News

News2019-10-29T12:42:11+00:00

On Friday 31st May 2019, the Department of Trade and Industry published Gazette #42496, an amendment to Gazette #36928. The amendments were published in terms of Section 9 (1) of the Broad-Based Black Economic Empowerment Amendment Act 2003, (Act No. 53 of 2003) as amended by Act 46 of 2013.

This Gazette, which issued amendments to Code Series 000, 300, 400 and Schedule 1, came into effect upon the date of publication. A six-month transition period is allowed for implementation. Hence, until and including 30th November 2019, an organisation measured against the Generic Codes can elect to be measured against the 2013 provisions held in Gazette #36928. Notwithstanding, an organisation may elect to be measured against the amended provisions immediately, but only before 1st December 2019. Should an organisation elect to be measured on the amendments of this Gazette, all the amendments in the Gazette are applicable.

Either on or following 1st December 2019, evidence of an organisation’s Status Level, whether in the form of a SANAS accredited B-BBEE Certificate, an Affidavit or a CIPC Certificate, must be measured against the 2019 amended provisions of Gazette #42496. This deadline is non-negotiable. Gazette #36928 will be repealed on 1st December 2019. Consequently, following the repeal, all relevant amendments apply to the Amended Generic Codes; therefore all organisations, irrespective of their threshold, are bound by it.

However, organisations measured on a Sector Code issued in terms of Section 9(1) of the B-BBEE Act as amended, are measured according to the requirements of that particular Sector Code. Therefore, organisations measured on a Sector Code will not be affected by these amendments.

Nevertheless, where matters are silent in the Sector Codes, the amended provisions of Gazette #42496 are applicable.

The Sector Councils are, however are now required to align their sector specific Codes to the dti’s Amended Codes of Good Practice, and a transitional period of twelve points from 1 June 2019 to 30 May 2020 has been allocated for this process, encouraged to initiate an alignment process to integrate these amendments into their specific Sector Code. On the 18th of September 2019 the Tourism B-BBEE Charter Council published their draft amendments in Gazette 42725 and invited all interested and affected persons and organisations to participate in the alignment by submitting comments and inputs in writing by no later than 30 November 2019 to the Tourism B-BBEE Charter Council.

Statement 000

General Principles – The Generic Scorecard Notice 306 of 2019

  • Compliance with Priority Element clearly states that Sub-minimum Requirements are only applicable when Bonus Points are excluded as outlined below:
    • Skills Development – 40% of the 20 points available
    • Preferential Procurement – 40% of the 25 points available
    • Supplier Development – 40% of the 10 points available
    • Enterprise Development – 40% of the 5 points available
  • Organisations that are 51% or 100% ‘Black’-owned QSEs that benefit from Enhanced Recognition only need to comply with Ownership as a Priority Element (paragraph 3.3.2.2).
  • The Discounting Principle applies to QSEs that do not comply with the Sub-minimum Requirements. Organisations that are 51% or 100% ‘Black’-owned EMEs or QSEs can achieve Enhanced Recognition using the Flow-Through Principle. This indicates that the Modified Flow-Through Principle does not apply in this instance.
  • The Joint Venture calculation applies to organisations with a Status Level 1, 2 or 4. Points are outlined as follows:
    • Level 1-100% ‘Black’-owned = 100 points;
    • Level 2-51% ‘Black’-owned = 95 points; and
    • Level 4 = 85 points.

This calculation is applicable across all Sector Codes except the Construction Sector Code, which has its own Joint Venture calculation.

Statement 300

The General Principles for Measuring Skills Development

Notice 305 of 2019

The Skills Development Generic Scorecard has been amended as follows:

Indicator Weighting points Compliance Target Amendments
2.1.1.1

Skills Development Expenditure on Learning Programmes specified in the Learning Programme Matrix for black people as a percentage of Leviable Amount

6 3.5 % Weighting Points and Compliance Target was reduced to make provision for bursaries.
2.1.1.2

Skills Development Expenditure on Bursaries for Black Students at Higher Education Institutions

4 2.5% New indicator relating to bursaries for tertiary education.
2.1.1.3

Skills Development Expenditure on Learning Programmes specified in the Learning Programme Matrix for black employees with disabilities as a percentage of Leviable Amount

4 0.3% No change to Weighting Points
2.1.2.1

Number of black people participating in Learnerships, Apprenticeships and internships as a percentage of total employees

6 5% Combining the old employed and unemployed Learnerships, Apprenticeships and Internships into one category with the same target but fewer points. This is to ensure that double counting does not occur.
BONUS POINTS

2.1.3

Number of black people absorbed by the Measured and Industry Entity at the end of the Learnership, Apprenticeship or Internship

5 100% Limited to Learnerships, Apprenticeships and Internships
Total 25 Unchanged
  • The total points, excluding Bonus Points, remain unchanged. The only adjustments were for the provision of bursaries, as well as the combination of Employed and Unemployed Learnerships, Apprenticeships and Internships.
  • The EAP calculation remains unchanged and applies to bursaries.
  • Skills Development expenditure on bursaries under 2.1.1.2 must not be counted under the Skills Development Indicator 2.1.1.1 and vice versa.
  • The Category F&G Learning programs’ cap increased from 15% to 25%; however, training costs such as travel, accommodation and catering remain at 15%.
  • In terms of bursaries, there is no cap on training costs such as travel, accommodation or catering.
  • Salaries and wages for Learnerships, Apprenticeships and Internships claimed under Skills Development Expenditure includes stipends paid to ‘Black’ Bursary Students. However, it is vital to note that there can be a stipend for employees, but wages or salaries are excluded.
  • The category A Bursaries are defined as ‘Black’ Students registered at educational institutions established by, or registered with, the Department of Basic Education or the Department of Higher Education and Training.

One could assume that adding Bursaries to the Skills Development Element is a way to address ‘fees must fall’ through the private sector to alleviate the potential financial burden on the economy.

Statement 400

The General Principles for Measuring Enterprise and Supplier Development

Notice 304 of 2019

The Enterprise and Supplier Development Scorecard has been amended as follows:

Indicator Weighting points Compliance Target Amendments
2.1.1

B-BBEE Procurement Spend from all Empowering Suppliers based on the B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend

5 80% Unchanged
2.1.2

B-BBEE Procurement Spend from all Empowering Suppliers that are Qualifying Small Enterprises based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend. Refer to Paragraph 3.9 in Statement 400 – The General Principles for Measuring Enterprise and Supplier Development, Notice 304 of 2019

3 15% If a Generic Enterprise was previously recognized as a QSE, the recognition remains for a maximum of five years, using only Flow-Through, providing evidence supports this.
2.1.3

B-BBEE Procurement Spend from all Empowering Exempted Micro- Enterprises based on the applicable BBBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend. Refer to Paragraph 3.9 in Statement 400 – The General Principles for Measuring Enterprise and Supplier Development, Notice 304 of 2019

4 15% If a Generic Enterprise was previously recognized as an EME, the recognition remains for a maximum of five years, using only Flow-Through, providing evidence supports this.
2.1.4

B-BBEE Procurement Spend from Empowering Suppliers that are at least 51% Black Owned based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend

11 50% Increased from 9 points to 11 with weighting increased from 40% to 50%
2.1.5

B-BBEE Procurement Spend from Empowering Suppliers that are at least 30% Black Women Owned based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend

4 12% Unchanged
Bonus points

2.1.6

B-BBEE Procurement Spend from Empowering Designated Group Suppliers that are at least 51% Black Owned.

2 2% No change except for clarification requirement of 51% ‘Black’ Ownership
2.2.1

Annual value of all Supplier Development Contributions made by the Measured Entity as a percentage of the target.

10 2% of NPAT If a QSE Supplier Development Beneficiary evolves to become a Generic Enterprise the recognition remains for maximum of five years, using only Flow-Through, providing evidence supports this.
2.3.1

Annual value of Enterprise Development Contributions and Sector Specific Programmes made by the Measured Entity as a percentage of the target.

5 1% of NPAT If a QSE Supplier Development Beneficiary evolves to become a Generic Enterprise the recognition remains for maximum of five years, using only Flow-Through, providing evidence supports this.
Bonus Points

2.4.1

Bonus point for graduation of one or more Enterprise Development beneficiaries to the Supplier Development level.

1 Unchanged
2.4.2

Bonus point for creating one or more jobs directly as a result of Supplier Development and Enterprise Development initiatives by the Measured Entity.

1 Unchanged
Total 46 44 Total weighting points changed
  • The Net Profit After Tax (NPAT) calculation is provided for under this element.
  • First time supplier recognition applies to organisations that are 51% ‘Black’-owned or 51% ‘Black’ Women-owned using the
  • Flow-Through Principle only, the calculation of which spend is multiplied by 1.2.
  • Guarantees under the Benefit Factor Matrix increased from 3% to 50% recognition.
  • The increased spend with ‘Black’-owned entities could tip the scale in favor of increasing ‘Black’ Ownership within the measured entity to compensate for the loss in points.
  • The insertion of paragraph 3.8: “A Supplier Development Beneficiary is deemed as being part of an organisation’s supply chain, whereas an Enterprise Development Beneficiary is not.” This addition clearly distinguishes the role of the Beneficiaries in an organisation’s supply chain,

in that a Beneficiary can only be an Enterprise Development Beneficiary or a Supplier Development Beneficiary, not both.

  • The points for 51% ‘Black-owned organisations has increased to 11

Interpretation & Definitions

Notice 303 of 2019

Schedule 1

The expectations of the Codes of Good Practice must be interpreted according to the provisions in the Codes. Any reasonable interpretation consistent with the objectives of the Act and the Regulations thereof must take precedence. The words importing persons shall mean, where the context so requires or admits, individuals, firms, partnerships, trusts, corporations, government bodies, authorities, agencies, unincorporated bodies of persons or associations and any organisation having legal capacity.

Definition amendments in Schedule 1 are outlined hereunder:

OLD DEFINITION NEW DEFINITION
Absorption Means a measure of the measured entity’s ability to successfully secure formal, permanent or long-term contract of employment for the learner, or to assist the Learner’s proceed with further education and training. Means a measure of the Measured Entity’s ability to successfully secure a long-term contract of employment for the Employee, Learner, Intern or Apprentice.
Long Term Contract of Employment Not previously addressed Means a legal agreement between an individual and an entity that this individual would work until his or her mandatory date of retirement.
30% Black Woman Owned Means an entity in which:

(a)          Black Woman hold more than 30% of the exercisable voting rights

(b)          Black Woman hold more than 30% of the economic interest

(c)           has earned all the points for Net Value under statement 100

Means an entity in which:

(a)         Black woman hold at least 30% of the voting rights.

(b)         Black woman hold at least 30% of the economic interest

(c)         has earned all the points for Net Value under statement 100

Current Equity Interest Date (Previously Net-Value Date) Means the latter occurring of the date of commencement of statement 100 and the date upon which the earliest of all still operative transactions undertaken by the measured entity in order to achieve black rights of ownership, became effective and unconditional Means the later occurring of the date of commencement of statement 100 and the date upon which the transaction undertaken by the measured entity in order to achieve black rights of ownership, became effective and unconditional.

* Authentic Rating Solutions are driven by integrity and professionalism to provide clients with a credible B-BBEE verification outcome. Each verification process is carried out with a solid support structure by their technically qualified team with more than 10 years experience in the B-BBEE arena.  In line with legislative requirements and through meeting stringent criteria, they are a SANAS Accredited Verification Agency (BVA220) qualified to issue a broad range of B-BBEE Certificates and verification services.

Authentic Rating Solutions is a B-BBEE Verification Agency and is currently looking for an experienced Office Administrator. This position will play an integral role in the customer services and business operations. The Office Administrator will provide administrative, reception and communications support. Responsibilities will include office and front of house management, greet and direct visitors and answer and respond to calls and emails. Qualified, driven and energetic candidates will have impeccable verbal and written communication skills, a strong ability to multi-task and a friendly and serving demeanor.

Position: Office Administrator (5+ years’ experience)
Type: Permanent
Company: Authentic Rating Solutions (Pty) Ltd
Location: Centurion Central, Pretoria, Gauteng, South Africa
Salary: R10 000 to R12 000
Start Date: As soon as possible
Seniority Level: Mid Level
Industry: Client Services

Closing Date: 30 April 2018

Job Responsibilities:
• Office management & housekeeping
• Reception duties
• Basic Accounting, including quoting and invoicing.
• Office administrative duties, including filing, answering phone calls, responding to emails and preparing documents
• Provide administrative support for management team
• Diary management, scheduling of meetings and making travel arrangements
• Office supplier and service provider coordination
• Customer data management
• Implementation and maintenance of administrative procedures and systems
• Event administration and coordination

Minimum Requirements:
• Matric
• Tertiary administrative or secretarial qualification
• Minimum 5 years of experience in similar role
• Highly proficient in MS Word, MS Excel and MS PowerPoint
• High business acumen
• Excellent written and verbal communication skills in English
• Excellent interpersonal skills
• Detail orientated, adaptable, assertive, professional and deadline driven
• Strong knowledge of QuickBooks software
• Own car and valid driver’s license

To apply e-mail your CV to info@atrs.co.za by 30 April 2018. If you have not received a response within two weeks, your application was most likely unsuccessful.
For more information contact Yolanda du Plessis on 012 110 4206

Authentic Rating Solutions’s scope of accreditation now includes the Amended Construction Sector Charter Codes and we will be hosting an in-depth workshop and training session on these amended codes.

BOOK NOW

EVENT DETAILS:

WORKSHOP / TRAINING DAY: The Amended Construction Sector Charter Codes

THURSDAY – 8 February 2018

The Amended Construction Sector Codes were published on 1 December 2017 with immediate effect. Authentic Rating Solutions is hosting a full-day workshop to highlight the key aspects which should be in place before your Financial Year End in February. During this full day workshop we will discuss the changes in measurement, verification and monitoring principles which have been introduced in the Amended Construction Sector Codes.

CANDLEWOODS BOUTIQUE VENUE
1769 Candlewood Lane, Candlewoods Country Estate, Centurion
Map & Directions

KEY DISCUSSION POINTS
– Key principles and the structure of the codes
– Priority elements and their implications
– Enhanced Recognition Status (ERS)
– The discounting principle effect
– Changes to B-BBEE recognition levels and scorecard elements
– Minimum thresholds
– Ownership
– Enterprise and supplier development
– Socio-economic development

R 1850* per delegate (VAT inclusive)
*25% Discount on 3 delegates; 35% Discount on 4 delegates
(Invoice and payment details provide upon registration)

Get in touch

Get in touch with us and we’ll have one of our skilled staff members get you going.

GET IN TOUCH