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THE

BEECHAMBER

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NEWS

MITIGATE THE RISK OF PROCURING ACROSS SECTORS



Critical points are lost on the Preferential Procurement Scorecard of many organisations, as they are unfamiliar with the requirements of specific B-BBEE Sector Codes of Good Practice. For example, if a supplier operates in the tourism sector and then presents a B-BBEE Certificate or Sworn Affidavit based on the General Amended B-BBEE Codes of Good Practice instead of the Tourism B-BBEE Codes of Good Practice, it is invalid. Unfortunately, the extent to which this happens only reveals itself at the time of an organisation’s B-BBEE Verification.

 

A supplier may not choose the Code of Good Practice against which they are measured. The rule is that an organisation qualifies to be measured on the Codes of Good Practice of the sector from which most of its income is derived.

 

However, confusion often reigns when suppliers present B-BBEE Credentials across sectors. For example, ABC Construction is an organisation measured on the Amended Construction B-BBEE Sector Codes of Good Practice. They book accommodation at the XYZ Hotel. The B-BBEE Credentials presented for the accommodation must reflect the Amended Tourism B-BBEE Sector Codes of Good Practice against that criteria. The procurement person at ABC Construction should know that XYZ Hotel’s B-BBEE Credentials must align with the Amended Tourism Sector B-BBEE Codes of Good Practice. In addition, it is imperative that those in procurement are aware of the total revenue thresholds, targets and the Weighting Points of all B-BBEE Sector Codes of Good Practice, as they, in some cases, differ from the General Amended B-BBEE Codes of Good Practice

 

Support Services are available to guide members on specific requirements for B-BBEE Sector Codes of Good Practice.

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