If you're confused about the revised QSE B-BBEE proposal, read this...
On Wednesday, we reported that the Department of Trade and Industry (DTI) has released the Revised B-BBEE Scorecard for Qualifying Small Enterprises (QSE) for public comment.
Following this report, employers have been asking for more clarity as to how their companies will be affected. We don't blame them. Broad-Based Black Economic Empowerment (B-BBEE) is a complicated subject. And non-compliance isn't an option.
Luckily, we're here to help.
Here's what you need to know about the revised QSE B-BBEE scorecard.
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This is what must know about the revised QSE B-BBEE scorecard
In an interview with biznews.com,
the founder of EconoBEE, Keith Levenstein
says, if your company's turnover is between R10 million and R50 million, this is where the revised scorecard comes in.
According to Levenstein, if your company is 100% black-owned and its turnover is between R10 million and R50 million, it's automatically a Level 1 company (the top ranking for B-BBEE). If a company is at least 51 % black-owned, it's automatically Level 2 without doing anything. It's when your company is less than 51% black-owned that you need to follow the revised scorecard.
The implications are that all QSEs are going to have to follow all five elements of the Amended BBBEE codes, which include ownership, management control, skills development, preferential procurement, (which is now called Enterprise and Supply Development), and socio-economic development.
As Levenstein explains, 'on the old codes that we're currently working on, a QSE could choose four out of the seven elements. Now, it has to choose all five elements, which obviously includes the controversial ownership aspect.'
What's motivated government to make changes?
Government wants to curb fronting.
This is when companies misrepresent their BBBEE status, stating they meet a particular condition or have a BBBEE Level they don't.
We hope this explanation has made it clear how the revised QSE B-BBEE proposal
will affect your company.
PS: If you have questions regarding the scorecard, ask our experts at www.labourandhrclub.co.za.
Note: 5 of 1 vote