top of page

THE

BEECHAMBER

Asset 4.png

NEWS

SILENCE VS CONFLICT



Here are three tips for avoiding the common conflict that many organisations face regarding what version of a B-BBEE Code of Good Practice is applicable to them:


  1. Organisations must comply with the requirements of the B-BBEE Code of Good Practice they qualify to be measured against. For example, an organisation that does not earn 50% of its annual revenue from a sector that has a B-BBEE Sector Code issued in terms of Section 9 (1) of the B-BBEE Act must revert to be measured on the Amended General B-BBEE Codes of Good Practice. In 2019 there were amendments to the Amended General B-BBEE Codes of Good Practice, namely in Statement 000, Statement 300, Statement 400 and Schedule 1 – Interpretations & Definitions. These amendments only apply to those measured on the Amended General B-BBEE Codes of Good Practice. As to date none of the Sector Codes have been amended to incorporate these amendments, they do not apply to those measured on a B-BBEE Sector Code.

  2. The Transport Sector Code has not been amended since it was introduced in 2009. Subsequently, an organisation falling into this ambit is still measured against the requirements of the initial B-BBEE Codes of Good Practice implemented in 2007.

  3. Consequently, an organisation measured on the Transport Sector Code has not yet faced the consequences of not meeting sub-minimum requirements of the Priority Elements or the Discounting Principle. However, the Y.E.S initiative is applicable to the Transport Sector based on a Clarification Statement issued in February 2020.


Lastly, if a Sector Code, either amended or not, is silent on an issue, an organisation must revert to the requirements held within the Amended General B-BBEE Codes of Good Practice.


It is, however, vital to know the difference between Silence vs Conflict in the context of B-BBEE Legislation to avoid any issues.


Technical Compliance Services are available to help members understand the difference between Silence VS Conflict under B-BBEE legislation.

bottom of page