General Principles (29)

Yes. All organs of state and public entities need to comply with the Codes and that is done through the specialised scorecard.

Yes, because points are allocated per B-BBEE level which are the same irrespective of which codes the certificate was used.

Through the reports submitted to the B-BBEE Commission, the status of B-BEE in the economy including impact will be measured.

Each sector code has specified scope of work, others such as in the financial services use rely on the where the most/concentrated of revenue is derived to determine its application.

Large companies have to comply with all three priority elements (ownership, skills development and enterprise and supplier development). Qualifying small enterprises have to do only two of which ownership is compulsory and they can choose between skills development and enterprise and supplier development as the second priority element.

Women are regarded as one of the designated beneficiaries for B-BBEE, and forms between 40% and 50% of the relevant elements of the scorecard. There are specific and separate targets for women under Management Control and Enterprise and Supplier Development.

Section 13G (1) of the B-BBEE Amendment Act 46 of 2013 that came into operation on 24 October 20114 requires that all spheres of government, public entities and organs of state must report on their compliance with B-BBEE in their audited annual financial statements and annual reports required under the PFMA.

The BEE Directorate or department cannot prescribe to the Judiciary how to interpret the Act due to the principle of separation of power. The judiciary will follow relevant prescripts when faced with a matter emanating from the B-BBEE Act.

The department always assist by presenting to top management to sensitise them of the importance and value of complying B-BBEE., which needs to be followed by a B-BBEE strategy and implementation plan. The department also assists in this regard.

According to the Court decision, all South African Chinese are beneficiaries under B-BBEE as well as employment equity.

The trumping provision has 12 months transitional period from date the Act came into operation. This provision will come into operation on 24 October 2015.

Deviation principle applies to principles, targets and points.

Yes. As per section 6 (6) of the amended Act, if requested Minister of Trade and Industry may permit organs of state or public entities to specify qualification criteria for procurement and other economic activities which exceed those set in the Codes.

Section 10 (1) of the codes required organs of state and public entities to take into account the relevant Code when issuing licences, issuing grants/incentives, entering into PPPs, determining criteria for preferential procurement and sale of state assets. Further under the Preferential Procurement Policy Framework Act, be the 10 points are for B-BBEE in a 90/10 contract and 20 points in an 80/20 deal. Therefore companies who are B-BBEE complaint have an opportunity to improve their procurement opportunities.

The amended Act ha specified amongst other the following penalties: 10 years imprisonment for misrepresentation, 10% fine of annual revenue, 1 year imprisonment for failure to report misrepresentation and 10 year restriction from doing business with government.

For now at the dti and later at the B-BBEE Commission.

The principle is that Sector Codes are need to exceed the targets in the generic codes, where this is not possible the can request a deviation from Minister of Trade and Industry. Such deviation is not automatic and must be supported by empirical evidence.

The department is currently engaging national treasury to fast track the process.

There is no verification process hence why the deponent binds themselves as to the authenticity of the information.

Transformation plans are merely guidelines on how to implement B-BBEE for a particular sector which government may identify as key to economic transformation. Section 14 (2) of the amended Act empowers Minister of Trade and Industry to issue guidelines on the application of B-BBEE Act.

All sector codes are given until end of October 2015 to align.

The department is currently engaging national treasury and it has committed to have the aligned PPPFA Regulations by September 2015.

The department of trade and industry is the competent authority to interpret the Codes. Further, a Technical Assistance Guideline will be issued to assist the market with interpretation.

Verification agencies can issue certificates under the new Codes except for black EMEs and QSE. These entities only have to obtain sworn affidavit.

Currently a template for EMEs has been issued and for QSEs it will follow in due course but that does not preclude black QSEs from obtaining an affidavit from SAPS or competent authority.

Ownership (1)

Management Control (2)

There are specific targets for women from board participation to junior management and counts for 50% of the overall targets for each sub-category.

If a company operates in more than one province, it will apply the national targets and if it only operates in one province, it will apply the provincial targets.

Skills Development (17)

Yes it is aligned and also seeks to address high graduate unemployment and lack of critical and priority skills in the economy.

Companies need to have a plan where the training meets requirements in the learning programme matrix.

There is no time limit to employment period, but is should be longer employment, for instance, not less than 12 months.

Bursaries awarded to external black people can be recognised provided it’s not conditional. Only two conditions are accepted which is alignment of bursary to period of study and employment upon completion of studies for a period equal to that of the studies.

Companies are required to develop their own tracking tools and can engage SETAs to simulate the current learnership tracking process.

The Department of Higher Education has notified the dti that it is working on the learning programme matrix which is aligned to the National Skills Development Strategy III. A decision was then taken internally that post finalisation of such; the dti will consider aligning the learning programme matrix in the Codes to that from Department of Higher Education.

No. companies will develop one based on their needs.

Foreign training is only recognised if its SAQA approved, if not it will be treated as informal training which falls under Category F or G, and it’s spend will be capped at 15%.

This is training that a company must embark on despite the existence of the Codes, as it is mandated by other pieces of legislation. i.e. occupation and health safety training within the construction sector.

There is no age restriction but more focus must be given to youth.

We use the broad definition provided by the Reserve Bank. It means anyone who currently does not have work and is either seeking employment or has not taken steps to seek employment.

Mode of delivery is different, Category C is only at workspace and category D is either workplace or institution.

This means giving employment to a learner post internship, learnership or apprenticeship training.

SETA’s need to approve Workplace Skills Plans and guide companies with regard to the priority skills.

The learning programme matrix has identified types of training to consider. Further, the element has provided a guide as to other legitimate training costs that can be recognised.

The needs to be a clear distinction as to what is of value, the actual training or related costs. This was done to ensure that companies spend more of core training than related costs in order to add value on the part of the learner.

The training is now for both black employees and external black people; therefore the skills target had to increase to cater for the increase of people to be trained.

Enterprise and Supplier Development (9)

No, enterprise development beneficiaries are entities that will in future become suppliers to the measured entity; therefore they do not have to be within same sector as measured entity.

The 40% subminimum applies to the weighting points per each category; this then means 40% of 25 points for preferential procurement, 40% of 10 points for supplier development, and 40% of 5 points for enterprise development.

This will be a self-declaration in the sworn affidavit.

Such cannot be listed, as they change from time to time.

A company must keep records as is does under the skills development element.

The codes have listed various initiatives that qualify as enterprise development initiatives, for example low interest rate loans, seed funding, training for capacity building etc.

Imports will be excluded due to brand specifications and absence of local manufacturing. However, the company must have an import plan indicating clear objectives, priority interventions, performance indicators and concse implementation plan on how to develop local suppliers. Imports will not be allowed where products have been designated.

It means a company that compliance with the regulatory laws of the country which are necessary for all companies operating in the economy such as Tax laws, labour Laws etc.

This is the plan indicated above.