Racial Codes Approved for Public Comment
Pretoria - Cabinet has approved the revised Broad-Based Black Economic Empowerment (B-BBEE) Codes of Good Practice, 2012 for public comment.
"The revised codes will enhance the implementation of B-BBEE in a meaningful and sustainable manner. The revised codes also contain principles and guidelines that will facilitate and accelerate the implementation of B-BBEE," said Cabinet spokesperson Jimmy Manyi on Wednesday.
He said the purpose of the codes was to assist and advise both the public and private sectors in their implementation of the B-BBEE Act.
Some of the key areas of refinement of the codes include the reduction of the generic scorecard to five elements, with Employment Equity and Management Control being consolidated, and Preferential Procurement and Enterprise Development merged to form a Supplier Development Element.
Additionally, the points for ownership have been broadened to include designated groups in the main points and that thresholds for Exempted Micro Enterprises and Qualifying Small Enterprises (QSE) have been adjusted.
Other areas of refinement are that all companies, except Exempted Micro Enterprises, will be required to comply with the five elements of the B-BBEE scorecard, and revised qualification points for awarding of B-BBEE recognition levels status.
Priority elements have been introduced, namely ownership, skills development and supplier development, and 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, while entities that are more than 50% black-owned will qualify as Level 2.
Others refinements include the updated framework for the accreditation of B-BBEE Verification Agencies to extend to the Independent Regulatory Body of Auditors; Alignment of the B-BBEE Employment Equity elements with the Employment Equity Act and the Skills Development Elements has been aligned to the New Skills Development Strategy and to be outward focused; and that QSEs must comply with all five elements on the scorecard.