Latest News - Helping you and the Economy Grow

10Nov, 2023

Unlocking the Dynamics of Employment Equity

Unlocking the Dynamics of Employment Equity: Join Our Workshop with Dr. Muriel Mushariwa

We are thrilled to announce an exciting opportunity for all individuals and organizations passionate about fostering equality and inclusion in the workplace. Join us for our upcoming Employment Equity Workshop, “Unlocking the Dynamics of Employment Equity,” taking place on November 30th, 2023. Led by the distinguished Dr. Muriel Mushariwa, this workshop promises to be an eye-opening exploration of the Employment Equity Act and its imminent amendments, offering invaluable insights and strategies for success.

Why Attend Our Employment Equity Workshop? At the heart of this event is our dedicated instructor, Dr. Muriel Mushariwa, whose illustrious career as a Senior Lecturer of Law is marked by a profound commitment to advancing Employment Equity. Dr. Mushariwa’s expertise extends across a spectrum of skills, from lecturing and public speaking to legal writing, analytical prowess, and policy analysis. With an LLB and LLM from the University of Kwazulu-Natal, Pietermaritzburg and a PhD from the University of Witwatersrand, her academic accomplishments underscore her dedication to legal excellence.

Dr. Mushariwa is not just an academic; she’s a consultant specializing in Employment Equity, Skills Development, and Broad-Based Black Economic Empowerment. This unique blend of academic knowledge and real-world experience equips her to offer participants practical guidance on navigating the complexities of Employment Equity.

What to Expect: Workshop Highlights During this workshop, participants can look forward to an engaging and enlightening journey through the following key topics:

Overview of the Employment Equity Act: Gain a solid understanding of the foundational principles and historical context of the act.
Impact of the Proposed Employment Equity Amendment Act: Explore the proposed amendments and their implications for organizations.
Implementation of the Employment Equity Act: Receive practical strategies for successful implementation and compliance.
Linking Employment Equity to Broad-Based Black Economic Empowerment (B-BBEE) Strategy: Discover the interplay between Employment Equity and broader economic empowerment goals.

Unlock the Power of Knowledge This workshop is not just a learning opportunity; it’s a chance to gain knowledge that empowers you to be a change-maker in your organization. Dr. Muriel Mushariwa’s expert insights, eloquent communication, and extensive knowledge will equip you to navigate the evolving landscape of Employment Equity with confidence and success. Whether you’re an HR professional, a business owner, or someone passionate about equality, this workshop is designed to provide you with actionable takeaways.

Reserve Your Spot Don’t miss this unique opportunity to learn from a true expert in the field. Reserve your spot today and take the first step toward becoming a genuine advocate for Employment Equity. Join us on November 30th, 2023, and embark on a transformative journey towards creating a more equitable workplace.

Stay connected with us for more updates, resources, and insights to prepare you for the workshop. We look forward to your participation and to collectively driving positive change in the world of Employment Equity.

21Sep, 2023

Crucial Update for EE Submissions

If you are an employer in South Africa, here is an important heads-up! The 2023 Employment Equity (EE) reporting period has arrived, and there is a crucial update you need to be aware of.

As communicated by the Department of Labour, the EE Amendment Act, No. 4 of 2022 has not yet come into effect, which means that all designated employers, regardless of size (yes, even those with 1-49 employees), need to submit their 2023 EE Reports (EEA2 and EEA4 forms) using the current Employment Equity Act, 1998 (EEA).

Key Dates to Mark:

Submission period opens on 1 September 2023, offering both manual and online options.
Manual EE submissions must be in by 2 October 2023.
For online submissions, the deadline is 15 January 2024 (midnight).

Just so you know, missing the 15 January 2024 (midnight) deadline could lead to enforcement actions under the EEA. Your organisation might also be left out of the Employment Equity Public Register for 2023.

We are here to make it easy for you, choose EconoBEE for a stress-free EE submission process!

Our expertise and commitment to staying updated on regulations ensure you meet your compliance needs effortlessly. Let us make your EE submission a breeze.

Reach out to EconoBEE on 011 483 1190 and talk to a consultant at your convenience.

3Sep, 2023

Exciting News! – We’re thrilled to announce a significant milestone in our journey

Our unyielding commitment to transformation has led us to achieve a remarkable B-BBEE Level 1 status. But that’s not all – we have even more fantastic news to share. We’re excited to inform you that EconoBEE is now proudly 100% black-owned, marking a monumental shift towards greater transformation & inclusivity. To celebrate these achievements, we would like to invite our valued clients, esteemed consultants, visionary business owners, and dedicated B-BBEE compliance professionals to an exclusive and enriching workshop. Join us at our offices in Johannesburg for a dynamic – and complimentary – seminar where we’ll delve into the intricacies of B-BBEE and its pillars.

This event aims to refresh and enhance your understanding of B-BBEE dynamics, equipping you with invaluable insights to navigate the evolving landscape. Let’s continue shaping a more inclusive and empowered business environment together. RSVP now for this not-to-be-missed opportunity to grow and learn together.

Now a little bit about our 3 directors:

Allan Maphanga

Allan is an accomplished entrepreneur and corporate manager who has cultivated significant skills through hard work and dedication. Since joining the business in 2016, Allan’s career has soared to greater heights, progressing from junior ranks within the EconoBEE structure to assuming a directorial role within the firm. As an experienced B-BBEE Consultant with adept people management skills, he specializes in coordinating and overseeing various teams and activities within the company.

Mr. Maphanga possesses a profound understanding of the South African B-BBEE ecosystem and provides consultation to diverse clients across the entire B-BBEE spectrum. Over time, he has emerged as a thought leader on B-BBEE legislation and its interpretation. Moreover, he maintains excellent relationships with the Department of Trade and Industry (DTI) and the B-BBEE Commission, positioning him at the forefront of advising and guiding some of South Africa’s largest firms in their pursuit of achieving B-BBEE goals. As an added value to the company, Allan offers on-the-job mentorship and training to junior consultants within the EconoBEE business.

Dr Muriel Mushariwa

Muriel is a highly qualified and experienced academic who has spent many years in formal academia, both in research as well as lecturing. Armed with a Phd in Law (Affirmative Action) and a Master’s degree in law, Muriel has made a successful transition into the corporate and business world having joined EconoBEE in February 2019. She is one of the leading minds in South Africa within the B-BBEE and transformation industry and has provided independent opinions in respect of several B-BBEE related rulings. She further provides strategic business and management consulting to small, medium and large corporates on various aspects relating to Black Economic Empowerment, transformation and inclusivity. This includes Employment Equity, Skills Development, B-BBEE Strategy, B-BBEE Legislative Codes as well as B-BBEE Consultation and Verification. Muriel also lectures at Wits University on the subject of B-BBEE and transformation and has been featured in various media publications as well as appearing on television to discuss the critical importance of B-BBEE, its various applications across the different business sectors and the practical implementations required to transform the business landscape of South Africa.

Ndivhuwo (“Ndi”) Rambau

Ndi’s journey with EconoBEE commenced in 2015, joining as a junior team member in the data management and client consulting division. With a qualification in Financial Management and an unwavering ‘can-do’ attitude, Ndi embarked on a remarkable trajectory within EconoBEE, steadily ascending the corporate ladder over the years. This remarkable progression culminated in Ndi’s current roles as the Operations Director and Chief Operations Officer at EconoBEE. In these capacities, Ndi dedicates his time to collaboratively working with fellow executives and senior management, charting strategic growth objectives for the company. His responsibilities encompass a wide spectrum, including conducting strategic financial analyses, managing technical strategies, and ensuring efficient operational implementation.

Ndi boasts a profound comprehension of the intricacies within the South African B-BBEE ecosystem, coupled with an acute awareness of the essential B-BBEE requisites that our clients need to adhere to.

6Aug, 2023

Transforming the Property Sector: Insights from Dr. Muriel Mushariwa

“The property sector is one of the least transformed sectors almost 30 years into democracy,” says Dr. Muriel Mushariwa, our esteemed Executive Director at EconoBEE, a management consultancy specializing in B-BBEE, skills development, and employment equity.

Dr. Mushariwa’s valuable contributions to the 2023 Sanlam Gauge Report shed light on critical areas for improvement. While the property sector has made some progress, there remain challenges in achieving true transformation. Read her comments here

Join Dr. Muriel Mushariwa and the EconoBEE team as we call for increased empowerment and opportunities for historically disadvantaged individuals in the property sector. Together, let’s work towards a future where the industry is inclusive, diverse, and representative of all South Africans.

Stay tuned for the full report on our website, where Dr. Muriel Mushariwa’s insights and contributions will be highlighted (on page 75 and 76 of that report). Let’s take steps towards a truly transformed property sector that benefits the entire nation. #TransformationMatters #EconoBEE #PropertySectorTransformation #SanlamGaugeReport #EmpowermentInProperty

2Aug, 2023

Excerpts from the 2023 Sanlam Gauge Report

5Jul, 2023

Empowering Your Business Through B-BBEE Workshops and Training

Today, we want to shed light on the importance of B-BBEE (Broad-Based Black Economic Empowerment) workshops and training, and why partnering with EconoServices for comprehensive training can drive transformative change within your organization.

Why B-BBEE Workshops and Training Matter:

B-BBEE is a crucial framework for promoting economic transformation and equality in South Africa. It serves as a powerful tool to address historical inequalities and promote meaningful participation and empowerment of previously disadvantaged individuals and communities. To fully grasp the legislation, codes of good practice, and compliance requirements, it is essential for businesses to invest in workshops and training programs. This knowledge equips your team with the tools to navigate the complexities of B-BBEE effectively and contribute to a more inclusive economy.

At EconoServices, we understand the significance of staying up-to-date with B-BBEE requirements. Our workshops and training programs are designed to provide comprehensive knowledge and practical insights that will enable your organization to implement successful B-BBEE strategies and achieve your transformation goals.

Benefits of Choosing EconoServices for Training:

Comprehensive Training
Customized Approach
Expert Facilitators
Empowered Pillar Champions
Enhanced Compliance
Competitive Advantage
Ongoing Support

For more information on benefits and other pertinent please click here

In conclusion, partnering with EconoServices for comprehensive training will equip your team with the knowledge, skills, and confidence to drive positive change, meet compliance requirements, and gain a competitive advantage.

Take the first step toward empowering your business today. Reach out to us on 011 483 1190 to learn more about our tailored training programs and how EconoServices can support your B-BBEE journey. Together, we can make a difference and contribute to a more equitable and prosperous South Africa.

6Jun, 2023

Employment Equity: More on Sectoral Targets

We recently announced the changes that have been brought about by the Employment Equity Amendment Act 4 of 2022 in April 2023.

The proposed Sectoral targets have since been announced for public comment. This means that once finalized designated employers will need to amend their Employment Equity plans to be aligned with the new Sectoral targets.

There have been several criticisms leveled at the new Sectoral targets, one of which are that it may results in quotas and is not reflective of the current state of representivity in certain industries.

It is important to note that these sectoral targets are likely to be fine tuned after the public comment, but it is important for designated employer to look at how their employment equity planning will be impacted by the sector targets.

We will continue to keep you informed about the effective date of these amendments once it is proclaimed by the President. Should you require more detailed explanations and information about these key amendments, please contact our Business Development Team on 011 483 1190

4May, 2023

ESD Interview with Dr Mushariwa and a brief look at MAC Sector Codes

ESD Interview with Dr Mushariwa

Dr Muriel Mushariwa from EconoServices and Zevoli Growth Partners sat down to discuss the challenges faced by companies in fulfilling Enterprise and Supplier Development programmes that are impactful and value adding.

EconoServices is committed to providing value-added assistance to our clients that fulfils the remit of Enterprise and Supplier Development programmes and Zevoli Growth Partners seeks to create a user-friendly app that assists companies to monitor and implement their ESD hassle free.

Contact us on 011 483 1190 or info@econobee.co.za to find out how we can assist you with Enterprise and Supplier Development.

Fireside Chat Episode 1

A brief look at MAC Sector Codes

As the meaning of Turnover in the Marketing, Advertising and Communications (MAC) codes is not the same as other sector codes, there is a debate on how we define cost of sales due to the very different ways in which MAC sector clients operates.

Turnover – is defined as total sales less cost of sales.

Cost of sales is restricted to third party costs that result in the execution of ideas on which agencies earn remuneration

An invitation notice to the public and interested stakeholders to provide inputs to review the current MAC Sector Code has been published in a previous government gazette – EconoBEE has answered this call and submitted our response to this notice and we will keep our clients informed of any new developments on this front. It is hoped that the MAC Sector Council will soon provide clarity on this issue.

13Apr, 2023

Employment Equity Bill Signed into Law on 12 April 2023!

Hot off the press: President Cyril Ramaphosa has signed the Employment Equity Bill into law on Wednesday (12 April)!

This is big news for companies with fewer than 50 employees. They will no longer be designated employers (regardless of turnover) and therefore won’t need to meet EE compliance criteria or submit annually.

These amendments have been introduced with the aim of giving the Employment and Labour Minister the ability to regulate sector-specific EE targets and compliance criteria to issue EE Compliance Certificates (which are necessary for companies wanting to do business with the State).

All companies with more than 50 employees will need to submit employment equity plans addressing the targets (amongst other criteria) and annually submit reports to the Department of Employment and Labour. Designated Employers wishing to do business with the State will be required to produce a certificate of compliance from the Labour department.

The Department is also in the process of increasing the number of labour and health inspectors in order to monitor and enforce compliance as the law now obliges inspection of workplaces and issuing of compliance orders to ensure the envisioned changes actually happen.

Companies must also keep themselves updated with changes to the National Minimum Wage Act (and amendments), as the compliance certificate mentioned above not only deals with compliance to the EE Act and its objectives, but also confirms that these companies do pay their employees equal to or more than the national minimum wage.

All in all, these changes will help ensure that suitably qualified people from designated groups have equal employment opportunities and are represented at all occupational levels in the workplace. So, get ready to embrace the new regulations – they’re coming your way!

Do you need help in navigating these new changes?

Contact EconoBEE today on 011 483 1190!

6Mar, 2023

Navigating WSP & ATR in 2023!

The deadline for submitting your annual Workplace Skills Plan (WSP) and Annual Training Report (ATR) is fast approaching! These submissions are mandatory if your payroll exceeds R500 000pa and you also pay the skills development levy. WSP/ATR submissions are to be made annually to the relevant SETA before the deadline of 30 April each year.

Submitting has many benefits for measured entities. Firstly, it allows you to claim back a mandatory grant of 20% of the skills development levy. Secondly, it enables you to identify skills gaps between the skills required for a job and the skills that your employees actually possess. This will enable you to implement/facilitate training to minimize these gaps and to apply for discretionary grants to help address scarce skills shortages identified in a particular industry.

Keep in mind, skills development is a priority element on the B-BBEE scorecard. Failure to meet the 40% sub-minimum will result in the discounting principle being applied. This means that submitting your WSP/ATR is essential for scoring on the skills development element. If you encounter any challenges or do not have time to do the submissions, EconoBEE’s qualified experts can provide assistance to ensure that you remain compliant as a measured entity.

So, contact us now on 011 483 1190 or email us at info@econobee.co.za and let us get these submissions done!

2Feb, 2023

B-BBEE Planning and a Look at the Transport Sector Codes

B-BBEE Planning

With the first month of 2023 officially behind us, for companies with their financial year-end in December, it may seem that there is still a lot of time to plan and conduct B-BBEE activities, however, we all know just how quickly “time flies”, so before it becomes a mad dash, we encourage you to begin your planning and activities now!

Not sure where to begin? Contact us now on 011 483 1190 to show you how our revolutionary managed service has helped thousands of clients implement sustainable B-BBEE activities in a way that makes perfect business sense!

Quick Look at the Transport Sector Codes

The Transport Sector Codes was first published in 2009 and is now one of the fastest growing industries in the country with sub-sectors like the Bus Commuter and Coach Services, Road Freight, Maritime, Rail, Domestic Aviation and Forwarding & Clearing.

With over 14 years of existence, it is still the only sector that was never repealed, and entities classified within this sector are still measured on the 2007 Codes of Good Practise and so have not had to endure the more stringent amendments to the various codes; such as the priority elements and the discounting principle.

Although it may seem as if transport entities are having it easy, that is not always the case. Unlike the codes of good practise, there are no automatic levels/Affidavits for companies with no black ownership which compels compliance. Choosing 4 elements out of the 7 may seem like an easy task to do, but it requires experienced B-BBEE specialists to help come up with cost-effective methods to ensure transformation suits your organisations needs.

Contact us on 011 483 1190 or email us info@econoservices.co.za to help you come up with innovative transformation strategies that make business sense.

30Nov, 2022

Recent Constitutional Court Ruling and what this means for B-BBEE in 2023!

The Constitution of South Africa is the highest law in the land. The Constitution places an obligation on the State in terms of section 9 (the equality clause) to specifically “redress the inequalities of the past.” This is the aim of all transformative legislation from the Employment Equity Act to the Skills Development Act and Broad-Based Black Economic Empowerment Act, amongst others.

In terms of section 217 of the Constitution, the Constitution requires procurement by organs of state and statutory institutions to be fair, equitable, transparent, competitive and cost-effective and implemented in a manner which seeks to protect or advance previously disadvantaged persons. S 217 (2) allows organs of state to implement procurement policies, providing for categories of preference to advance or protect persons disadvantaged by unfair discrimination (“HDIs”). S 217 (3) provides for the enactment of legislation to prescribe a framework within which the procurement policy referred to in S 217(2) must be implemented.

The ruling by the Constitutional Court has forced the government to review both the PPFA Act and its regulations to ensure alignment with the Constitutional mandate stated above and the B-BBEE Act. This does not invalidate the B-BBEE act. The framework of the B-BBEE and how it’s practicable is clear and therefore not affected by the recent constitutional ruling.

This is not the end of B-BBEE as debated in the media recently. The Constitutional mandate to transform the economy still remains! The Public Procurement Bill is set to be introduced in 2023: This will provide a new framework of government procurement, with each department creating its own procurement framework work that must still be in line with the Constitutional mandate and the B-BBEE Act.

It does not mean B-BBEE is no longer important but rather the setting of new objectives, and so companies should still be compliant to the B-BBEE Act and its objectives. We continue to advise our clients to remain compliant in terms of the specific codes applicable to them, until greater clarity is given on the framework within which public procurement specifically will change. Procurement between private companies is still driven by the objectives of the B-BBEE Act.

The key here, is to implement activities that make business sense! Do you see B-BBEE as a grudge purchase? Or do you want to make a genuine difference in South Africa and still grow your business? Contact us now to show you how our revolutionary managed service has helped thousands of clients implement sustainable B-BBEE activities in a way that makes perfect business sense!

Being one of the oldest B-BBEE consultancies, we have seen all the changes to the legislation and been there through it all. With success stories of skills development and enterprise & supplier development, we know that we can give you strategic advice that can be implemented within your business.

Looking forward to growing our economy and your business, one step at a time in 2023!!

5Nov, 2022

Amended Construction Sector Codes Affidavits Explained

As per the Amended Construction Sector Code, gazetted on 1 December 2017 under Gazette no. 41287, an entity that qualifies for measurement under the Construction Sector Code, is measured either as a BEP (Built Environment Professional) or a Contractor in respect of targets, weightings and methodology.

The qualification criteria for an Exempt Micro Enterprise (EME) and a Qualifying Small Enterprise (QSE) are different for BEP’s and Contractors:

Contractors:

EME – Enterprise with a total annual revenue of R 10 million or less.
QSE – Enterprise with a total annual revenue of more than R 10 million but less than R 50 million.

BEP (Built Environment Professionals):

EME – Enterprise with a total annual revenue of R 6 million or less.
QSE – Enterprise with a total annual revenue of more than R 6 million but less than R 25 million.

Only EME’s with an annual revenue of less than R 3 million (for Contractors) and less than R 1.8 million (for BEP’s) are not required to have a SANAS accredited B-BBEE Verification Certificate and may present an Affidavit or Certificate issued by CIPC in respect of their Ownership & Annual Revenue.

A company must ensure that they use the correct Affidavit template when completing an Affidavit, as there are numerous templates for each sector.

The entity must identify where more than 50% of their revenue is generated and according to the outcome, they can determine whether they qualify as a BEP (Built environment Professional) or Contractor.

The EME’s as mentioned above are not subject to the discounting principle and therefore do not have to comply with the 40% sub-minimum requirements for the QSE Skills Development element.

EME’s with an annual turnover of more than R 3 million but less than R 10 million (for Contractors) and more than R 1.8 million but less than R 6 million (for BEPs) must obtain a SANAS Accredited B-BBEE Rating Certificate and are subject to the QSE Skills Development element (40% sub-minimum requirement).

An Entity that qualifies as an EME, with the Black Ownership percentages as indicated below, is deemed to have the following B-BBEE Status Levels:

If less than 30% Black Owned, Level 5 B-BBEE Status.
At least 30% Black Owned but less than 51% Black Owned, Level 4 B-BBEE Status.
At least 51% Black Owned but less than 100% Black Owned, Level 2 B-BBEE Status.
If 100% Black Owned, Level 1 B-BBEE Status.
EME’s with less than 100% Black Ownership can enhance their B-BBEE Status by way of one of the following three criteria:
Obtain measurement in terms of the QSE Scorecard.
Obtain measurement in terms of the Skills Development expenditure category of the QSE Scorecard and only if full points (excluding the bonus points) are achieved, the B-BBEE status level will be enhanced by one Level.
Obtain measurement in terms of the Supplier Development expenditure category of the QSE Scorecard and only if full points are achieved, the B-BBEE status level will be enhanced by one Level.

If an EME achieved full points for both Skills Development & Supplier Development as mentioned above, the company can be enhanced by two B-BBEE status levels.

An Entity that qualifies as a QSE, must be rated on all 5 elements as per the Amended Construction Sector QSE Scorecard.

A QSE can qualify for enhanced recognition if the following Ownership percentages are achieved (calculated by applying the flow-through principle):

At least 51% Black Owned but less than 100% Black Owned, Level 2 B-BBEE Status.
If 100% Black Owned, Level 1 B-BBEE Status.
A QSE entity that is at least 51% Black Owned or 100% Black Owned must comply with the QSE Skills Development element (40% sub-minimum) or that company will be discounted by one Level.

It is important to note that the Black Ownership as stated above, must be calculated by applying the Flow-Through Principle to qualify for the automatic B-BBEE status levels as indicated above.

As for the EME’s, a QSE Entity with at least 51% Black Ownership can be enhanced by one level if they achieve full points (excluding bonus points) for Skills Development as per the QSE Scorecard or achieves full points for the Preferential Procurement & Supplier Development element as per the QSE scorecard.

Want more information about the amended construction sector codes and what this means for your B-BBEE Scorecard? Contact EconoBEE now to help guide you with cost effective strategies to maximise your scorecard and ensure your compliance to the objectives of the B-BBEE Act.

29Sep, 2022

Labour Law and Transformation: EconoServices does it all!

Running a successful business requires you, as the business owner, to not only manage your clients, but also your staff.

Labour law is a constantly evolving and changing area of staff management and it is crucial that companies put in place policies and procedures that are updated and aligned to the current law.

EconoServices has seen the need within our clients, to provide this HR service and so we are pleased to announce our new service offering!

We are now able to provide training and consulting services with regards to:

Basic Conditions of Employment Act
Labour Relations Act
Employment Equity Act
Compensation for Occupational Injuries Act.

So, please contact us today and let us help you with all of your transformation needs!

30Aug, 2022

Employment Equity Submissions

Can you believe that it is Employment Equity Submission time again?!!

The submission window opens on 01 September 2022

Employment Equity Submissions is an annual requirement of all designated employers as per the Employment Equity (EE) Act.

The EE Act came into being in 1998 and its purpose is to promote equal opportunity and fair treatment in employment through the elimination of unfair discrimination, implementing affirmative action measures to redress the disadvantages in employment experienced by designated groups and to ensure their equitable representation in all occupational levels in the workforce.

The Employment Equity Amendment Bill is expected to be released in September 2022, as this is when the current workforce equity plans, set by employers themselves, will elapse and it is envisaged that the labour minister would then set new five-year targets in terms of the new law as well as introduce additional changes.

All designated employers must ensure that online submissions are done before the deadline, and the scope of the submissions must comply with any potential changes resulting from the amendments.

Unsure if you are a designated employer or what is expected from your company in terms of the submissions or the amendments? Contact us on 011 483 1190 or email us info@econoservices.co.za to help you navigate these changes!

We will also be hosting online workshops regarding Employment Equity Submissions, please contact us for more information and to book your seat.

1Aug, 2022

Codes and other Legislative Downloads

Download government BEE, Employment Equity and Labour Relations resources directly from our website. These include the draft and amended codes. Contact us for expert advice!

Draft Legal Sector Code (Draft LSC) B-BBEE Gazette 47061_NOTICE 1165 OF 2022_22072022	Download Now
Clarification to the Youth Employment Service Initiative Practice Note of 2019 (Gazette 41975) – Youth Employment Service Initiative The Broad-Based Black Economic Empowerment Codes of Good Practice for all Measured Entities	Download Now
Draft Regulations – ICT Sector Code Draft regulations in respect of the limitations of control and equity ownership by historically disadvantaged groups (HDGS) and the application of the ICT Sector Code	Download Now
Draft Tourism B-BEE codes Amended Code Series TSC000: Framework for Measuring Broad-Based Black Economic Empowerment in the Tourism Sector. Statement TSC000: General Principles and the Large Enterprises Scorecard	Download Now
The General Principles for Measuring Enterprise and Supplier Development, Amended Code Series 400, Statement 400 – Government Gazette No 42496 Replaces the Amended Code Series 400, Statement 400 within Gazette 36928. Amended Code Series 400: Measurement of the Enterprise and Supplier Development Element of the B-BBEE. Statement 400: The General Principles for Measuring Enterprise and Supplier Development	Download Now
Amended Codes of Good Practice – Schedule 1 Interpretation and Definitions – Government Gazette No 42496 Interpretation and Definitions to be used to interpret the Amended Codes of Good Practice – Government Gazette No 42496	Download Now
General Principles and the Generic Scorecard, Amended Code Series 000, Statement 000 – Government Gazette No 42496 Replaces the Amended Code Series 000, Statement 000 within Gazette 36928 Amended Code Series 000: Framework for Measuring B-BBEE. Statement 000: The General Principles for the Generic Scorecard	Download Now
General Principles for Measuring Skills Development, Amended Code Series 300, Statement 300 – Government Gazette No 42496 Replaces the Amended Code Series 300, Statement 300 within Gazette 36928 Amended Code Series 300: Framework for Measuring B-BBEE. Statement 300: The General Principles for Measuring Skills Development	Download Now
Draft Chartered Accountancy Charter Chartered Accountancy Charter has been gazetted in draft for 60 days public comment. The scope of the charter affects all companies who employ South African Institute of Chartered Accountants trainees and members of SAICA training programmes	Download Now
BBBEE ACT B-BBEE Act as amended in 2013	Download Now
Codes of Good Practice Generic codes followed by all entities that do not belong to a sector code	Download Now
QSE Amended Codes Codes followed by Small Enterprises with a Turnover greater than10 million but less than 50 million	Download Now
Amended ICT Codes Set of Codes followed by companies belonging to the Information Communications Technology (ICT) Sector	Download Now
ICT Clarification Statement Statement issued by the ICT Council clarifying the effective date of the ICT Sector codes	Download Now
Draft MAC Charter Draft codes for companies belonging to the Marketing, Advertising and Communications (MAC) Industry	Download Now
MAC Charter Final Sector codes for companies belonging to Marketing, Advertising and Communications Industry	Download Now
Draft Tourism Codes Draft Sector codes for companies belonging to the Tourism Industry	Download Now
Tourism Charter Final Sector codes for companies belonging to the Tourism Industry	Download Now
Draft Amended construction Codes Draft Sector codes for companies belonging to the Construction sector	Download Now
Amended Construction codes Final Sector codes for companies belonging to Construction Industry	Download Now
Draft Amended Financial Sector Codes Draft Sector codes for companies belonging to the Financial Sector	Download Now
Amended Financial Sector Codes Final Amended codes Document for companies belonging to Financial Sector Codes	Download Now
Draft Agri BEE codes Draft Set of Codes for Companies belonging to Agricultural Sector Codes	Download Now
Amended Agri BEE Codes Final Amended codes Document for companies belonging to Agricultural Sector Codes	Download Now
Draft Aligned property Sector Codes Draft Set of Codes for Companies belonging to Property Sector	Download Now
Amended Property Sector Code Final Amended codes Document for companies belonging to Property Sector Codes	Download Now
Draft Amended Forest Sector Code Draft Set of Codes for Companies belonging to Forestry Sector	Download Now
Amended Forest Sector Code Final Amended codes Document for companies belonging to Forestry Sector Codes	Download Now
Draft Amended Transport Codes Draft Set of Codes for Companies belonging to Transport Sector Code	Download Now
Draft Mining Charter Draft Mining Charter applicable to Mining and related companies	Download Now
Mining Charter Gazetted Mining Charter applicable to Mining and or related companies	Download Now
Defence Industry notice Being the Notice on the intention of the DTI to establish Defence Industry	Download Now
Draft Defence Industry Codes Draft Sector codes for companies belonging to the Defence Industry	Download Now
The Preferential Procurement Policy Framework Act (PPPFA) “Tender Act” used by Government to award Tenders	Download Now
The Draft Preferential Procurement Policy Framework Act (PPPFA) “Tender Act” used by Government to award Tenders	Download Now
Draft verification Manual Draft verification manual	Download Now
Threshold for Major B-BBEE transactions Gazette for the registration of all B-BBEE transactions exceeding R25 Million	Download Now
Employment Equity Act, No. 55 Of 1998 EE Act 1998	Download Now
EMPLOYMENT EQUITY ACT, 1998 (ACT 55 OF 1998 AS AMENDED) EMPLOYMENT EQUITY REGULATIONS, 2014 EE Act ammended 2014	Download Now
Act No. 47 of 2013: Employment Equity Amendment Act, 2013 eea_amend2014 01	Download Now
PROCLAMATION Employment Equity Amendment Act, 2013: Commencement Proclamation notice of the effective date of Amended EEA published 25 July 2014 01	Download Now
Code of Good Practice on HIV and AIDS and the World of Work 35435_gon451	Download Now
CODE OF GOOD PRACTICE: KEY ASPECTS OF HIV/AIDS AND EMPLOYMENT CGP – HIV & AIDS	Download Now
Code of good practice: Preparation, implementation and monitoring of employment equity plans CGP – Employment Equity Plans	Download Now
Code of Good Practice on the Integration of Employment Equity into Human Resource Policies and Practices CGP – Integration of EE into HR	Download Now
Code of Good Practice on the Handling of Sexual Harassment Cases in the Workplace CGP Handling of Sexual Harassment	Download Now
Code of Good Practice: Key Aspects on the Employment of People with Disabilities CGP Key Aspects on the Employment	Download Now
Code of good practice: Preparation, implementation and monitoring of employment equity plans Code of Good Practice – Prep, Implement & Monitor Plans	Download Now
Code of Good Practice on Equal Pay/Remuneration for Work of Equal Value Code of Good Practice – Equal Work	Download Now
CODE OF GOOD PRACTICE ON KEY ASPECTS OF DISABILITY IN THE WORKPLACE DRAFT FOR PUBLIC COMMENTS CoGP on Disability 19 April 2001	Download Now
Draft code of good practice on the preparation and implementation of employment equity plan Code of Good Practice_sept2016 EE	Download Now
Amended Code of good practice: Preparation, implementation and monitoring of employment equity plans Amended Codes of Good Practice EE	Download Now
Employment Act Basic conditions of the Employment Act	Download Now
Amended Employment Act Amended Basic conditions of the Employment Act	Download Now
Labour Relations Act Labour Act 66 of 1995	Download Now
Labour Relations Act Amended Labour Relations Act	Download Now

29Jul, 2022

EconoServices Welcomes B-BBEE Advisory Council and the Drafted Legal Sector Code is out!

EconoServices welcomes the introduction of the newly instituted Broad-Based Black Economic Empowerment Advisory Council

The President of South Africa has recently appointed a diverse and representative group of people with sector expertise to serve as members of the Broad-Based Black Economic Empowerment Advisory Council and to guide government on intensified transformation of the economy. The President has appointed 14 Council members in terms of Section 6(1) (d) of the Broad-Based Black Economic Empowerment Act (Act No 53 of 2003). The appointments are for a period of five years.

The Council is made up of a diverse group drawn from business, trade unions, community-based organisations and academia. We trust that the Council will bring much needed clarity and stability in terms of interpretations of the Broad-Based Black Economic Empowerment Act.

In other news, Cabinet has approved the publication of the Draft Legal Sector Code (Draft LSC) for public comment, currently the legal profession does not have a sector specific code to guide them in addressing the imbalances and inequalities in the profession. It is important that Law firms familiarize themselves with the draft codes and prepare for when the Legal Sector code is promulgated.

If you are a law firm needing assistance on how best to navigate the impending codes, please reach out to us on 011 483 1190 (or on email info@econoservices.co.za) for assistance in strategy planning.

5Jul, 2022

Launching . . . EconoServices!

Launching . . . .

EconoServices would like to invite you to check out our new and improved website!

We have updated our website with a fresh, modern look and easy navigation, allowing you to view all of our services, current pertinent legislative downloads and peruse our tailor-made training options.

Interested in keeping abreast of all the newest B-BBEE, Employment Equity and Skills Development updates as they happen? Then please use the Subscribe button to enjoy our regular newsletter, sent to your inbox! Or have a look at our Latest News section to view our newsletters (past and present).

Our website is also available on ALL devices, with links to our social media accounts on Twitter , LinkedIn and Facebook

Have we got you interested? Please pop us an email with your contact details and one of our friendly consultants will give you a call.

7Jun, 2022

Penalties for Employment Equity Contraventions!

Penalties for Employment Equity Contraventions!South African companies are currently facing penalties for failing to meet the targets set in their Employment Equity (EE) plans. We are now seeing the Department of Labour ramping up its auditing and has stated that the majority of companies with March 2022 year-end, have missed the mark in terms of complying with EE legislation.

One of the reasons for companies being fined and penalised is that their EE plans are not conforming with the goals and numerical targets set by the designated employers and therefore not projecting rational progress towards transformation. It is therefore prudent that companies avoid setting targets in their EE plans that are not attainable.

EconoBEE specialises in Employment Equity Services and is therefore well-equipped to assist companies accurately when it comes to compliance in terms of EE plans.

EconoBEE also hosts and runs workshops on Employment Equity in which we advise companies and their relevant staff members on how they can comply with EE legislation

For more information on our EE assistance and training and workshop offerings, please contact us on 011 483 1190 or email info@econobee.co.za

24May, 2022

Calling for YES Implementation Partners and a quick look at Preferential Procurement in 2022

Calling for YES Implementation Partners!

Does your company need extra staff, but there isn’t any budget to accommodate this need? Contact us on 011 483 1190! We are looking for companies who want to host and provide quality work experience for youth as part of the YES initiative, for a 12-month basis. You will not be required to pay a stipend as this will be provided for.

Youth unemployment is one of South Africa’ s greatest scourges, keeping millions of youth disenfranchised, desperate, and disillusioned about their future. Through the YES Initiative, youth from across the country are able to get that first chance at playing an active role in resetting the economy.

Become an Implementation Partner and part of a national initiative that is creating youth work opportunities and changing the lives of our young people for the better!

Is Preferential Procurement gone forever? Let’s find out…

On Wednesday, 16 February 2022, the Constitutional Court handed down judgment in the application for leave to appeal against a judgment and order of the Supreme Court of Appeal. This application was brought by the Minister of Finance against Afribusiness, with concerns of the validity of the Preferential Procurement Regulations, 2017 (Procurement Regulations) decreed by the Minister on 20 January 2017 in terms of the Preferential Procurement Policy Framework Act (Procurement Act).

In a nutshell, the Procurement Regulations, amongst other things, introduced pre-qualification criteria to be eligible to tender. Under the Regulations, if an organ of state elects to apply the pre-qualification criteria, any tender that does not meet the criteria is an “unacceptable tender”. These qualifying criteria advance certain designated groups and provide that only certain tenderers may respond, including: tenderers having a stipulated minimum Broad-Based Black Economic Empowerment (B-BBEE) status level; exempted micro enterprises (EMEs) or qualifying small enterprises (QSEs), and tenderers subcontracting a minimum of 30% to EMEs and QSEs which are at least 51% black owned. If feasible to subcontract for a contract above R30 million, then the organ of state must apply subcontracting to advance the designated groups.

The preferential procurement act allows for all entities to tender and only during the selection process will the pre-qualifications be considered on the basis of affording small black owned entities to gain access into main stream economy due to being previously disadvantaged. The Department of Health amongst other government departments have confirmed that the suspension of the preferential procurement is a temporary adjustment and changes can be made. Although it is not known how long this suspension will be, we urge all entities to always be ready for anything and ensure that their B-BBEE Compliance status have met the pre-qualification.

Want more information about what this means for your business? Contact EconoBEE now on 011 483 1190 (or email info@econobee.co.za) to help guide you with cost-effective strategies to maximise your scorecard and ensure your compliance to the objectives of the B-BBEE Act.

10May, 2022

Recent High Court Ruling has Major Implications

Has the directive issued by SANAS on 06 April 2021 entitled “Clarity on Measuring Period” negatively affected your recent verification?

Earlier this year, we sent out a newsletter and article requesting clarity regarding this very SANAS letter.

The High Court has subsequently passed a ruling (on 11 March 2022), in which it is declared that:

SANAS has no power, in terms of the Broad-Based Black Economic Empowerment Act No 53 of 2003 or any other legislative instrument, to prescribe the measurement period that must be taken into account, when verifying an enterprise’s compliance with the codes of good practice as issued under the aforementioned B-BBEE Act!

This has major implications for any organisation who may have undergone a recent verification, and may mean that your level could be positively impacted!

We are waiting on official word from the DTI or SANAS with regards to the impact of this case. But it is clear judicial precedent has been set.

Would you like assistance to review your position / verification post the High Court ruling? Please feel free to reach out to us on 011 483 1190 or info@econobee.co.za if you would like to hear more.

When it comes to understanding the B-BBEE legislation and implementing the interpretation thereof, EconoBEE is dedicated to coming up with innovative transformation strategies for our clients that make business sense.

17Apr, 2022

Bridge the” GAP”

A gap analysis is a method of assessing the differences in performance between a business’ information to determine whether business requirements are being met and, if not, what steps should be taken to ensure they are met successfully. Below are some pointers where a B-BBEE “Gap Analysis” is concerned:

Supplier Development:

Supplier Development assists the financial and operational growth of a supplier from your database.
Once you have identified the “right fit” beneficiary for your business and you have established a mutually beneficial relationship, the next step is to identify the correct method of support.
There are many ways to support beneficiaries including monetary and non-monetary. Most businesses choose a monetary method due to time constraints.
Monetary contributions can be done in various ways. Grant contributions, discounts allowed in addition to normal business practice, overhead costs incurred in supporting enterprise development and supplier development as well as loans.
Regarding loans, you need to be vigilant about the benefit factor of the two different types of loan contributions. On interest-free loans you will get 70% recognition based on your outstanding amount and on standard loans you will get 50% recognition of your contributions.
The best way to manage a loan is to take the interest-free option and apply it over a period of 5 years. Due to the “outstanding loan amount” rule in the B-BBEE codes of good practice, you will receive recognition for the 5 years based on one contribution you have made.

Enterprise Development

Same as Supplier development, but this entity should not be on your supplier list yet but can graduate to become a Supplier for bonus points on the B-BBEE scorecard.

Skills Development:

The new codes demand far greater investment in skills development with a particular emphasis on accredited training and learnerships.
However, a business can make this work to the company’s benefit by:
- Using Skills development to develop the skills necessary to excel in business
- Invest in your people to retain them longer
- Create ladders of learning that create career paths
Choosing an experienced partner in implementing such programmes is essential to making these programmes a success.

EconoServices has advanced systems in place which specialize in minimizing these risks for our clients. We have only included a few examples above of what can be done – our dedicated consulting team is standing ready to help you and your company to “bridge the GAP”!

So, give us a call today on 011 483 1180 and let us help you put together and implement the best, most cost-effective, B-BBEE solutions and strategies for your business!

15Mar, 2022

EconoBEE wins a YES Programme related Case for our Client!

The YES4Youth Programme is a fantastic initiative that is focused on eradicating the high unemployment rate amongst South African Youth. The programme encourages companies to provide unemployed Youth with 12-month work experience (that can be added to their CVs), as well as possible permanent placement within their ranks. However, as it relates to B-BBEE, there are still a few points that need to be cleared up:

Can accommodations be made for extenuating circumstances?

EconoBEE recently experienced a unique situation in that a company had embarked on their second year of the YES Programme as a QSE. They had met all targets identified on the QSE Scorecard in order to maintain their Level 2. However, after the financial year ended, the financial statements stated that this company’s turnover exceeded the QSE threshold, therefore making them a Generic. As a result, this company had not been able to maintain the Level 2 as planned.
This resulted in the verification agency not awarding the company their YES Benefit.
EconoBEE decided to take this scenario to the DTI on our clients behalf, we presented the evidence to show that had the company’s turnover stayed in their QSE threshold, they would have maintained the Level 2.

We won the case, and our client was able to add the YES Benefit to their scorecard!

Who qualifies to use the YES Programme and obtain B-BBEE Benefit?

First time companies must achieve a compliant B-BBEE Certificate in order for the YES Programme to be applied at audit stage.
If a company would like to continue with the YES Programme for a second year, said company would need to maintain (or improve on) their previous B-BBEE Level. Therefore, if you achieved a Level 4 in your first year using the YES Programme, you will have to maintain the Level 4 in the second year.
Should the previous level not be maintained after verification, the YES Benefit will not be awarded.

Does the YES Programme work according to a Company’s Financial Year (much like B-BBEE does)?

Like B-BBEE, the YES programme does rely on a company’s Financial Year, however this is only in relation to the payments and registration. All payments to the YES Programme (Company Registration Fees as well as Youth Registration Fees), must be paid to the YES Programme before the end of a company’s financial year.
In addition to this, all Youth should also be registered on the system within the same Financial Year.
The financial year referenced above, would be the same financial year that a company would be verified on for B-BBEE purposes, which is why these payments need to be made in the same year.

Duration of the YES Programme:

The YES Programme is a 12-month Programme and the B-BBEE benefit can only be awarded in the below instances:
Year 1: any company that is implementing YES for the first time can be awarded the B-BBEE benefit immediately, without the Youth needing to complete a minimum number of months.
Year 2 and Beyond: any company that continues on the programme from year 2, will need to ensure that the YES candidate complete a minimum of 8 months on the programme (each year) in order to be awarded the Yes benefit.

Contact EconoBEE now to help guide your company with cost-effective strategies to maximise your scorecard and ensure your compliance to the objectives of the B-BBEE Act.

1Mar, 2022

Successful Submissions have an excellent Return on Investment!

Successful submissions of your Work Skills Plan and Annual Training Report can provide excellent Returns on your Investment!

The window period for submission of the WSP and ATR has opened for some of the SETAs, generally SETA submission window period is open until the 31^st of April annually. Without the approved WSP and ATR, Measured Entities will forfeit their skills development points.

Apart from B-BBEE , here are some of the ROI on successful WSP and ATR submission:

A mandatory grant to the value of 20% of your annual SDL.
The opportunity to apply for Discretionary Grants as the year unfolds.
It is an opportunity for companies to plan for and develop specific skill set requirements, ensuring both businesses and employees the opportunity to grow.

For measured entities without a skills development facilitator, EconoBEE is offering essential SDF services to help you manage the skills development element for you:

We can act as an external SDF for your company.
We can support your internal SDF with strategic insight and back-end administrative support.

Contact us on 011 483 1190 or email info@econobee.co.za so that we can help you maximise your ROI!

9Feb, 2022

Transformation of the Property Sector

The Property Practitioners Act (No 22 of 2019) (PPA) seeks to ensure the transformation of the property industry by facilitating the inclusion of previously disadvantaged South Africans within the property sector. The Act also provides that once it commences, the Property Sector Transformation Charter will apply to all Property Practitioners. The Act was signed into law by President Cyril Ramaphosa in 2019 and came into effect on the 1^st of February 2022. Section 20 of the PPA states that when procuring property-related goods and services, all organs of state must utilise the services of property practitioners who comply with the Broad-Based Black Economic Empowerment and Employment Equity legislation and policies. Furthermore, the Property Sector Transformation Fund (PSTF) has been established to offer grants to further transformation within the property industry. Are you a property company committed to transformation? Unsure of how the Property Sector Transformation Charter and the Property Practitioners Act will affect you or your company? Please contact us on 011 483 1190 and let us help you become compliant, navigate PPA / PSTC, and implement cost-effective, B-BBEE solutions and strategies that make business sense!

21Jan, 2022

“Clarity” Regarding SANAS Letter

Any verification undertaken from the 15^th of August 2020, should be done so in such a manner that it does not exceed a period of 12 months from the most recent Financial Year – End. This was the subject of the SANAS clarification letter dated the 6^th of April 2021 (which referenced a supporting SANAS email clarification dated the 14^th of August 2020 and attempted to “clarify” said email). Unfortunately, this letter did not shed light on how companies should address the following real issue that several companies have and may still face: what happens if a company is in the middle of a verification and their current financial year, ends? Does the measured entity continue to finalize their verification or must the entity stop the verification immediately? You may say, that company should have planned the verification to start (and end) sooner! However, as consultants, we know that in certain instances, getting a company verified (and completing the verification quickly) is not always as easy as that, for instance:

In this “new normal” we find ourselves in, companies may have employees working from home and not always easily accessible.
Integral people to the verification may get sick and therefore be unable to provide information.
Loadshedding, internet connectivity and other factors also contribute to delays.

It is therefore necessary for SANAS to provide a comprehensive statement so that there is no uncertainty for measured entities, verification agencies or consultants. Failing that, consultants should also be given access to ask SANAS questions or perhaps there should be one body that regulates all consulting firms and who can then provide more guidance in terms of the clarification(s)? When it comes to understanding the B-BBEE legislation and implementing the interpretation thereof, EconoBEE is dedicated to coming up with innovative transformation strategies for our clients that make business sense. Please feel free to reach out to us on 011 483 1190 or info@econobee.co.za if you would like to hear more.

9Dec, 2021

Tis the season . . . for B-BEEE!

EconoBEE would like to wish our clients, suppliers and you, dear reader, a very safe, joyful and peaceful festive season and New Year.

We will be closing our offices on the 15^th of December 2021 and be back to championing B-BBEE, EE and SD for our clients on the 3^rd of January 2022. During this period, should you have any queries, please email us using: info@econobee.co.za

We have some exciting line-ups for 2022 . . . !!

We are launching our bespoke online / virtual and face-to-face workshops on Broad-Based Black Economic Empowerment, Employment Equity and Skills Development, tailored to your individual or corporate needs! We will provide more information regarding this in subsequent newsletters, in the meantime and should you have any queries, you are most welcome to give us a call on 011 483 1190 or email us using: info@econobee.co.za

9Nov, 2021

Happy News to end off 2021

It is with great pleasure that we announce that EconoBEE is officially 51% Black owned and is the leading Black Economic Empowerment (BEE) Strategy and Management Consulting firm in South Africa.

Founded in 2000, EconoBEE is a highly specialised, niche corporate advisory business that specialises in providing companies with Research, Advice and Structuring services in the areas of Corporate Regulatory Compliance within the Broad-Based Black Economic Empowerment (B-BBEE), Employment Equity (EE), Transformation, Enterprise and Supplier Development (ESD) and Skills Development (SD) ecosystem. As a 51% Black Owned EME, EconoBEE is a Level 2 BEE compliant company with a total recognition score of 125%. As a visionary organisation within the South African BEE context, the company’s strategic goal is to ease the legal, compliance and administrative burdens and legislative shortcomings of its clients, whilst assisting in their growth endeavours. EconoBEE makes use of highly sophisticated, state-of-the-art technology software to analyse their client’s corporate ownership structures. This is further bolstered by an in-depth set of Gap Analyses in the formulation of scorecards that essentially measure the success of their clients’ strategic endeavours and corporate goals. Our team is made up of a team of consultants with a mixture of legal and commercial qualifications. EconoBEE’s revolutionary consulting concepts and analytical management methodologies has resulted in the business, as well its brand, becoming one of the most recognized in the areas of Transformation and Broad-Based Black Economic Empowerment in South Africa.

We look forward to growing EconoBEE to greater heights as we begin this new journey.

27Oct, 2021

Sector-Specific EE Targets: Are You Ready?

The Commission of Employment Equity is currently in consultation with industry stakeholders to finalise the highly-anticipated Employment Equity Draft Amendment Bill. One of the key features of the bill will be introducing tailored Economically Active Population (EAP) targets. For employment equity compliance, this will be a simple exercise that may affect designated employers’ quantitative analysis and numerical targets for each occupational level.

Due to the inter-relatedness of B-BBEE legislation and employment equity regulations, there may also be changes in management control (Statement 200) and skills development (Statement 300), as these elements include EAP targets to allocate the points you may earn. As your consultants, we have deliberated on these amendments and have strategic ideas on how best you can manage these coming changes. Give us a call at 011 483 1190 or email: info@econobee.co.za to find out how we can prepare you in advance!

13Oct, 2021

Yes, Fronting is a Criminal Offence!

A recent ruling by the B-BBEE commissioner has brought into sharp focus the misunderstanding with regards to the legitimate beneficiaries of B-BBEE. https://www.bbbeecommission.co.za/vicky-adey-consulting-cc-withdraws-from-government-panels-and-surrenders-for-cancellation-its-cidb-grading-for-misrepresentation-of-b-bbee-status/ For B-BBEE purposes, the definition of black is very specific and in terms of the Broad-Based Black Economic Empowerment Act (B-BBEE Act) the definition of “black people” is given as follows: “Black people is a generic term which means Africans, Coloureds and Indians–

Who are citizens of the Republic of South Africa by birth or descent; or
Who became citizens of the Republic of South Africa by naturalization-
- Before 27 April 1994; or
- On or after 27 April 1994 and who would have been entitled to acquire citizenship by naturalization prior to that date.”

In the Vicky Adey consulting case, the facts were as follows: Vicky Adey Consulting CC claimed to be 100% black owned however, the alleged black ownership actually included a Nigerian national (40%), who does not qualify to benefit under the B-BBEE Act, if one considers the definition of black people in section 1 of the B-BBEE Act, as mentioned above. The B-BBEE Act specifically defines black people to exclude any non-black South African citizens, foreign nationals and those black people that acquired citizenship by naturalisation after 27 April 1994. Hence it is critical to track the background of an entity’s owner(s) in order to determine compliance with and status within the B-BBEE Act. Further, based on the information, it appears that Vicky Adey Consulting CC may have accessed opportunities within the government on the basis of the misunderstanding and this company is now bound by the consequences of that ruling. The B-BBEE commission is clear Including foreign nationals in ownership as black violates the B-BBEE Act, is contrary to the objectives of the B-BBEE Act and amounts to misrepresentation which is a form of fronting in terms of the B-BBEE Act. Another instance where the legitimate beneficiaries of B-BBEE may be confused is when two foreign nationals – who both have permanent residence – are married and have a child in South Africa. In terms of the above definition, the child is not a citizen of South Africa and would thus not be a beneficiary of B-BBEE. In summary Is fronting a criminal offence? Yes! Under the B-BBEE Codes of Good Practice, fronting is now recognised as a criminal offence. If found guilty, businesses could face a fine of up to 10% of their annual turnover or up to 10 years in prison. Want more information about ownership and what this means for your B-BBEE Scorecard? Contact EconoBEE now to help guide you with cost effective strategies to maximise your scorecard and ensure your compliance to the objectives of the B-BBEE Act.