_: The Minister of Trade and Industry, Dr Rob Davies says that the Revised Broad-Based Black Economic Empowerment (B-BBEE) Codes of Good Practice will enhance the implementation of B-BBEE in a meaningful and sustainable manner. Davies added that the revised B-BBEE Codes of Good Practice 2012 contain principles and guidelines that will also facilitate and accelerate the implementation of B-BBEE.
The purpose of the Codes is to assist and advise the public and private sectors in the implementation of the B-BBEE Act. Minister Davies added that the key areas of refinement include the followings:
The generic scorecard has been reduced to five elements, with Employment Equity and Management Control being consolidated, and Preferential Procurement and Enterprise Development merged to form a Supplier Development Element;
The points for Ownership have been broadened to include designated groups in the main points;
Thresholds for Exempted Micro Enterprises (EMEs) and Qualifying Small Enterprises (QSEs) have been adjusted;
All companies, except Exempted Micro Enterprises, will be required to comply with the five elements of the B-BBEE scorecard;
The introduction of the priority elements: ownership, skills development and supplier development. Large enterprises are to comply with all three priority elements. The priority scores of entities that do not comply with sub-minimum requirements in each priority will be discounted;
Entities that are 100% black-owned will qualify as Level 1;
Entities that are more than 50% black-owned will qualify as Level 2;
Updated framework for the accreditation of B-BBEE Verification Agencies to include the Independent Regulatory Body of Auditors;
Skills Development Elements have been aligned to the New Skills Development Strategy and are to be outward focused; and Qualifying Small Enterprises must comply with all five elements on the scorecard.
Last week Cabinet approved the revised B-BBEE codes of good practice, and Minister Davies said they are intended to broaden the effects of empowerment.
Davies finally said that the public will have 60-days to commend once the codes have been officially gazette by the Department of Trade and Industry.