How to ensure your business is BEE compliant
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.