I was invited by Obed to join an email debate with Mel Lewis of the Third Line. The subject matter related to socio economic development (SED) beneficiaries. I have learned over the last few years that if you are going to enter into any form of debate with Obed then you had better know the codes well because he has an incredible eye for detail (I think he's up on the debate wins at the moment).
Mel started out the debate with the email
I work with an NGO called the South African Breastmilk Reserve. Essentially they help to ensure that babies in neonatal ICUs get donor breastmilk. This helps to save the lives of these neonates. They have recently been asked if they are a BBBEE suitable NGO. I know we had the discussion around SED specifically relating to NGOs that focus on developmental kind of work. What do you think. Would they be a suitable SED option?
I saw this as pure SED. It was then that Obed pointed out section 3.2.1 of code 700
Socio-Economic Development Contributions consist of monetary or non-monetary contributions actually initiated and implemented in favour of beneficiaries by a Measured Entity with the specific objective of facilitating sustainable access to the economy for those beneficiaries.
He emphasised the highlighted section and told us that there had been a fair amount of debate at one of the SANAS workshops about "facilitating sustainable access to the economy". Apparently there was some agreement that any cause that feeds orphans (for example) could not be regarded as "facilitating sustainable access to the economy" and hence would not be a beneficiary under SED.
I naturally disagreed (as I always do with Obed initially) and then we tried to fit this into Mel's situation. I believe that providing breast milk to infants you are putting them on the road to become sustainable in the long term. Being a new parent I am acutely aware of the importance of proper nutrition at the earliest stages of an infant's life. This is my argument however, a rating agency might not be convinced.
But there is another aspect that also needs to be taken into account. If a company adopts the SABR as a SED beneficiary and they are told by a verification agency that this is not acceptable for SED points, can you imagine the potential repercussions. That NGO could go to the media and tell them how XYZ Verification Agency has disallowed the donation for SED points. Can you imagine the headline (might even be front page) "BEE fails for charity!!!!". The verification agency would be mentioned and they would definitely end up trying to interview the DTI.
The codes don't really prepare you for these eventualities.
Midmar time again
I'm off to swim the Midmar mile this weekend. I have given up on my competition with Daffy and have not trained at all. Anyway he's getting married next weekend I have to leave him with something in his last few days of bachelorhood.
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