Report back on DTI summit Workshop

ch_logoWe would like to share our findings with you from the B-BBEE summit.

I am happy to report that things are not nearly as bad as we thought they would / could have been. Changes to laws governing black economic empowerment will be highly beneficial for small, black-owned companies but not for under performing big ones – planning and preparation for these changes are now essential.

Minister Rob Davies announced good news for small black-owned businesses at the inaugural National Summit on Broad-Based Black Economic Empowerment (B-BBEE) on Thursday afternoon.

Companies that are completely owned by black South Africans and have an annual turnover of R10-million or less will now be automatically awarded a “level one” B-BEE status, the highest level that can be obtained.

Companies of the same size that are at least 51% black owned will be recognised as “level two” B-BBEE contributors. These companies will merely be required to produce an affidavit as proof of their B-BBEE status.

The new ruling comes with the final revision of the B-BBEE Codes of Good Practice (the framework governing the implementation of Black Economic Empowerment) which has been completed and will be gazetted on the 11th of October – the same day that we will receive our first copy of the codes.

Compliance with B-BBEE legislation is required by companies wishing to tender to government, and companies with better B-BBEE status levels score higher points in the tender process.

It follows a lengthy revision process to the laws governing black economic empowerment, which began in 2011.

New thresholds for EME’s, Qse’s and Generic companies of 0-10 million, R 10-50 million and R 50 million + were also announced but with priority elements now being compulsory for compliance for both QSE and Generic companies.

Davies said that the benefits of BEE were merely cosmetic in many cases. “There is far too many passive BEE shareholdings and far too little meaningful black ownership,” he said.

In addition, BEE fronting – the false representation of black South Africans as benefactors to BEE deals or senior management positions – had become rifer and increasingly sophisticated

It was announced that “Fronting has reached catastrophic levels,” with many companies seeking to ways to earn BEE points without really transforming.

In trying to address these ills, the department of trade and industry has hiked up requirements for large companies wishing to gain B-BBEE recognition while providing the announced relaxation for smaller companies. A Bee commissioner will now be appointed to investigate all BEE deals and Verification companies will be held responsible to the commissioner.

A new sub-minimum threshold will be applied in three areas of the B-BBEE score card for companies with an annual turnover of more than R50-million. Companies that do not reach the minimum levels for all three areas will automatically be dropped down one status level.

Companies will be required to score a minimum of 40% in specified areas of black ownership, skills development and supplier development in order to maintain their levels.

The change will see many companies in the country dropping a B-BBEE status level. It will also require organisations to put significantly more focus on these three areas in order to achieve the same levels that they did previously.

This decision, made public on Thursday for the first time, is less stringent than the draft revision of the B-BBEE codes put forward by the department near the end of 2012.

In the suggested legislation, companies failing to reach the sub-minimum levels should drop by two status levels. In response to public outcry, the department decreased the so-called “discounted levels” to one status level drop.

It will be a challenge for South African companies to work towards. “A B-BBEE status level drop is a lot. Even losing one point is a lot for large companies.

This is the beginning of the stick that [the department of trade and industry] will use to beat companies for noncompliance. The good news is that for companies willing to embrace BEE there are solutions and rewards for them.

But the department felt the decision to penalise non performers was warranted, the resistance by individuals over the years to embrace BEE has necessitated these decisions.

What has been tabled will have far reaching repercussions for your company, and you need to know the facts so that you can make informed decisions going forward. We are hosting a series of workshop seminars to help you understand what the new legislation entails, and the strategies you need to implement to prevent a drop in your BEE level.

You will need to understand and implement the new priority elements, adjust your new Skills and EE targets; Preferential procurement and Supplier development will be consolidated. The days of doing donations to achieve points will no longer be accepted. Supplier development is another new challenge for your company.

In 2014 the codes change and you will be verified under the new codes. Please do not wait – we have solutions that can assist your company.

Please attend – you will not be sorry – we cover a lot of information that will allow you to make informed decisions on the future structure of your company.

Seats are limited so please book now to avoid disappointment.


City Date
Johannesburg – HAKUNAMATATA 15 October 2013
Pretoria – THE FARM INN 17 October 2013
Cape Town – TBC 24 October 2013
Durban – TBC 29 October 2013
Polokwane – TBC 5 November 2013
Mbombela- TBC 7 November 2013
Port Elizabeth and East London venue and dates to be confirmed
Workshop times: registration 08-30 to 9-00 Start at 9-00 and close at 16-30
Cost – R 1495-00 per delegate attending
Refreshments and lunch will be provided


Are you aware? – The Occupational Health and Safety Act (Act 85 of 1993)

(17) Health and Safety Representatives

Subject to the provisions of subsection (2) every employer who has more than 20 employees in his employment at the workplace shall within 4 months after the commencement of this act, or after commencing business, or from such time as the employees exceeds 20,as the case may be, designate in writing for a specified period health and safety representatives for such a workplace, or for different sections thereof.

5. The number of health and safety representatives for a workplace or section thereof shall in the case of shops and offices be at least one health and safety representative for every 100 employees or part thereof, and in the case of all other workplaces be at least one health and safety representative for every 50 employees or part thereof. Provided that those employees performing work at a workplace other than that where they ordinarily report for duty, shall be deemed to be working at the workplace where they report so for duty.

Below extract from OHS act in regards to First Aid.

The Occupational Health & safety act requires that-

(2) Where more than 5 employees are employed at a workplace, the employer of such employees shall provide a first aid box or boxes at or near the workplace which shall be available and accessible for the treatment of injured persons at that workplace.

(4) Where more than 10 employees are employed at a workplace, the employer of such employees shall take steps to ensure that for every group of up to 50 employees at that workplace, or in the case of a shop or office as contemplated in the Basic Conditions of Employment Act 1983 (Act no.3 of 1983), for every group of up to 100 employees, at least one person is readily available during normal working hours, who is in possession of a valid certificate of competency in first aid, issued by;

(a) The S.A Red Cross Society (b) The St John Ambulance; (c) The S.A. First Aid league; or (d) A person or organisation approved by the Chief Inspector for this purpose.

If we can be of assistance please you with your OHS or OHS equipment reply with OHS in the subject line and we will.


Hilton Johnson

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