Notice of Clarification for the Amended Codes of Good Practice gazetted 05 May 2015
A summary of the key points contained in the Notice of Clarification issued by The Department of Trade and Industry on 5 May 2015 relating to the implementation of the Amended B-BBEE Codes of Good Practice:
- The Amended B-BBEE Codes of Good Practice for Generic Enterprises are effective from 1 May 2015.
- The transitional period for the alignment of Sector Codes to the Amended Codes has been extended to 31 October 2015. We strongly urge you to consider performing a final verification before 31 October 2015 where you fall into an industry sector.
- All current valid B-BBEE certificates will be treated as having Empowering Supplier status for the purpose of verification for the first year under the Amended Codes
- The voting rights and economic interest of black participants in Broad-Based Ownership Schemes and Employee Share Ownership Schemes will not be recognised under the 25.1% voting rights and economic interest targets. Please note that this is a new amendment and will require further clarification, as the effect could be an impact on the Net Value calculation required for discounting purposes.
Furthermore, The Department of Trade and Industry, also advised the following regarding the implementation of the Amended Codes in terms of the B-BBEE Amendment Act 46 of 2013:
The Minister of Trade and Industry Dr. Rob Davies gazetted Phase I of the B-BBEE Codes of Good Practice on 11 October 2013, with a transitional period of 18 months, up to 30 April 2015 in preparation for implementation on 1 May 2015. Phase II covers about 80% of the entire B-BBEE Codes of Good Practice. Phase II which will be gazetted by Thursday, will cover the last 20% of the Codes.
The following Phase 1 Statements were gazetted for implementation:
- Code 000 Statements 000 – General Principles
- Code 100 Statements 100 – Ownership Element
- Code 200 Statements 200 – Management Control Element
- Code 300 Statements 300 – Enterprise and Supplier Development Element
- Code 400 Statement 400 – Skills Development Element, and
- Code 500 Statements 500 – Socio-Economic Development Element
Minister Davies has approved Phase II of the Codes for implementation and they are being gazetted and will be available during the course of this week.
Phase II includes the following Statements:
- Code 000 Statement 003 – Development and Gazette of Sector Charters
This statement is geared towards reporting and monitoring and providing oversight on sectorial performance by the Line Ministry:
- Code 000 Statement 004 – Scorecard for Specialised Enterprise
- Code 100 Statement 102 – Recognition in the Sale of Assets
- Code 100 Statement 103 – The Recognition of Equity Equivalent for Multinationals
- Code 600 Statement 600 – Measurement of Qualifying Small Enterprises
Some of the sector charters have submitted the aligned score codes to Minister Davies for consideration. They have also requested more time from the Minister to finalise their alignment processes and the Minister is considering the request.
We will keep you advised of further clarification and amendments as they are released.
All material subject to our Legal Disclaimers.