The South African government published revised Broad-Based Black Economic Empowerment (B-BBEE) Codes of Good Practice in October 2012, and requested public comments on the changes by December 2012. The new codes, which will take effect in 2013, include significantly increased targets and penalties for non-compliance. For example, large companies will need to meet targets of 40% black ownership and equity deals, as well as increased targets for skills development, supplier development, and preferential procurement. Companies that do not meet the new compliance levels could lose eligibility for government contracts or to supply companies that work with the government. Immediate preparation will be required to achieve compliance with the more stringent new B-BBEE codes.
McGladrey/AICPA presentation at September 2014 Global Manufacturing ConferenceBrian Marshall
Update on important new accounting and reporting developments over the past year addressing recent technical pronouncements along with accounting projects and proposals from FASB and other standard setters. Topics incude:
- New ASU on revenue recognition
- FASB's recently issued accoutning alternatives for private companies
- Overview of ket, other, new or porposed ASUs
McGladrey/AICPA presentation at September 2014 Global Manufacturing ConferenceBrian Marshall
Update on important new accounting and reporting developments over the past year addressing recent technical pronouncements along with accounting projects and proposals from FASB and other standard setters. Topics incude:
- New ASU on revenue recognition
- FASB's recently issued accoutning alternatives for private companies
- Overview of ket, other, new or porposed ASUs
An exploration of diverse issues that need to be addressed simultaneously to achieve true economic empowerment for the previously disadvantaged in South Africa
Presented during Tshikululu Social Investments' 2011 Serious Enterprise Development workshop.
How do the objectives of enterprise development under B-BBEE codes compare to those in other countries? Dr Woolley will review the basis of ED qualification under the codes; ask how a company
might engage in value-adding ED in a way that aligns with business strategy; and consider what to do, and what not to do, during the implementation of ED.
Why should RA & Fraud Managers rethink the way they manage their business?cVidya Networks
In Digicel's 7th Annual International Business Forum 2013 in Panama, Ms. Efrat Nissimov, cVidya's Director of Product Management, presented “Managing Revenue Risks"
In 2017, there have been key developments regarding transformation in SA, where businesses need to be prepared, or face serious potential risks for their companies.
I have highlighted some of the key challenges affecting companies with regards to B-BBEE, Employment Equity(EE) and Skills Development(SD) in the attached newsletter.
In the latter part of the year, KeyedIn conducted a survey to get an understanding of the challenges and goals of the PMO. We surveyed hundreds of project practitioners from various levels of the organization to uncover some key insights to help moving forward.
Watch the recording of this session and learn how to effectively leverage benchmarks to build a roadmap of efficiency opportunities in your Finance & SSC organization through real-world examples.
Creative Compensation Strategies to Maintain Morale & Retain Talent CBIZ, Inc.
This presentation discusses key compensation strategies to maintain morale and retain talent. This includes *The turnover in the rebounding economy
& steps for designing a market-based compensation system
*Recognition and sustaining high performance through a merit matrix
*Compensation in closely held businesses
For more information, visit http://www.cbiz.com.
The unintended consequences of B-BBEE is Fronting and misrepresentation of BEE status. - President Jacob Zuma.
The new bill seeks to prosecute those who undermine governments plans of economic redress. BEE is now being used to expose corrupt practices in business. It's not corruption unless you commit a crime...well now, there you have it!
Fantastic read...this book may have been titled "living the life we preach" or the "authentic messenger" Preach a Storm, Live a Tornado...lives up to it's provocative title...if we going to preach...let's do it with the passion undergirded by the life we live. Dr. Clyde brings us into magnifying focus of God's mandate for
1. On 5 October 2012, the Revised Codes of Good Practice were published
in the Government Gazette, for public comment. (Notice 800 of 2012,
No.35744.Interested parties have 60 days (until 4 December 2012)
within which to submit comments to the DTI on these revised codes.
Once all comments have been received the Minister will release the
Codes to be implemented in the New Year.
The new Codes for 2013 have huge penalties for not complying. For
example if your company is Generic (Annual Turnover of R35 million
and more) you will be required to comply with 5 elements. Out of
the 5 elements 3 elements are priority elements. The 3 priority
thresholds are Ownership, Skills Development and Supplier
Development (which is Enterprise Development combined with
Preferential Procurement).
The codes become more complex because they expect you to reach a
target of 40% of targets for all the 3 priority elements.
Highlighted in red – Priority Elements
Current Codes NewCodes
Ownership
Target of 25% black participation Target of 40% minimum target of
25% black ownership
10% Equity Deal must be concluded
Penalty for non-compliance Penalty for non-compliance-Generic
No Penalty Drop 2 Levels
Penalty for non-compliance-QSE
Drop 2 Levels
Management Control
Target says the same Top Management, Junior Management
removed.
Employment Equity targets moved to
Management Control
2. Skills Development
Target 3% of Payroll 6% of Payroll
Supplier Development
Preferential Procurement 20points Target 3% NPAT
Enterprise Development 15 40 points
Example: - AGeneric company seeking to qualify to tender for
government work must demonstrate a category 4 compliance level.
Taken at face value, the new codes will immediately reduce non-
compliant companies to level-six status if they do not comply with
any of the minimum requirements will drop 2 levels, thus making them
ineligible for state work or to supply private sector companies
reliant on state work.
Example: - AQSE company (annual turnover between 5-35 million) can
choose 2 priority elements, but ownership is compulsory. If they do
not comply they drop 1 level.
Although the revised codes are only published for comment, it is
clear that changes are now inevitable and it is going to be more
difficult to achieve a high score.
Therefore, it now becomes absolutely vital to prepare for and
achieve a good scorecard before the new codes are finalised.
Your B-BBEE compliance is something that you can no longer shy away
from; let us assist you before the implementation of these new
rules.
The earlier you start the easier; we offer a free evaluation of your
company’s status and will present a clear business plan of what you
need to do to become compliant.
Your B-BBEE certificate may no longer be enough; we can easily
assist you with your Skills development, Procurement and Enterprise
development without any changes to your company ownership.