What is BBBEE (Broad-based Black Economic Empowerment)?

Transcription

1 B-BBEE PRESENTATION

2 What is BBBEE (Broad-based Black Economic Empowerment)? According to the BEE Act, BBBEE is defined as: an integrated and coherent socio-economic process that directly contributes to the economic transformation of South Africa and brings about significant increases in the number of black people that manage, own and control the country s economy, as well as significant decreases in inequalities.

3 What is the relationship between the Tourism BEE Charter and The Codes of Good Practice? Section 9 of the BEE Act makes provision for the development of the Codes of Good Practice. The draft of the first phase of the Codes of good Practice was released for public comment by the dti in December 2004 and included the dti s Generic Scorecard, as well as codes on ownership, management, verification agencies and industry charters. A draft of the second phase of the Codes was released in mid-2005 on employment equity, skills development, preferential procurement, enterprise development and corporate social investment. The Codes of Good Practice were finally gazetted in February 2007 The Tourism BEE Charter was developed in response to legislation, according the BEE Act. Section 12 of the Broad-Based Black Economic Empowerment (B-BBEE) Act 2003, makes provision for the development of transformation charter for the various sectors of the South African Economy. The Regulatory framework governing transformation in South Africa includes the BEE Act, the Broad-Based strategy and scorecard, the Codes of Good Practice (CoGP) and industry charters, which in turn have created the context for BEE initiatives in SA

4 7 Elements of BBBEE Ownership Measures the entitlement of black people to participate in the ownership of enterprises Management Measures the effective control of enterprises by black people Employment Equity Measures initiatives intended to achieve equity in the workplace in line with the spirit and intent of the Employment Equity Act as considered in the context of the Broad based BEE Act Skills Development Measures the extent to which employers implement initiatives designed to promote the development of core competencies of black employees continue

5 Continue Preferential Procurement measures the extent of implementation of initiatives intended to widen market access to enterprises meeting the compliance criteria specified in statements issued in Code 500 of the Codes of Good Practice, gazetted in February Enterprise Development Measures the extent of implementation of initiatives intended to assist and accelerate the development of enterprises meeting the compliance criteria specified in Code 600, gazetted in February continue

6 Continue Socio-Economic Development can take different forms; It involves development program for women, youth people with disabilities, people living in Rural areas, or/ and supporting healthcare and HIV/ AIDS program or/ and support for education program, resources and materials at primary, secondary and tertiary education level, as well as bursaries and scholarships; Community training skills development for unemployed people and basic education and training; or support arts, culture or supporting development program.

7 Are you an EME, QSE or Generic? You are considered and EME (Exempted Micro-Enterprise) if Any enterprise with an annual turnover of R5 million or less qualifies as and Exempted Micro-Enterprise (EME) Accept in the case of Tourism companies, where the turnover threshold for an EME is R2,5 million Exempted micro-enterprise s are deemed to have a BBBEE status of Level Four Contributor having a procurement recognition of 100%. An EME qualifies for a promotion to a B-BBEE status Level Three Contributor having a B-BBEE procurement recognition of 110%, IF it is more than 50% owned by black people or black women. cont

8 Qualifying Small Enterprise You are considered a Qualifying Small Enterprise (QSE) if An enterprise with an annual Total Revenue is between R5 million and R35 million. (Or Tourism companies the total revenue is from R2,5 million to R35 million) A QSE must select any four of the seven elements of BBBEE for the purpose of measurement under the QSE scorecard in code 800. cont

9 Generic You are a Generic enterprise if.. An enterprise is rated on a generic scorecard if their Total Revenue is greater than R35 million Being eligible in terms of the Generic scorecard, an enterprise is measured on all seven elements, i.e. Ownership Management Control Employment Equity Skills Development Preferential Procurement Enterprise Development Socio-Economic Development

10 B-BBEE COMPLIANCE LEVELS CONTRIBUTION LEVEL QUALIFYING COMPLIANCE LEVEL Level One Contributor > 100 points 135% Level Two Contributor > 85 but < 100 points 125% Level Three Contributor > 75 but < 85 points 110% Level Four Contributor > 65 but < 75 points 100% Level Five Contributor > 55 but < 65 points 80% Level Six Contributor > 45 but < 55 points 60% Level Seven Contributor > 40 but < 45 points 50% Level 8 Contributor > 30 but < 40 points 10% Non - Compliant Contributor < 30 points 0%

11 Preferential Procurement Policy Framework Act - PPPFA From the 7 th December 2011, the PPPFA will take effect The PPPFA specifically refers to preference points being allocated when tenders are being reviewed The preference points on the 80/20 principle will be allocated as follows; B-BBEE STATUS OF CONTRIBUTOR NUMBER OF POINTS (80/20 SYSTEM) Level One Contributor 20 Level Two Contributor 18 Level Three Contributor 16 Level Four Contributor 12 Level Five Contributor 8 Level Six Contributor 6 Level Seven Contributor 4 Level 8 Contributor 2 Non - Compliant Contributor 0

12 List of Accredited Verification Agencies in the Western Cape Company Name : AQRate (Pty) Ltd * Contact Person : Chris van Wyk Telephone : Website : Location : SANAS Unique Reference Number : Date of issue of Pre-Assessment letter : wcape@aqrate.co.za Tyger Valley BVA021 12/31/1969 Company Name : Contact Person : BEE Empowered and Labour Consultancy cc * Lizette Frank Telephone : Website : Location : SANAS Unique Reference Number : Date of issue of Pre-Assessment letter : Lizette@bempowered.net Paarden Eiland BVA057 12/31/1969

13 Company Name : BEE Verification Agency cc * Contact Person : Willem Mostert Telephone : Website : Location : SANAS Unique Reference Number : Date of issue of Pre-Assessment letter : willem@bee-verification.com Parow BVA014 12/31/1969 Company Name : Codex Ratings (Pty) Ltd * Contact Person : Kobus Potgieter Telephone : Website : Location : SANAS Unique Reference Number : Date of issue of Pre-Assessment letter : kobus@codexratings.co.za Tokai BVA065 3/10/2010

14 More contacts ABVA (Rating agency s industry Body) Contact Person: Maresce de Saldanha Address: info@abva.co.za Department of Economic Development & Tourism: Tourism BEE Compliance Contact Person: Yumna Gihwala Salie Address: ygihwala@pgwc.gov.za

15 Thank You!