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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 the Sector Codes of Good Practice. For example, if a supplier operates in the tourism sector and then presents a B-BBEE Certificate or Affidavit based on the Generic Codes of Good Practice (Generic Codes) instead of the Tourism Sector Code, 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 against which they are measured. The rule is that an organisation qualifies to be measured on the Code 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 Sector Code. They book accommodation at the XYZ Hotel. The B-BBEE Credentials presented for the accommodation must reflect the Amended Tourism Sector Code against those criteria. The procurement person at ABC Construction should know that XYZ Hotel’s B-BBEE Credentials must align with the Tourism Sector Code. In addition, it is imperative that those in procurement are aware of the turnover thresholds, targets, and the Weighting Points of all sector codes, as they, in some cases, differ from the Generic Codes.


Enterprise & Supplier Development Services are available to guide organisations in addressing challenges in procuring across sectors.


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