Draft Gazette 41709 released for comment on 15th June 2018

Jun 20, 2018 | B-BBEE Blog

The Draft Gazette 41709 proposes:

  • A new set of Definitions.
  • A revised Enterprise and Supplier Development Code 400 wording.

Primary changes proposed are as follows :-

  • “Absorption” will mean a learner securing a long term of employment (also defined) and will no longer include proceeding with further education and training.
  • The definition of Designated Group Suppliers is clarified as 51% ownership by Black Designated Groups.
  • Critical Skills is tightened to mean as defined by the relevant SETA and not any SETA.
  • 30% Black Women Owned means an Entity where Black women own at least 30% and not more than 30%.
  • The Preferential Procurement Scorecard is amended as follows: –
    • The two separate indicators for purchases from EMSs and QSEs are merged into one with 5 Points and a target of 25%. Currently there are 7 points across the two with targets of 15%. There is an additional clause that permits purchases from Generic entities that are 51% Black owned to be included under this indicator so long as they are 51% black owned via flow through and not modified flow through.
    • Indicator 2.1.4 relating to purchases from 51% Black Owned suppliers becomes 2.1.3 and the points and target are increased from 9 to 11 and 40% to 50% respectively.
  • The definition of qualifying Enterprise and Supplier Development beneficiaries is changed to EMEs, QSEs or Generic Entities that are 51 % Black or 51% Black Women Owned utilising the flow through principle.
  • A new recognition multiplier or 2.0 is introduced for the purchases from suppliers that are 51% Black Owned or 51% Black Woman Owned utilizing the Flow Through Principle.
  • The recognition multiplier of 1.2 for first time suppliers is removed.
  • Suppliers to the measured entity cannot benefit from Enterprise Development contributions.
  • The recognition of guarantees provided on behalf of an Enterprise or Supplier Development beneficiary is increased from 3% to 50%.

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