B-BBEE Legislation

B-BBEE Knowledge Database

FAQ

  • What is a Competent Person”s Report in SED and why do I need one?

    In the Socio-Economic Development Element, the Verification Methodology (the law which prescribes the minimum standards that verification agencies have to apply when verifying you), prescribes that an Independent Competent Person’s Report must be obtained to confirm that the beneficiaries of the project being supported are black South Africans. This report cannot be from the organisation you are supporting, but from someone independent of this organisation who is competent to declare the percentage beneficiaries that are Black South Africans.

  • Even though I train people I get no points for skills development, why?

    The Skills Development Element has a set of prerequisites which unless you are compliant with, you get ZERO for this element. The pre-requisites are:

    1)Proof of registration with a SETA
    2) Submitted Workplace Skills Plan
    3) Submitted Annual Training Report
    4) Submitted Pivotal Report
    5) Proof of a Registered Skills Development Facilitator
    6) Proof of implementation of priority skills for black people
    7) Copies of EMP201s for the 12 month measurement period to confirm leviable amount

  • Can I spend my Enterprise Development Budget on a supplier?

    The new codes come are clear that you cannot use the same spend twice i.e. you cannot spend R100 on Supplier Development on a supplier and then also claim the same R100 as Enterprise Development Spend. However, there is nothing which stops you from spending an additional R100 on the same supplier as Enterprise Development spend.

  • How do I calculate the sub-race groups (African, Indian, Coloured/Chinese in Management Control?

    The Large Business Management Control Element requires that black people in management are represented as per the sub-race group Economically Active Population targets in the country. This means having to divide the target for the black management category by the EAP percentage for Africans, Indians, Coloureds males and females to obtain the correct representation. This is a complex calculation – Purchase the app today and let it do the hard work for you!

  • The Empowering Supplier Status on the Amended Codes is confusing, what does it actually mean?

    With the new (B-BBEE) Codes you must not only be (B-BBEE) compliant (minimum Level 8), but you must also have a positive Empowering Supplier Status. If you are (B-BBEE) compliant but are not deemed an Empowering Supplier, your certificate is equal to a non-compliant certificate – Please check this status on all your supplier’s certificates.

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Hints & Tips

When you are engaged in the process of a
B-BBEE Verification:

THE NEW AMENDED CODES GAZETTE NO. 36928

Please note that there are some issues in these amended codes that are of concern due to possible errors with some of the calculations. We have therefore opted to follow the guidelines of the Codes and apply a reasonable approach when working with the formulae. The formulae in the Management Control and Skills Development elements have therefore been amended to provide for a reasonable result. Please click below for an explanation of the assumptions made in the application of these formulae:

Assumptions for the Management Control and Skills Development Sub-Race Group formulae
  • Remember that a sample of your claims will be selected, therefore the sample will represent the total claim – if you have problems providing evidence for the selected sample, this will negatively affect your score.
  • Please remember to remove VAT as an expense when making your claims. Failure to do this will result in a 14% error on your claim.
  • The term Measurement period needs to be understood before you submit your claims. A measurement period is the 12 month period that the verification agency is measuring your B-BBEE compliancy. This is usually a company’s financial period. All claims must fall within this period.
  • If your organisation falls within a specific industry where a Sector Code has been issued, you HAVE TO be rated on your sector code, otherwise your certificate will be deemed invalid.
  • Be mindful to obtain your B-BBEE advice from reputable verification agencies and consultants. You will only obtain points on your scorecard if you can provide suitable evidence for your claim.