The long awaited amendments to the codes of good practice have finally arrived. AQRate Verification Services will review and examine the codes to present you with workshops nationally on the new requirements. Please find information below on some highlights in the codes and confirm your attendance at your earliest convenience.
OVERVIEW:
- There will be a 12 month transitional period
- Ownership, Skills Development and Supplier and Enterprise Development will be priority elements with subminimum requirements
- Failure to comply with the subminimum will result in a discount of one level on the BEE scorecard
- An EME will be an entity with a turnover up to R10m
- A QSE will be an entity with a turnover of R10m – R50m
- A Generic will be an entity with a turnover of above R50m
- 100% black owned EME/QSE entities will automatically qualify as a Level 1 contributor
- 51% or more black owned EME/QSE entities will automatically qualify as a Level 2 contributor
Ownership key points
- 40% subminimum will be measured on Net Value
- Net Value and Fulfilment have been consolidated
- Only South African based regulated investments will qualify for Mandated Investments
- There will be enhanced provisions for Private Equity Funds
- Clarity has been provided on Family Trusts
- Designated groups, new entrants will be included in the body of the scorecard
- New Entrants threshold has been increased to 50%
Management Control key points
- Junior Management will be included with minimised points
- Compliance targets will be aligned to the EAP targets of the Department of Labour and aligned to the EE Commission report
- There will be a measurement principle for entities operating on a Provincial and National level
Skills Development key points
- Targeted spend is 6% leviable payroll and will include external training
- 40% subminimum must be reached on weighted points
- Current category F and G (work based and informal training) will be capped to 15%
- Non core training costs such as travel and accommodation will be capped to 15%
- International training will be recognised if the training meets SAQA requirements
Supplier Enterprise Development
- 40% subminimum applies to both the Procurement and ESD sub indicators
- The import exclusion principle can be applied but not to designated sectors
There is a provision for Value Adding Suppliers, who are defined as BEE compliant suppliers who can demonstrate that production and operations add value. This will be measured in 4 indicators, generic companies need to comply with at least 3
Socio Economic Development
- Remains the same.
Comments by Bridget Ntombela, AQRate employee and ABVA Boardmember