DTI provides clarity on the Amended B-BBEE codes
On Monday 17th February 2014, the DTI provided clarity on certain areas of the Amended Codes of Good Practice:
- The various Sector Charter Councils have been instructed to align their particular B-BBEE sector codes with the Amended Codes on or before 11 October 2014.
- The calculation of the sub-race group targets in the Management Control and Skills Development Elements, is to be based on the national targets for the Economically Active Population (EAP) where the entity is a national concern and the regional EAP targets where the entity is a regional concern.
- The DTI has acknowledged that there is an error in the Sub-race group formula that will need to be corrected.
- A minimum of 40% of the total points (not targets) before bonus points (40% of 20 points = 8 points) must be achieved for the Skills Development Element to avoid discounting by one level on the scorecard
- The measurement date has been defined as the date on which the engagement letter is signed with the Verification Agent
- The verification period has been defined as a twelve month calendar period prior to the measurement date. The verification period may or may not coincide with the financial year end.
- Imports may not be excluded in the calculation of total BEE spend, where the entity trades in a sector that is designated for local production as published by the DTI
- A new QSE scorecard will be released that will provide for adjusted weightings and targets for QSE’s. However, compliance with all five elements of the scorecard remains unchanged, as does the rating of Ownership as the first Priority Element and Skills Development or Enterprise and Supplier Development as the second Priority Element
- QSE’s will not be required to be verified as to their “empowering supplier” status. QSE’s need only affirm in an affidavit that they meet one of the four criteria listed in the Amended Codes to be recognised as an “empowering supplier”.
Watch this space for further developments and interpretations on the Amended Codes!
All material subject to our Legal Disclaimers.