Global Business Solutions reports that the amended Codes of Good Practice for B-BBEE will now take effect from 1 May 2015 after a delay caused by problems with aligning sector codes with the amended codes.
As you know, the new codes provide the basis on which the B-BBEE rating of your company is calculated. The new codes contain five rather than seven elements and provide for penalties should an enterprise fail to reach the minimum standard in these areas: Ownership, enterprise development and procurement and skills development.
Global Business Solutions says if your company is scored in terms of the amended codes, you can start planning and strategising approaches to ensure that your B-BBEE levels aren't adversely impacted for too long.
If your company is scored under a sector code, you'll have a bit of a problem. The DTI still hasn't confirmed if all sector codes will be aligned at the date of change and how closely they'll be aligned.
Global Business Solutions explains that the amended codes have changed the points per level. So for example, a company that scored 65 points under the 2007 Codes of Good Practice is a Level 4 contributor. A company scoring 65 points under the amended codes is a level 7.
This will affect your B-BBEE scorecards.
That's not the only change.
The procurement mix has also changed.
Companies under the old codes could get 12 points if 70% of their procurement was from B-BBEE compliant suppliers. This has now changed to five points for 80% procurement from B-BBEE compliant suppliers, with the balance of the points being switched to procurement from QSE's and EME's and from black business.
It's clear that the new B-BBEE Codes will make it harder for your company to achieve the required targets.
So what should you do now?
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Global Business Solutions recommends you undergo verification just before the change of codes. The certificate should be signed as close to 30 April 2015 and will be valid for 12 months after date of signature.
The site says this will give your company an additional 12 months to get clarity on the amended codes and then to determine strategies to implement the amended codes to your company's best benefit.
Now that you know when the amended B-BBEE Codes will take effect, keep reading FSP Business for more updates on this topic so you can comply and avoid penalties.