Practical B-BBEE Tips that can make a difference to your Scorecard
1. When verifying Socio-Economic Development, the following evidence is required to support your
claim for points :
- Proof of the contribution.
- A letter from the head of the beneficiary confirming receipt and confirming the percentage non-white beneficiaries.
- A letter from an independent person confirming the race of the beneficiaries.
2. When verifying Enterprise Development, the following evidence is required:
- An agreement between both parties confirming the arrangement.
- Documentation confirming the B-BBEE status and qualifying category of the entity (e.g. BEE certificate, proof of turnover, proof of black ownership, etc)
- Documentation proving that the contributions have been made. e.g. bank statements showing payments, receipts, letter of acknowledgement from beneficiary, etc.
3. Record keeping is the critical factor for earning points for Skills Development. These are some
of the most common ways to lose points on your scorecard:
- Training takes place outside of the measurement period
- Lack of training for black employees
- Inadequate record keeping
- Unable to prove attendance at training
- Unable to prove amount spent on training
- No records of internal training
- No learner-ship contracts
- A generic company must comply with the following pre-requisites:
- Compliance with criteria in Skills Development Act and Skills Development Levies Act
- Registration with applicable SETA
- Development of a workplace skills plan
- Implementation of a programme developing priority skills for black people
4. You cannot exclude expenditure from Telkom and Eskom in your total measured procurement
5. If you are a ‘designated employer’ according to the turnover thresholds for your industry (as
indicated in Schedule 4 of the Employment Equity Act), no points will be awarded for
Employment Equity, unless you have submitted the required EEA2 and EEA4 reports to the
Department of Labour.
6. Sector codes apply from that the day they are gazetted as a final sector code. This means that
you need to be aware of any new codes in the final stages of gazetting, as they may affect your
industry scorecard, retrospectively.
7. When measuring company contributions on a scorecard, it is important to understand which
elements are time-based and which are based on the financial period. Certain elements have
financial targets, and their measurement is based on the contributions or efforts made during a
12-month financial measurement period. These elements are skills development, preferential
procurement, enterprise and socio economic development. The remaining elements,
ownership, management control and employment equity, are all measured at the date of
All material subject to our Legal Disclaimers.