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THE

BEECHAMBER

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NEWS

INTRA-GROUP PROCUREMENT TO CLAIM TOTAL MEASURED PROCUREMENT SPEND


Intra-group procurement spend is a normal part of spending, especially for groups of vertically connected companies, which in many cases is a sizeable amount. Internal procurement between holding companies and their subsidiaries must be included in an organisation’s Total Measured Procurement Spend as per Statement 400.


Paragraph 5.1.2 states: Intra-group procurement: all goods and services procured from subsidiaries or holding companies of a measured entity (BEE Credentials of the entity supplying goods and/or services must be confirmed in the way of a BEE Certificate).


It is clear that B-BBEE Credentials must support Intra-group procurement whether a subsidiary or holding company produces an independent B-BBEE Certificate or Affidavit or a group consolidated one.


It is important to note that the subsidiary or holding company must be listed as an entity that has been included in the group consolidated B-BBEE Certificate’s verification procedures as per the SANAS R47-03 requirements as well as requirements under the 2008 B-BBEE Verification Manual must be considered.


Enterprise & Supplier Development Services are available to steer Members on what constitutes a TMPS claim.

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