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From 1 May 2015 the new B-BBEE codes are in effect! What does this mean for you?

by , 27 March 2015
There are two big changes to the B-BBEE bill. You need to put these in place today to maximise your BEE Scorecard! And, of course, so you don't miss any business opportunities because you didn't meet the B-BBEE requirements!

Unlike the current B-BEEE structure, the new one even has penalties in certain instances. Even though, legally, you don't have to comply with BBBEE targets, your status is important. Especially when it comes to Government and public entity tenders and, in some sectors to get licences. For example, mining and gaming.

Private sector clients also increasingly require their suppliers to have a minimum B-BBEE rating. This is so they can boost their own B-BBEE ratings. So, B-BBEE is something you need to look at for your company.

Let's have a look in detail...

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What are the amendments to the B-BBEE Act?
The changes to the B-BBEE Act shows Government is being more active and strict when it comes to implementing B-BBEE. 
It also introduces new measures to: 
- Establish a B-BBEE Commission. Their role is to oversee and advocate when it comes to B-BBEE. It will also investigate complaints about B-BBEE, B-BBEE transactions and 'fronting practices'. The Commission will have important powers. This includes being able to issue subpoenas and apply to Court to restrain a breach of the BBBEE Act and fronting. This means there's now a 'watchdog' in place if you're not sticking to the law; 
- Introduce criminal offences. If you misrepresent or give false information about your company's B-BBEE status. It also includes engaging in fronting. A breach can now result in a fine and up to 10 years in jail for individuals. A company could receive a fine of up to 10% of its annual turnover. You could also face bans from contracting Government and public entities for 10 years; 
- Give Government and public entities the right to cancel any contract or 'authorisation' it awards if you give false information on your B-BBEE status; 
- Impose an absolute obligation on Government and public entities to take the Codes into account. This is in their procurement policies and when they issue licences and authorisations. Before, they only had to do it as far as reasonably possible. Now, if you're a Government or public entire you have to take them into account; 
- If you're a South African listed entity, by law you have to provide a report to the B-BBEE Commission on your compliance with B-BBEE.
Keep reading to find out what this means for you...

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The revised B-BBEE points and what they mean for you…
The amendments to the Codes drastically change the way you work out your company's B-BBEE status or level. This is because of the increase in the number of B-BBEE points you need to reach a certain level. 
These changes affect your current B-BBEE rating. And could also lead to an automatic downgrade of your status! 
You'll have to review your current B-BBEE strategy to assess the impact of these changes. Then you must take steps to maintain your existing B-BBEE ratings.
P.S. We'll be running a Workshop on 30 April to help you deal with the B-BBEE codes... Email seminars@fsp.co.za and you'll be the first to know when bookings open!

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