From a DTI presentation on BBBEE, hosted by Black Business Chamber. The presentation and answer session was by Julia Nzimande and Lindiwe Madonzela:
- If certificate is current we will not be allowed to do a second audit [I surmise here that you can't get a second opinion]
- Management accounts will not be accepted – now have to use audited AFS [Oh well – it will at least cut back on VAT 201 paperwork. This is going to be a problem and I would imagine difficult to police]
- Drop in sub minimum needs to be reported on the certificate [Oh naughty us, we are named and shamed]
- The 2 points for black junior management will be removed in the next amendments [More's the pity]
- ED and SD – any loans rolled over cannot be counted in the next year [I would imagine that loans will dry up altogether – other ways of generating the points will be discovered that cost less than loans]
- Costs occurred outside RSA as a result of export sales can be excluded from the cost of sales calculation [Wow!!!]
- In the Preferential Procurement calculation imported goods can no longer be excluded if there is a local supplier alternative. If there is no local supplier then we need to submit a local supplier development plan. [Like that's going to happen]
- Technical Guidelines will only be issued end of Q3 [Udge approved for sure. At least he drafts documents that can actually be read]
- State owned entities will be allowed to set own procurement parameters and it seems likely that they will ask for 51% black ownership in spite of the current codes only requiring 25% [We've seen this already- it will either fail or fronting is going to run rampant. There is so much ineptitude within the public sector, when you throw corruption into the equation things will continue as normal]
- Task team that has been appointed to look into ownership are likely to force some type of narrow scheme in addition to a broad based schemes [Is this a surprise if the Black Business Council is involved. This is where the courts will have to get involved]
- Empowering supplier – additional clause to be added that you need to be a "good citizen" or you will fail the test – example they gave – if you don't pay your toll fees you can be deemed a bad citizen… ..this seems beyond the scope of the law – how can the DTI determine if you are guilty or not – are they going to try and enforce this….[Now hear this. If you make it difficult for companies to comply they won't. If they are not going to be deemed as empowering suppliers then why would they bother with the rest]
- In the new amendments they are talking about an automatic drop to level 8 for failing any sub minimum – the comment was that if you fail one then you are not serious about BBBEE [Does this mean, level 8 automatically. What a great idea. Level 8 becomes the norm]
Nothing really surprises me anymore. The DTI know nothing about running an economy, the BBC knows this and as such can force them into making announcements that define business and general logic. There is a lot of apartheid style social conditioning in all this. Nou gaan ons die wit mense lelik opfok!!!
But before we go too deep into this. Can anyone confirm that this was actually discussed? My source cannot confirm this.
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