Cabinet has given the nod for revised broad-based black economic empowerment “codes of good practice” to be published for public comment.
“The revised codes will enhance the implementation of B-BBEE in a meaningful and sustainable manner,” government spokesman Jimmy Manyi told reporters after Cabinet’s regular fortnightly meeting on Wednesday.
The revised codes also contained principles and guidelines that would facilitate and speed up B-BBEE implementation, he said.
“The purpose of the codes is to assist and advise both the public and private sectors in their implementation of the B-BBEE Act.”
Key areas of refinement included the generic scorecard being reduced to five elements, with employment equity and management control being consolidated, and preferential procurement and enterprise development merged to form a supplier development element.
The points for ownership had been broadened to include designated groups in the main points. Thresholds for exempted micro enterprises and qualifying small enterprises (QSE) had been adjusted.
Further, all companies, except exempted micro enterprises, would be required to comply with the five elements of the B-BBEE scorecard.
Others included revised qualification points for awarding B-BBEE recognition levels status, and the introduction of priority elements –ownership, skills development, and supplier development, and large enterprises to comply with all three priority elements.
The priority scores of entities that did not comply with sub-minimum requirements in each priority would be discounted.
Entities that were 100 percent black-owned would qualify as level one, and those more than 50 percent black-owned would qualify as level two.
An updated framework for the accreditation of B-BBEE verification agencies would include the independent regulatory body of auditors.
The B-BBEE employment equity elements would be aligned with the Employment Equity Act, skills development elements with the new skills development strategy, and QSEs should comply with all five elements on the scorecard.