How to en­sure your busi­ness is BEE com­pli­ant

The Witness - - YOUR MONEY - — Busi­ness Editor.

WHILE there has been much de­bate on what rad­i­cal eco­nomic trans­for­ma­tion means, many agree the coun­try is fail­ing to be­come a more in­clu­sive econ­omy. In­no­va­tive BEE So­lu­tions busi­ness unit man­ager Han­sie De Waal said an es­ti­mated 75% of com­pa­nies in South Africa are not BEE com­pli­ant.

“If any of these com­pa­nies want to win ten­ders from gov­ern­ment or paras­tatals such as Eskom or Telkom, they need to en­sure their BEE sta­tus quo aligns with the reg­u­la­tory frame­work,” he said in a state­ment yes­ter­day.

He said from Jan­uary 2017 all BBBEE ac­cred­i­ta­tion needed to be re­newed un­der the re­vised codes and ver­i­fied by SANAS Ac­cred­ited Agen­cies.

Smaller busi­nesses with an an­nual turnover of less than R10 mil­lion are au­to­mat­i­cally level four con­trib­u­tors un­ der the Act, and ex­empted from com­ply­ing with the BEE scorecard.

Busi­nesses with a turnover of be­tween R10 mil­lion and R50 mil­lion are legally com­pelled to com­ply with the Qual­i­fy­ing Small En­ter­prise (QSE) scorecard, un­less the busi­ness is 51% black­owned, in which case it is ex­empted from com­ply­ing with the scorecard and is au­to­mat­i­cally deemed a level two con­trib­u­tor, said De Waal.

He said busi­nesses that need to com­ply with the BEE scorecard process must consider the fol­low­ing:

• Own­er­ship: busi­nesses that are 100% black­owned are au­to­mat­i­cally deemed level one con­trib­u­tor; while 51% black­owned op­er­a­tions are deemed level two.

• Management and con­trol needs to re­flect an eq­ui­table racial rep­re­sen­ta­tion in ex­ec­u­tive, se­nior, mid­dle and ju­nior management. •Skills de­vel­op­ment con­sid­ers the train­ing of all black peo­ple as well as un­em­ployed peo­ple. •En­ter­prise and sup­pli­ers de­vel­op­ment, in­clud­ing pref­er­en­tial pro­cure­ment, is weighted to­wards black­owned busi­nesses and valid BEE cer­tifi­cates. •So­cio­eco­nomic de­vel­op­ment fo­cuses on so­cial re­spon­si­bil­ity.

Fail­ure to com­ply with a 40% sub­min­i­mum in any of the el­e­ments will lead to an au­to­matic re­duc­tion of one level in their con­tri­bu­tion level.

De Waal said busi­nesses with rev­enue of R10 mil­lion to R50 mil­lion need to com­ply with the Em­ploy­ment Equity Act by sub­mit­ting an Em­ploy­ment Equity Plan, as well as the Skills De­vel­op­ment Act, and the Skills De­vel­op­ment Levy Act. The busi­nesses must reg­is­ter for the Skills De­vel­op­ment Levy and with their rel­e­vant Sec­tor Ed­u­ca­tion Train­ing Au­thor­ity. They also need to sub­mit a Work­place Skills Plan and be ap­proved. Train­ing has to be reg­is­tered at an ac­cred­ited train­ing provider.

Many busi­nesses find it oner­ous to com­ply with all as­pects of B­BBEE and pre­fer to deal with or­gan­i­sa­tions like In­no­va­tive BEE So­lu­tions.

“We can as­sist com­pa­nies to achieve bet­ter B­BBEE lev­els ... Im­por­tantly, so­cial and eco­nomic trans­for­ma­tion means more growth and busi­ness for your or­gan­i­sa­tion, mean­ing­ful eco­nomic de­vel­op­ment, more jobs for pre­vi­ously dis­ad­van­taged peo­ple and a more fairly rep­re­sented work­force and coun­try,” said De Waal.

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