Transcript Document

BROAD-BASED BLACK ECONOMIC EMPOWERMENT
PRESENTATION
FOR
EMERGING-CONTRACTORS
CONFERENCE
27 -28 MAY 2010
SIXTUS SIBETA
B-BBEE CODES OF GOOD PRACTICE
B-BBEE ELEMENTS:
Ownership
 Management control
 Employment equity
Skills development
 Preferential procurement
 Enterprise development
 Socio-economic development
B-BBEE CODES OF GOOD PRACTICE
As per section 10 of the B-BBEE Act, government must apply the codes when entering into
decision affecting the following areas:
Procurement
Licensing and concessions
 Public private partnership (PPPs)
 The sale of state-owned entities
CONSTRUCTION TRANSFORMATION CHARTER
On section 9 of B-BBEE ACT 53 of 2003
Aims and objectives are, to:
Change in racial, gender composition of ownership, management and control in the sector
 To advance the employment equity in the sector.
 To provide monitoring & evaluation to end malpractices (Fronting)
 To implement skills development to empower women and black people in general: learnership, and
technical and management skills
 Increase procurement of goods and services from B-BBEE enterprises
 Promote the sustainable of micro, medium and small B-BBEE enterprises
HOW?
B-BBEE CODES OF GOOD PRACTICE
Generic Scorecard,
with all seven elements
Other
Companies
(Exceed
Revenue R35m)
Small Enterprise Scorecard,
Select four of the seven elements
All elements weigh 25%
Qualifying
Small Enterprise
(Turnover btw R5m – R35m)
Micro Enterprises
(Turnover R 5m and below)
Indicators adapted to small
enterprises
Micro Exemption,
Automatic Level 4
Recognition
B-BBEE CODES: GENERIC SCORECARD
ELEMENT
WEIGHTING
COMPLIANCE TARGETS
OWNERSHIP
20 POINTS
25% +1
MANAGEMENT CONTROL
10 POINTS
(40% TO 50%)
EMPLOYMENT EQUITY
15 POINTS
(42% TO 80%)
SKILLS DEVELOPMENT
15 POINTS
3% PAYROLL
PREFERENTIAL PROCUREMENT
20 POINTS
70%
ENTERPRISE DEVELOPMENT
15 POINTS
3% (NPAT)
SOCIO-ECONOMIC DEVELOPMENT
5 POINTS
1%(NPAT)
TOTAL
100 POINTS
Construction-generic scorecard
Element
Weighting
Contractors
B-BBEE Codes
Built Environment
Professionals
OWNERSHIP
25
25
20
MANAGEMENT CONTROL
10
10
10
EMPLOYMENT EQUITY
10
10
15
SKILLS DEVELOPMENT
15
20
15
PREFERENTIAL PROCUREMENT
20
20
20
ENTERPRISE DEVELOPMENT
15
10
15
SOCIO-ECONOMIC
DEVELOPMENT
5
5
5
CODE 000: BEE STATUS
LEVEL
BEE SCORE
BEE RECOGNITION LEVEL
1
100
135%(E.G. R1=R1.35)
2
85~100
125%
3
75~85
110%
4
65~75
100%(E.G.R1=R1)
5
55~65
80%
6
45~55
60%
7
40~45
50%
8
30~40
10%
30
0%(R1=R0)
NOT COMPLIANT
Why the need for B-BBEE?
 For B-BBEE to work properly: consistency, visibility and clearer direction.
 B-BBEE to date have been characterized by:
 Stagnation, no growth from EMEs to QSEs, ultimately Large Entities.
Playing ‘locally’ with high B-BBEE activities in big cities, leaving out rural areas and townships
Lack of understanding leading to inconsistent application and appreciation of B-BBEE
Lack of implementation guidelines resulting in ‘most going to few’, fronting or ‘sham’ transactions
Lack of underlying economic substance to many BEE transactions
 Deafening silence of the target group ‘voices’ on BEE issues, no organized approach.
Thank you