Some B-BBEE concessions still a 'mystery'

Some B-BBEE concessions still a 'mystery'

2013-10-04 11:40

Cape Town - There is cause for concern because the B-BBEE scorecard concessions for qualifying small enterprise (QSE) are still a mystery, said Wade van Rooyen, managing director of Grant Thornton Verification Services.

He commented on the Amended B-BBEE Act and Refined Codes of Good Practice, which form part of a B-BBEE Summit which started under the theme “a decade of economic empowerment 2003 to 2013”.  

"There is still no clarity on the B-BBEE scorecard concessions for the important QSE segment of business," said Van Rooyen.
At the same time he said it is encouraging that the new B-BBEE Codes of Good Practice are well on track to be gazetted on the scheduled date of October 11 2013.

"There has been purpose to the delays and we expect maximum impact from next week’s release,” he said.

"The draft codes, which we’ve reviewed over the past few months, had a lot of provisions which were really onerous. They had the potential to seriously challenge companies if they had been passed into law in their previous forms."

After events at the summit on Thursday, the previously harsh provisions have been diluted, according to Van Rooyen.

They will now be less onerous for businesses than originally anticipated and the reduction in BEE status will be less than the draft codes proposed.

Impact on QSEs

“With the dti announcing today that the seven scorecard elements are going to be combined into five, there is still no certainty as to what this means for QSEs," said Van Rooyen.

Previously these businesses only had to measure themselves on four out of the seven scorecard elements.

"We await further clarity on the QSEs during further summit discussions. It is implied, however, that QSEs  will have to measure themselves on all five of the new elements, which will impact in this segment of businesses being disadvantaged.”

The QSE threshold has moved from a maximum of R35m to a much higher amount of R50m. If revenue is between R10m and R50m a business will qualify as a small enterprise.

"With the lack of detail in today’s summit relating specifically to QSEs, it is difficult to quantify how beneficial this will be for these businesses," said Van Rooyen.

"I sincerely hope, though, that QSEs will continue to receive an equivalent advantage over larger companies to stimulate growth in this business sector.”

It was announced at the summit that companies failing to achieve minimum targets for priority elements will be penalised with a one level drop in their BEE levels.

The priority elements are ownership, skills developments and supplier & enterprise development.

"If the subminimum target requirements in the areas of ownership are also applicable to QSEs then this will result in a penalty drop of one level for all QSEs that do not have black ownership," explained Van Rooyen.

"For example, a company under the previous codes could choose four of seven elements and elect to exclude measurement of ownership. This will no longer be an option and changes the playing field.”

Exempt micro enterprises

At the summit it was announced that the exempt micro enterprise (EME) threshold increased from a maximum of R5m to R10m turnover per annum.

"This is good news, because it gives the smaller enterprises a further competitive advantage,” said Van Rooyen.

It was announced that 100% black-owned EMEs will automatically receive a level 1 recognition and EMEs which are 51% black owned will automatically receive a level 2 recognition.

"This is an excellent incentive and we applaud the dti for making these significant amendments,” said Van Rooyen.

- Fin24

  • proudlysa - 2013-10-04 12:02

    Backhand to the corrupt ANC cadres and walla....your certificate will be valid. Damn Zuma speaking on how bad fronting is for BEE and then him and his few connected cronies steal us blind. Damn cheek (he must stop fronting as President and come out as a complete crook)

  • FJ Cele - 2013-10-04 12:05

    If it was not for BEE - Ayanda and Booi would not have a job.

      FJ Cele - 2013-10-04 13:09

      LOL love it when I get to you Luzuko = Kagiso Booi = hipocrite. You made my day.

  • Juan van der Merwe - 2013-10-04 12:07

    B-BBEE = biggest load of horse crap .employ people on merit of knowledge and workmanship ,not skin colour.

      Beatrix Rode - 2013-10-04 14:11

      Luzuko-Wow the uneducated Afrikaners started Eskom, Metrorail, Transnet etc and they were in great condition until the uneducated blacks took over!! A Bit of a difference there, don't u think?

  • non-believer - 2013-10-04 12:12

    call it what you want; do what you want! this is still the new black apartheid. at some stage ability ought to overtake historical imbalances, artificial systems like this do greater harm to the targeted beneficiaries than good. one day self respect will overtake short term greed. this whole process is shifting goalposts. the old cry used to be "give us an equal chance" well we all know what that was able to achieve in general. As a British newspaper pointed out there is nowhere else on the planet where a majority rule government still needs to impose a BBEEE system against a disenfranchised minority. if black communities were able to think coherently, they would realise that the ANC has been in power since 1994 and has only been able to lower the standard of education in the black communities and frustrate them due to self enrichment taking a higher priority than serving those communities. I expect no better from business in this country who will prostitute themselves for a buck at whatever cost - they slept with the old regime and now are sleeping with the current regime. Viva comrades.

      Beatrix Rode - 2013-10-04 14:14

      Luzuko - the word apartheid = overrated = use it as a "sweep" to enriched yourselves. Why after ten years still the urge to take away everything that we worked for (let wel ons het daarvoor gewerk en nie van julle gesteel nie=julle het niks gedoen om dit te verdien nie!!)

      Tshephiso Masenya - 2013-10-04 15:49

      Haai Luzuko, don't be apologetic here!! @Beatrix Rode: en wat het julle en julle voorvaders gedoen om dit te verdien? = oppress the majority of this country for self gain! Wat het julle daarvoor gewerk wat onse mense nie gewerk het nie?? EVERYTHING a white man has, there's a black man/woman behind that has slaved for them or now a days contributed to their success, incl some of their kids! So moenie twak praat nie Beatrix!! Its people like u with IRRESPONSIBLE comments that make no effort in building this nation. And don't get it twisted, transformation isn't there to please everyone but its necessary. And believe u me, not all black people agree with every transformation policy introduced incl. BBBEE. So get over your emotional ramblings pull yourself together, and suggest positive change!

      Beatrix Rode - 2013-10-04 16:36

      Luzuko - I did not say anywhere - that I was not born then - please read my comment slowly, maybe u understand it the second time around. Tshephiso - I can go on forever giving you my view - but it will be pointless - unfotunately I do not think that the majority of white and black people will ever be able to see things in the same way - as much as I would like it to be different!!

      Victor Luiz - 2013-10-04 23:31

      You people are easy to blame the fact that we whites oppressed you for so long. If I were you I'd feel ashamed of the fact that so many were oppressed by so few.

  • John Stoltz - 2013-10-04 12:24

    B-BBEE has originally been instituted by other countries to protect the minority ! Our leaders see it fit to protect the masses ? Luckily there are a meriad of black people who make the grade, but unfortunately they are now classified as AA's ! Like everything they touch, the ANC knows how to make a good thing undone !

  • Mafilo Lacoste - 2013-10-04 12:47

    Great news for EME's

  • Basil Alley - 2013-10-04 12:57

    BEE is good for people who were disadvantaged previously. It levels the playing fields and forces white companies to do business with black companies . Which they clearly not interested in doing, that's why government has to force them . They benefited un under apartheid . Know start giving back .

      Jimmy Don - 2013-10-04 13:35

      Give back? are you really that naïve? Level playing field lol

      Beatrix Rode - 2013-10-04 14:20

      ANC = Apartheid. U want to level the palying fields by taking away from what we worked hard for!! We did not steal any companies from u, not like the reverse racism u called BBBBBEEEEEEEE. But like in the past u try and actually use words and laws to leave us and u under the impression that u rectify the injustices of the past

  • Altus Kirsten - 2013-10-04 13:03

    Stop relying on the great companies to compensate you via BEE, but rather start your own company.

      Makhosonke Mqikela - 2013-10-04 13:10

      These QSEs initially have bold business plans but three years down the line are nowhere to be found. The question is why?

  • Willem de Haan - 2013-10-04 13:46

    20 Years down the line and still the poor downtrodden but brilliant free blacks cannot stand on their own feet. Well, I predict that in another 20 years time it will still be the case and thereafter too. If I were a black I would be so ashamed of this that I would vote FF. But this is the story of Africa - they cannot do it alone, they need the white, so to make sure that they get that white help, they make laws to force whitey to give and to give more. 20 years and still dependent! Shame! Perhaps this government could ask their Indian partner in BRICS how they did it all by themself?

      Johan Willem Schoultz - 2013-10-04 17:33

      Jislaaik Willem, 20 jaar, jy's omtrent optimisties!!

  • Nomcebo Ngidi - 2013-10-04 14:39

    I did not stole anything from any whites, I initiated and established a small poultry farming co-op thanks to Dept of Eco Dev for cold storage,gullotine and packaging machines

  • Andile Vanqa - 2013-10-04 14:51


  • Carl J Lotter - 2013-10-04 15:53

    What is SQE again?

  • Mike Peach - 2013-10-04 18:20

    Was there wealth in sa before the so called whitey came here and developed the place.

  • Deon Zeelie - 2013-10-06 21:06

    I dont care how many b's and e's you add, this country is a bloody mess. Reverse apartheid is not the solution to our country's financial well being. It would actually have been great if you did build and develop for the previously disadvantaged. Instead you build a home and hospital for yourselfes. Wake South Africa the ANC is milking everyone black and white

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