Half the economy could become BEE noncompliant by May 2015

Written by: Natasha Odendaal

BBBEE Codes

The introduction of the amended Broad-Based Black Economic-Empowerment Codes of Good Practice on May 1, 2015, could result in more than half the economy becoming noncompliant.

The revamped codes were published on October 11, 2013, and the transitional period was initially scheduled to endure for a year until October 10, 2014. However, an extension of six months was awarded in March, offering companies a longer period to adjust to the new regime.

However, black economic-empowerment (BEE) advisory firm EconoBEE CEO Keith Levenstein believed that nine industry sectors, namely construction, tourism, transport, forestry, accounting, information and communications technology, agriculture, finance and property, were at risk of becoming non-compliant with BEE when evaluated against the amended codes.

“If the sector codes are not released in time, businesses will need to follow the amended codes released last October,” he said, pointing out that businesses with a BEE scorecard expiring after May 1, 2015, would have their BEE certificate assessed on the amended codes, based on the data and activities carried out in the year prior to verification.

BEE compliance was a complex and time-consuming process, with many companies unlikely to succeed in adjusting to the amendments on time.

“Based on the new codes, a business currently at level 4 will almost certainly fall to level 6 and, possibly, even further. Management will need to do additional work and activities to retain [the company’s] current BEE status. Training spend, for example, needs to be increased from 3% to 6%,” Levenstein explained.

Those providing training to their employees to earn BEE points would need to speedily reallocate a training budget, select staff and kick off training in a process that was usually spread over 6 to 18 months.

“The BEE points allocation only accrues after the money is spent. The same goes for procurement, socioeconomic development and enterprise development,” Levenstein pointed out.

Further, businesses earning BEE procurement points could face the risk of their suppliers becoming noncompliant, negatively impacting their overall BEE rating.

“Businesses could be caught with a number of suppliers having lost their BEE rating, resulting in a domino effect of downgraded BEE ratings across all the industry sectors,” Levenstein noted.

Courtesy: Creamer Media

 

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2014 EMPLOYMENT EQUITY ROADSHOW SCHEDULE

TURNING OVER A NEW LEAF AGAINST ALL ODDS

Employers or Heads of organisations, Academics, Assigned Senior Managers, Consultative forum members, HR Practitioners, Trade Unions and employees are invited to attend the 2014 Provincial EE Roadshows hosted by the Department of Labour.  See schedule

EE Provincial Roadshow

 

 

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Industry portal launch ‘imminent’, networks revealed

Property Portals

Written by: Andrew Jennings: REB Bulletin

In an article published in Real Estate Business yesterday, Australian real estate agents have overwhelmingly criticized the new fee structure from realestate.com.au. Some real estate networks, independents and franchise groups have decided to unite and take on Australia’s largest real estate portal. Continue reading

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AUDIT REPORT SUBMISSIONS

 EAAB

IMPORTANT NOTIFICATION - 01 July 2014

Dear Principal estate agents and Auditors

For the firms that have a February financial year-end and who have submitted audit reports via audit@eaab.org.za and also at our offices before the deadline of submission of 30 June 2014, please note that we are currently capturing the audit reports on our system and as soon as the report has been captured, you will receive an email confirmation from us. Continue reading

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NOTICE TO: HOUSING OWNERS ASSOCIATIONS (HOAs)

EAAB

1. PURPOSE

To prohibit unlawful practices and promote acceptable standard of conduct within HOA’s in the rending of estate agency services.

Read more HOA Practice Note

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NO EXTENSION OF THE AUDIT DEADLINE FOR 30 JUNE 2014

EAAB

The Estate Agency Affairs Board sent out a notification earlier today, confirming that no extension will be granted for the submission of audit reports.

The audit reports should be submitted to the EAAB via the auditor’s portal on MYEAAB on or before 30 June 2014. http://www.eaab.org.za/myaudit

Read the full notification here.

EAAB Stakeholder communication re Audit 2014

 

 

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ACCUSTOMING OURSELVES WITH THE NEW REVISED CODES AS GAZETTED UNDER BROAD-BASED BLACK ECONOMIC EMPOWERMENT AMENDMENT ACT 46 – 2013

Property Charter Logo

Enhanced recognition for certain categories of black people

Throughout the Codes, various criteria appear which advance the interests of certain categories of Black people. These include:

  • Black women should form between 40% and 50% of the beneficiaries of the relevant Elements of the Scorecard;
  • Black people with disabilities, Black youth, Black people living in rural areas and Black unemployed people form part of the beneficiaries of the relevant Elements of the Scorecard.

 

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REBOSA AGM Chairman’s Opening Address

Andrew Golding Photo

Dr Andrew Golding, REBOSA Chairman

On Friday 20 June, 2014 REBOSA held its first AGM in Johannesburg.  Following is the REBOSA Chairman, Dr Andrew Golding’s Opening Address.

REBOSA AGM Chairman Opening Address

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Special Economic Zones Act Promulgated

Vol. 587 Cape Town 19 May 2014 No. 37664

THE PRESIDENCY

No. 388 19 May 2014

It is hereby notified that the President has assented to the following Act,

which is hereby published for general information:–

Act No. 16 of 2014: Special Economic Zones Act, 2014

49993_37664_act16of2014specialeconzones_19may2014

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ACCUSTOMING OURSELVES WITH THE NEW REVISED CODES AS GAZETTED UNDER BROAD-BASED BLACK ECONOMIC EMPOWERMENT AMENDMENT ACT 46 – 2013

Property Charter Logo

The 5 Elements of the new revised Codes and what they each intend to measure

Element Code Series Reference What each element measures
Ownership 100 Measures effective ownership of entities by Black people.
Management Control 200 Measures the effective control of entities by Black people.
Skills Development 300 Measures the extent to which employers carry out initiatives designed to develop the competencies of Black employees and Black people internally and externally.
Enterprise and Supplier Development 400 Measures the extent to which entities buy goods and services from Empowering Suppliers with strong B-BBEE recognition levels. This element also measures the extent to which enterprises carry out supplier development initiatives intended to assist and accelerate the growth and stability of black enterprises.
Socio-Economic Development 500 Measures the extent to which entities carry out initiatives  that contribute towards Socio-Economic Development or Sector Specific initiatives that promote access to the economy for Black people.

If you would like anyone else to receive this information, send us their email address  to pa@propertycharter.co.zaor call the office  011 880 9918.

 

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