not that many Black business entrepreneur that have the expertise that is required in the workplace and therefore make it more impossible for the white business owner to have trust and faith in the new BBBEE codes gazetted in 2013, which clearly indicates a return to narrow based BEE.