WHAT IS BEE

Verifications and BEE Cerificates

It is not mandatory to get a verification agency to audit a BEE Scorecard. It is however a requirement to have suitable documentation/evidence to score any points. SANAS (South African National Accreditation System) and IRBA (Independent Regulatory Body for Auditor) has been mandated with accrediting the Verification Agencies. This accreditation has been put in place to ensure the consistency of the independent verification of BBBEE contributions. BEE Certificates can be issued by any Verification Agency so long as they are approved to do so by SANAS or IRBA. Accounting officers registered in term of the Close corporation act of 1984 can also issue the BBBEE Certificates for EMEs The Certificate can only be issued once a full verification has been performed and the documentation presented by your company has been verified.
On the certificate, the following information should be listed:

Company name and number:

Type of Certificate (Group/Entity/Division)

BEE Category (EME/QSE/Generic)

BEE Level (1–8)

Procurement Recognition %

Black Ownership %

Black Women Ownership %

Value Adding Supplier (Yes/No)

Certificate Issue Date

Certificate Expiry Date

No additional information is required to be provided to a business' customers. A BEE Certificate is sufficient evidence of a business' BBBEE Compliance.

Enterprise size's effect on BBBEE

In terms of Act 53 (2003) Codes of Good Practice for Black Economic Empowerment all enterprises in South Africa are divided into one of three categories:

Generic Enterprises (turnover greater than R50 Million)

Qualifying Small Enterprises (turnover between R10 Million and R50 Million)

Exempted Micro Enterprises (Turnover Less than R10 Million)

In Terms of Act 53 (2003) each of these categories have differing sets of measurement criteria.

General Enterprises

Generic enterprises are those enterprises that have a turnover of greater than R50 Million. It is estimated that only 4% of South African Enterprises Fall into this category. Generic Enterprises must apply all seven pillars of BBBEE to calculate their score as per the Generic Scorecard. Generic Enterprises Must Apply Code 000-700 of the act and apply stringent reporting techniques.

Qualifying Small Enterprises (QSE)

Qualifying Small Enterprises (QSEs) are enterprises that have a turnover between R10 Million and R50 Million, they apply code 800 to calculate their scorecards. Code 800 is a simplified version of Code 000-700 which includes less stringent scorecards for each element. QSEs can choose the best four of their seven elements, with each element accounting for 25% of their scorecard out of 100. While code 800 is a simplified version of the other 7 pillars it has been ruled by the DTI that in any issues not specifically discussed in Code 800 should be applied as per Code 100–700.

Exempted Micro Enterprises (EME)