The Coega Development Corporation (CDC) has again achieved broad-based black economic empowerment (BBBEE) Level 1 status, for the second consecutive year.
“The [corporation], as catalyst for socio-economic aancement, continues to demonstrate its commitment to transformation and black empowerment through this achievement,” Andile Ntloko, the head of its small, medium and micro enterprise (SMME) development unit, said yesterday.
The Level 1 status is based on the 201415 financial year. The organisation underwent a full BBBEE audit by Beever, an accredited verification agency in East London. CDC was measured against the adjusted generic scorecard for companies with an annual turnover of more than R35-million. It got 100 points, with BBBEE procurement recognition of 135%.
“We also qualify as a value adding supplier, which has additional benefits of increasing our clients’ BBBEE scorecard under [the] preferential procurement element by 168.75%,” said Nolubabalo Pandle, the CDC senior BEE analyst.
It was measured on six BBBEE elements. Last year, the CDC became the first state- owned enterprise to achieve a BBBEE Level 1 contribution status. As an implementing agent for programme management and related services, this achievement positions the organisation as a preferred service provider and business partner.
“We pride ourselves in continued contributions supporting the integration of black people and communities in economic activities. We further promote the procurement of goods and services from small, medium and micro enterprises, including black-owned and black women-owned enterprises who are also BBBEE compliant,” said Ntloko.
Codes of Good Practice
According to the revised BBBEE Codes of Good Practice, SMMEs with an annual turnover below R10-million are granted an automatic Level 1 status if they are 100% black-owned. If they are more than 51% black-owned, they get a Level 2 BBBEE status. They also get automatic recognition as empowering suppliers. Large companies with annual turnover above R50-million will need to comply with five BBBEE elements.
“We look forward with anticipation to the implementation of the amended BBBEE Codes of Good Practice. The revised codes pose both challenges and opportunities for us,” said Ntloko.
“The organisation has started putting in place strategies to achieve targets in line with the proposed changes. The organisation will to continue implementing programmes to build the capacity of black-owned SMMEs and also ensure that they benefit from procurement opportunities presented by the CDC.”
The organisation will also put in place sector specific programmes to benefit a wide range of SMMEs as part of its Enterprise and Supplier Development Programme.
The CDC is the operator of the Coega Industrial Development Zone in Nelson Mandela Bay. Established in 1999, the CDC is wholly-owned by the South African government. Its Zone 2 is a fully registered customs control area. To date, the CDC has enabled the creation of over 62 142 jobs, with 28 operational investors, and has an investment portfolio of more than R151-billion. The CDC has also trained 71 445 people since inception.
Trade and Industry Minister Rob Davies confirmed that the Amended Codes of Good Practice would come into effect on 1 May 2015. A notice was carried in the Government Gazette on 15 May, stating that all BBBEE verifications in respect of a financial year ending on or before 30 April 2015 could be conducted using the old Codes of Good Practice.
All BBBEE verifications in respect of a financial year ending after 1 May 2015 must be conducted using the Amended Codes of Good Practice, with the exception of the Sector Codes. The transitional period for the alignment of Sector Codes was also extended to 30 October 2015.
During the inaugural year of the Amended Codes of Good Practice, all valid BBBEE certificates issued under the old Codes of Good Practice, as well as the relevant Sector Codes, should remain valid and should be accepted and treated as conferring empowering supplier status, it was reported.
Source : SouthAfrica.info