Are there any consequences of not having a valid B-BBEE Status?
Firstly, choosing not to have a valid B-BBEE Status is an internal choice an organisation has to make, as it is not a legal requirement. However, organisations must evaluate what the impact of not having a valid B-BBEE Status means in terms of gaining and retaining business within the private and public sector. For example, a supplier contract may become invalid with no accompanying B-BBEE Credentials, or it may impact an organisation’s ability to win new business.
However, organisations whose financial turnover has significantly changed should evaluate whether they fall under another threshold due to their loss in revenue. For example, ABC Traders is a Qualifying Small Enterprise (QSE) under the General B-BBEE Codes of Good Practice, and in their February 2022 Financial Year End, their annual total revenue was R25m which shrunk to R9m for their February 2023 Financial Year End. Subsequently, they would now be measured as an EME with lesser compliance and financial implications.
Technical Services are available to advise Members on consequences of not having Valid B-BBEE Credentials.