Search Results

Clause 2.4.2 of statement 400 of the Generic Codes of Good Practice allocates Bonus Points for creating one or more jobs as a direct result of a Supplier Development or Enterprise Development intervention. The necessary evidence varies between B-BBEE Rating Agencies. Generally, however, a letter confirming job creation from the Beneficiary will serve as such evidence. The letter of confirmation must affirm that the intervention created at least one new job. Some confirmations may include being administered by a Commissioner of Oaths. This must be undertaken by the Beneficiary and must include: An organisation’s full name, physical address, postal address and registration number; A Beneficiary’s full company name, physical address, postal address, and registration number; The Enterprise Development or Supplier Development commenced; The date of the contribution; The number of new positions due to the intervention; and The names of the new employees; Enterprise & Supplier Development Services are available to assist Members meeting requirements for Job Creation.

The most critical element of an Enterprise Development loan is that it is a loan and not a grant disguised as one. An organisation must record a loan in their Financial Statements to confirm its origin. The following is a non-exhaustive list of evidence necessary for a B-BBEE Rating Agency at the time of a B-BBEE Verification: Signed Loan Agreement including the type of loan and the terms of repayment; Proof of the valid B-BBEE status of the Beneficiary; Evidence that an organisation paid the loan in full as per the agreement; Presentation of the loan account, ledger or a journal that determines the outstanding amount. Acknowledgement from the Beneficiary that the loan was received as per the agreement; As the necessary evidence slightly differs between B-BBEE Rating Agencies, an organisation should confirm before their B-BBEE Verification what their evidence requirements are. Enterprise & Supplier Development Services are available to assist Members with the creation & implementation of Enterprise & Supplier Development initiatives.

At the time of B-BBEE Verification, a Measured Entity needs to produce all relevant evidence or documentation to substantiate their B-BBEE claims. From a Measured Entity perspective, it is often misunderstood that confidential documentation cannot form a part of the B-BBEE Verification whereas a B-BBEE Rating Agency would require this based on the procedures that they need to follow. Reference is made to clause 2.6 under Statement 000 of the Amended General B-BBEE Codes of Good Practice which states: 2.6 Any representation made by an Entity about its B-BBEE compliance must be supported by suitable evidence or documentation. A Measured Entity that does not provide evidence or documentation supporting any initiative must not receive any recognition for that initiative. B-BBEE Verification Services are available to assist Members with their B-BBEE Verification Requirements.

Thank you for attending the session we hope to see you again soon. for upcoming events follow this link https://www.bee.co.za/training

Staff Writer | 10 July 2023 The Companies and Intellectual Property Commission (CIPC) has released its new ‘Beneficial Ownership Register’ platform that companies must fulfil, says Micaela Paschini, an attorney at Tax Consulting SA. Paschini said that businesses are now required to declare their beneficial ownership to the CIPC before October 2023, following concerns raised by the Financial Action Task Force (FATF) over the country’s failings in terms of financial crime and anti-money laundering. This means the ‘warm body’ that sits behind a company can no longer remain off the record. She said this has far-reaching implications for anyone who owns an asset which is either of value or has a more complex ownership structure. Failure to update and maintain this information will result in the CIPC considering the company as non-compliant, but more importantly, it weakens the company in almost every aspect of doing business, including placing the banking relationships at risk, Paschini said. The FATF, of which the government has adhered to its recommendations, said that sanctions should be applied to companies that breach their beneficial ownership obligations. The functionality for the declaration of Beneficial Ownership has been added to the CIPC’s e-services landing page. Although there have been a handful of new documents companies must complete to comply with the CIPC, beneficial ownership registration is probably the most urgent, she said. Companies and close corporations are now required to establish and maintain a Beneficial Ownership Register, including: Profit companies Non-profit companies External companies Non-exempt state-owned companies Close corporations Listed companies who qualify as affected companies are, however, subject to a slightly different set of requirements, but the concept of Beneficial Ownership remains the same, said Paschini. “Beneficial Ownership”, in relation to a company, refers to a person who, either directly or indirectly, “ultimately owns that company or exercises effective control of that company,” said Paschini. Some examples of Beneficial Ownership include where a person: Has a beneficial interest in the shares of a company; Exercises, or controls the exercise of, voting rights associated with shares of a company; Exercises, or controls the exercise of, the right to appoint or remove directors of a company; Is able to exercise control, including through a chain of ownership or control, of: a legal entity, body of persons, partnership, or a person acting under the provisions of a trust agreement (i.e. a trustee or beneficiary); Can materially influence the management of a company in any other manner. To comply with regulations, individuals holding more than 5% Beneficial Ownership in a company must submit their information to the CIPC. Furthermore, any changes in Beneficial Ownership must be updated within five days of the change. Once the information has been captured on the CIPC’s platform, it is processed, and a confirmation certificate will be issued. “Failing to establish and maintain a Beneficial Ownership Register may prove dire for companies and their directors alike. One may face investigations, a compliance notice, severe penalties and fines, and directors of companies may be disqualified,” said Tax Consulting SA. Paschini said that the compliance burden ultimately rests on shareholders, directors and owners of companies to comply with the CIPC’s new requirements. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://businesstech.co.za/news/trending/702921/big-change-for-businesses-in-south-africa-with-3-months-to-comply/

Edward West | 10 July 2023 AVI, parent company of I&J, has abruptly terminated a long-standing BBBEE partnership with a consortium led by prominent entrepreneur and former anti-apartheid activist A major corporate standoff is brewing between one of South Africa's largest fishing groups, I&J Ltd and its empowerment partners over lucrative fishing rights. AVI, parent company of I&J, has abruptly terminated a long-standing BBBEE partnership with a consortium led by prominent entrepreneur and former anti-apartheid activist Khusta Jack. Jack, chairman of Main Street 198 Ltd, was asked to resign voluntarily or face removal from the board as I&J starts a new partnership with a different group of BEE partners. Jack has slammed AVI for adopting what he says is a revolving door approach to dealing with its BEE partners. "I told them I will not resign under duress. This is a vile perversion of the spirit and principles that underpin the policy of broad-based black economic empowerment, and endeavours towards achieving economic transformation. "We are going to assert our rights. We are going to escalate this matter to the Minister of Fisheries and Environmental Affairs Barbara Creecy and the BBBEE Commission. “We feel we have been used and then cast aside,” said Jack. He said I&J had won lucrative, long-term commercial fishing rights from the government just over a year ago, in part because of their empowerment credentials flowing from their partnership with Main Street which until the abrupt termination of the deal last week held 20% of I&J shares. “If it wasn't for our participation I&J would never have been awarded those highly valuable commercial fishing rights. I&J applied for those rights on the basis of the 20% shareholding attributable to our empowerment group. “But now that the rights have been awarded and AVI has got them in the bag they turn around to us and say you can go now we have found new BEE partners. “How does any well-respected corporate entity treat its business partners in that fashion it has had a long and successful association with? “We are simply told to move on to make way for a new BBBEE entity which had no role in the group when the fishing rights were applied for and awarded. “As a result we will derive no benefit whatsoever from the long-term rights that our involvement was instrumental in securing. “This is the most vile perversion of the purpose, principles and objectives of broad-based black economic empowerment. “We will be lodging a complaint with the BBBEE Commission and calling for an investigation, and that appropriate remedial measures be taken. We will also be notifying the Minister of Fisheries and Environmental Affairs of this violation of BBBEE principles and requesting that she authorizes her own investigation into this matter. “We have every reason to believe the government, which awarded the long-term rights to I&J on the back of our involvement as an empowerment partner will take a very dim view of this revolving door approach to BBBEE. It goes against the spirit of everything that the policy was designed to achieve,” said Jack. Main Street 198 is a broad-based consortium which represents the interests of a diverse group including orphans and widows. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/companies/bee-partners-object-to-being-ousted-by-avi-in-i-and-j-fishing-group-a73f9b86-b0fd-4e91-8b0b-cfedfa989119

Ashley Lechman | 11 July 2023 Through an innovative model of blended financing, equity ownership, mentorship and skills transfer, Van Loveren and Mzala Wines’ Wines on Middelburg Vineyards, with assistance from one of South Africa’s biggest banks, FNB, is taking shape as a powerful engine of value creation and generational opportunity. Through an innovative model of blended financing, equity ownership, mentorship and skills transfer, Van Loveren and Mzala Wines’ Wines on Middelburg Vineyards, with assistance from one of South Africa’s biggest banks, FNB, is taking shape as a powerful engine of value creation and generational opportunity. Farming is a capital-intensive, long-term process. It requires access to natural resources such as land and water, expertise (both in labour and management) and finance (capital). New farming initiatives often only show results and profit after years or decades. The agricultural sector poses unique constraints to the inclusion of small-scale black farmers, and overall transformation in the sector is slow: research from Wandile Sihlobo and Mzukisi Qobo at Wits University in 2021 found that black farmers accounted for just 5–10% of overall commercial agricultural production in South Africa. To address this challenge, FNB and Van Loveren Vineyards partnered to explore an innovative inclusive financing and a development model that creates significant value. The result was Middelburg Vineyards, a project that has been more than a decade in the making. In 2011, Van Loveren identified an 832-hectare tract of empty Karoo bushveld on the outskirts of Robertson with the potential to become a productive farm. The process of applying and being granted water rights for the land took seven years, during which time an empowerment partnership was formed to commercialise the land and contribute to transformation. The result was Middelburg Vineyards, a company co-owned by Van Loveren and Mzala Wines, an empowerment structure made up of Van Loveren employees. Mzala holds 30% of the equity in Middelburg Vineyards and two seats on the board. Van Loveren invested capital into the project, and FNB, which joined the project in 2018, provided a combination of commercial debt and grant funding. Phillip Retief, CEO of Van Loveren Vineyards, said, “Business analysts think in quarters, CEOs think in financial years, but farmers think in generations. FNB has been a partner of Van Loveren’s for many years, and their generous contribution to the Middleburg project makes us even more proud to be associated with them. We received commercial finance from FNB, but the quicker conduit to the realisation of this dream of ours was their grant funding, which was significant. FNB’s foresight and commitment allowed a greenfield project, which was highly capital intensive, to come to fruition much more quickly than it would have if it was fully financed.” The project has already created substantial, tangible value. When the land was first identified, it had a value of R6 million. In 2019, the first vineyards were planted, alongside cherries, almonds and citrus, and take-off agreements for the produce have been finalised. Today, after the planting of fruit and vineyards and the construction of dams, irrigation, trellises and other infrastructure, the land is worth approximately R117 million, with its long-term value yet to be realised. Gert Breet, Head of Business Development at FNB Agribusiness, said, “There were three key components necessary to the success of the Middelburg project. Firstly, we needed to partner with like-minded stakeholders. They needed to share the same vision of success and transformation and adhere to the same principles. Secondly, we needed a partnership model that would support the outcomes we were pursuing and which would do so over a generational time-frame. Finally, we needed innovative thinking around the application of this model and the way we structured ownership and finance. I’m proud to say that in this instance, all three components have come together, and the result is, I believe, a model that ought to be examined and replicated more widely.” Van Loveren has been a pioneer of innovative socio-economic development over the past two decades. Prior to Middelburg, the company launched the De Goree initiative, which saw 138 hectares of vineyards planted in partnership with a 52% ownership structure comprising 42 female and 46 male workers and a four-member board of directors. De Goree’s grapes are used to produce Van Loveren’s Five’s Reserve wine range, the profits of which are shared with employees. In 2015, Van Loveren launched Olyfberg, another B-BBEE project with the Karaan Family Trust as a 51% shareholder, which increased the black-owned grapes harvested by Van Loveren to 15% of its total. Mzala was designed to include a smaller group of shareholders than the De Goeree initiative, allowing them to more easily be trained and upskilled as board members and agricultural investors. Mzala comprises eighteen shareholders, all of whom, with the exception of Livingstone Stanley, are Van Loveren employees. Stanley, an industry expert, was engaged for his business acumen and to act as a mentor to the other shareholders. “I am privileged to be involved in a project of this nature,” Stanley said. “Without FNB’s terms on the commercial loan and grant funding contribution, an ambitious dream would have been almost unattainable. FNB’s funding reduced the risks involved in an enterprise of this nature, giving the stakeholders the room to contribute, learn and lay the groundwork for growth and development. The challenge now is to farm this as a business, to create wealth, and hopefully to declare dividends in time. Agriculture is not a quick fix, but it does have the potential to create lasting, generational change.” Retief said, “Once Middelburg Vineyards begins to show a commercial return, the shareholders of Mzala will be able to diversify and pursue other opportunities. There’s exciting potential for this model to contribute to broad empowerment and generational wealth, and more importantly, to inform other projects of this nature, especially those with government as a key stakeholder.” The next leg of the project will involve alignment with sustainability themes, including climate risk, as well as enhanced data management, mapping and project development. Breet said, “The model is a testament to what can be achieved if you partner, collaborate and think outside the box a bit. This project also tracks the evolution of the involvement of banks in the South African economy. It’s no longer a straightforward commercial view. We are focused on the long-term impact we can create, on the security of generational opportunities for wealth, and on the outcomes for beneficiaries.” In 2022, the first Middelburg Vineyard crops were harvested, marking a milestone in the decade-long journey. Stanley further said, “What makes this project unique is that we’re creating real value. It’s not a check box or short-sighted exercise. It’s something special, and its achievement should not be underestimated. Our children will see more benefits from this project than we will. That’s the dream: a thriving farm that will outlive us all.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/business-report/entrepreneurs/middelburg-vineyards-an-innovative-partnership-driving-inclusive-agricultural-growth-3482622b-74e4-4d9d-8e79-c448ed7ee86b

Chrislynn Sias | 8 July 2023 When people apply for employment, they find most employers require job experience. And when you have just completed your high school career, the only experience you have is sitting in a classroom. At the end of June,119 learners graduated from the Cape Skills and Employment Accelerator – a City of Cape Town-funded project, administered by the Craft + Design Institute (CDI). The project focuses on creating employment opportunities for youth and women in the clothing and textile industry in Cape Town. The group of 119 received their National Qualifications Framework-level training certificates from Boland College and the Cape Town Work Based Learning Academy, which marks a final milestone of success on the project. The first 17 graduates completed their learnerships on the project last year. One of the previous graduates who participated in the project is Tiana Daniels. She is currently a professional model and content creator, in the process of establishing her own personal enterprise. “I began this programme directly following my completion of high school, so I was essentially unaware of what to anticipate. However, it has proven to be an invaluable experience, as I’ve learnt a diverse range of valuable skills, from time management to properly altering a garment.” According to Daniels, the programme has broadened her horizons with a plethora of opportunities and inspiring ideas. “For instance, I have discovered an interest in the business side of the fashion industry, which has motivated me to pursue a degree in business management.” Daniels said in addition to her acquiring proficiency in sewing, her educational journey has encompassed a “multitude of invaluable skills within the industry”. “This includes being able to accurately determine the cost of a garment and acquiring the ability to skilfully thread any sewing machine. Such knowledge has increased my capability of understanding various aspects within the field.” Erica Elk, group CEO of the CDI, said the outcome had been a remarkable success, given the project started during the Covid-19 pandemic. She said they had initiated the project in the midst of a very difficult period for employment creation and for businesses trading in the creative industries. “We are proud of the outcome, through which so many young women have gained an NQF4 Learnership qualification as a machinist. While they were learning, 27 CDI member SMMEs hosted the learners by providing the site for workplace learning to take place, and hopefully with a job at the end of each learner’s 12-month journey,” said Elk. She added that it was not just a skills development project for youth. The CDI placed emphasis on the development of each business and their capacity to grow. Alderman James Vos, the City of Cape Town’s Mayoral Committee member for Economic Growth, said the project was designed to respond to a skills need in Cape Town’s high growth industries and the needs of youths wanting to become part of the City’s workforce. According to Vos, there is a direct correlation between South Africa’s unemployment crisis – which largely affects the youth – and the dearth of valuable skills. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.iol.co.za/weekend-argus/news/cape-youth-boosted-as-119-learners-graduate-from-the-cape-skills-and-employment-accelerator-and-find-work-f84e3079-af2d-4644-87c3-7d96e23f9761

Bongani Mdakane | 9th Jul 2023 The Black Business Council (BBC) is urging financial institutions such as major commercial and development banks to reconsider their lending criteria and give preference to black-owned businesses operating in the mining sector. The emphasis, said the BBC, should be placed on coal and logistics sectors, arguing that energy transition could not be done at the expense of closing coal power stations and abandoning those coal towns as white elephants. The council said the rationale for this was based on a lived experience of many black businesses in these sectors finding it difficult to access funding due to criteria prohibitive to black-owned businesses expanding their businesses. Speaking to Sunday World, BBC president Elias Monage said an application lodged in April by his organisation with the Competition Commission alleging collusion bears testimony to white business being opposed to the country’s transformational agenda – hence the refusal by banks to fund black businesses. “The BBC takes note of white businesses which are funding NGOs to oppose transformation agenda and spread a negative narrative against black empowerment. The Preferential Procurement Bill that is before parliament must include a provision for Africans, particularly black women, youth, people living with disabilities, to be given 40% of the value of the project as part of addressing the imbalances of the past. “We remain resolute and firm that t parliament must seriously address empowerment category within the bill before it becomes law,” said Monage. In February, the council lodged a complaint with the commission, raising concerns about big banks failing to fund black-owned businesses. Monage said no response had been received regarding their complaint from the commission. “We are disappointed as we view this issue as a critical matter that needs the urgent attention the commission. “We will be meeting with our lawyers to plan a way forward to deal with the matter as this creates more challenges for black-owned business to be sustainable, and to survive current economic challenges faced by business,” said Monage. In its complaint of February, the organisation outlined difficulties and challenges affecting black businesses, and the failure of businesses to access funding from major banks in the country – and a decision that banks would not fund coal mining in South Africa. Monage said: “The timing and communication of the decision of the banks raises a suspicion that they may have coordinated or colluded in contravention of section 4(1)(b), alternatively 4(1)(a) of the Competition Act. 3. “The banks are individually and collectively dominant in the market for business funding. The refusal of banks to fund coal may also constitute abuse of dominance in contravention of various subsections of section 8 of the Competition Act, including exclusionary conduct against junior and emerging black miners, who are in early stages of entry into coal mining (large mining groups are predominantly exiting or have exited the market), by refusing to supply an essential facility, namely business funding to junior and emerging black miners.” The council said the effect of this “has been too substantial to lessen competition in the market, in that coal has been made to be uncompetitive against other energy sources”. “The conduct of the banks also has the effect of raising the price of electricity paid by consumers in South Africa … thereby harming the public interest objectives of the Competition Act. 6. “The BBC requests the Competition Commission to investigate the conduct of these banks and decide if the Competition Act was transgressed.” Commission spokesperson Siyabulela Makunga said: “The commission has received a complaint from BBC. The issues raised in the complaint are being investigated. The commission has been engaging on the matter with the BBC executive, and we prefer exhausting these engagements before making public comments.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://sundayworld.co.za/news/business/bbc-rebukes-big-banks-for-shutting-out-emerging-black-coal-miners/

Creamer Media | 7 July 2023 Take a walk past the Ceramic Industries factories in Vereeniging, Krugersdorp and Hammanskraal on any given day and you may come across informal traders, tilers, transporters and other artisans milling nearby the company’s headquarters hoping for an opportunity for a ‘piece job’ or a chance to earn a day’s honest living. In response to this pressing need in the community, Ceramic Industries, along with business incubator, Vantage Advisory launched an Enterprise Development project that offers interested tilers and transporters in Hammanskraal the opportunity to formalize their enterprises by aiding and guiding them through a structured incubation program. The initial step was to register all 42 beneficiaries with the Companies and Intellectual Property Commission (CIPC). Following registration, the SMEs were accepted into a business development support program designed to assist entrepreneurs in shifting from informal to formal enterprises so that they, too, could contribute to their community's socioeconomic development. On the 8th of July 2023, Ceramic Industries will host an Awards event at Zenzele Park in Boksburg for its Enterprise & Supplier Development Graduation in recognition of SMEs that have achieved the greatest revenue growth and employment creation. Ceramic Industries is Africa's leading maker of high-quality, stylish, trendy tiles and bathroom ware, with a focus on responsible corporate responsibility and the social and economic development of formerly disadvantaged individuals with eight factories, seven in South Africa's Gauteng province and one in Australia. Steered by effective leadership towards responsible corporate responsibility, Ceramic Industries is conscious of the collective challenges our nation faces and intentional in its approach to creating meaningful and sustainable interventions which promote the social and economic development of previously disadvantaged individuals. The twelve-month Business Development Support (BDS) programmes gave the SMEs an overview foundation of various skills, processes, and compliance requirements that are essential skills for any start-up business. Says Vantage Advisory Director, Luncedo Mtwentwe: “Entrepreneurship cannot be taught in the classroom. Now that we have introduced basic business concepts to our beneficiaries, we want them to apply the knowledge they have gained in more practical ways in their businesses. Ceramic Industries’ Tabisa Ngubo adds that the organization offers myriad business opportunities to its Enterprise Development alumni but also encourages them to spread their wings beyond the exposure that they gain from Ceramic Industries. “It is incredible to witness the growth amongst our intake of artisans especially when they literally present their offerings in a boardroom setting with the verve and confidence of skilled business practitioners. True empowerment is about seeing individuals leapfrog to new heights and become fully independent to the point of even hiring their own staff and turning their businesses into going concerns. Some of our ED suppliers now own entire fleets and are strategic partners in our business value chain. Our ED awards are about encouraging more small businesses to grow with us,” says Tabisa Ngubo, Ceramics Industries CSI Coordinator. Ceramic Industries is devoted to broad-based economic transformation through the expansion of entrepreneurs and suppliers, as well as the creation of competitive marketplaces for them to create more jobs and build sustainable communities. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.engineeringnews.co.za/article/unlocking-true-enterprise-development-from-the-streets-to-the-boardroom-2023-07-07

Roy Cokayne | 7 July 2023 Applicant says the new system has relegated its B-BBEE Level 1 rating to 10% of its tender scorecard and ‘elevated 100% black ownership to 50% of the scoring’. Contractors say it is unconstitutional, irrational, and will lead to ‘obvious and avoidable’ disadvantages for potential tenderers. The South African National Roads Agency (Sanral) is facing a high court challenge after allegedly unilaterally introducing a new preferential procurement scoring system for its tenders. The new scoring system allegedly significantly downgrades the importance of the Broad-Based Black Economic Empowerment (B-BBEE) Act ratings of most bidders. Cape Town-registered H&I Construction (Pty) Ltd has launched an urgent application in the High Court in Gqeberha to interdict Sanral from implementing its new scoring system when adjudicating two specific tenders, pending an application to review and set aside this new scoring system. H&I Construction will be applying for the latter in Part B of its application on the grounds that the new scoring system: Does not comply with the requirements set out by Section 2 of the Preferential Procurement Policy Framework Act 5 of 2000; and Was introduced with H&I Construction being consulted. Francis Chemaly, commercial manager of H&I Construction, said the new scoring system that Sanral now seeks to employ “is unconstitutional and irrational and therefore reviewable both on grounds of legality and under the Promotion of Administrative Justice Act. ‘Unfair, uncompetitive, cost-averse’ “Sanral introduced these changes to its tendering system without consulting those directly affected by it, including the applicant [H&I Construction],” said Chemaly. “The proposed new scoring system is so unfair, so irrational, uncompetitive and cost averse, that potential bidders such as the applicant [H&I Construction] will simply not be able to present a bid on a viable, cost effective basis, and have any hope of scoring sufficient points in a fair process to have the bid awarded to it, should Sanral be permitted to proceed with its new scoring system for these tenders.” Moneyweb emailed Sanral a list of questions about the new scoring system. Sanral GM for communications and marketing Vusi Mona said the matter is currently being processed legally. “There is a litigation process that is currently underway and we are finalising our legal papers. You will appreciate our reluctance to litigate through the media. However, once all papers have been served and are before court, we may be in a better position to consider responding to the media queries under discussion,” he said. Chemaly said Sanral’s new scoring system has relegated H&I Construction’s B-BBEE Level 1 rating “to a mere 10% of its tender scoring scorecard and elevated 100% black ownership to 50% of the scoring”. He said it will make it practically impossible for H&I Construction and other tenderers in a similar position to participate fairly and competitively in a transparent, cost effective bidding process. Not board-approved? Chemaly said it is unclear if the new scoring system has been approved by Sanral’s board and the absence of any such evidence on the Sanral website – where other public procurement and supply chain management procedures that were sanctioned by the board are to be found – “suggests that Sanral’s decision to introduce the new scoring system is invalid on that narrow ground already”. Chemaly said Sanral was given the opportunity to urgently revisit and remove the inclusion of the new criteria for the two tenders but refused to do so. JSE-listed construction and engineering group Wilson Bayly Holmes-Ovcon (WBHO) has applied to join Part B of the application. A further 11 construction companies, including JSE-listed Raubex and Stefanutti Stocks, were cited as respondents and have provided signed affidavits in support of H&I Construction’s application. Chemaly said these companies were cited as respondents by virtue of their interest in this application as major contractors in the construction industry. He said these companies are potential tenderers for the tenders that have already been advertised that form the subject of this application and other Sanral tenders that have been advertised with the same new scoring system. “They also have an interest … in the lawfulness and validity of Sanral’s new scoring system generally, given that Sanral has indicated it intends using the scoring system for its public procurement on various tenders nationally,” he said. Chemaly said all the construction companies listed “stand to suffer the same prejudice, albeit to varying degrees” as H&I Construction, under the new Sanral scoring system. Scorecard changes He said Sanral in the past used a bidder’s B-BBEE rating to allocate the preferential procurement part of the score, awarding 10 or 20 points based on the tenderer’s rating. “However, as a result of the amendments to the tenders, Sanral has relegated a bidder’s B-BBEE Level rating to a mere one point (in the case of a 90/10 tender) or two points (in the case of an 80/20 tender) and has elevated black ownership and sub-contracting to targeted enterprises to respectively five points (10 points in the case of 80/20) and four points (eight points in the case of 80/20) of the scoring of tenders that use the 90/10 scoring regime, i.e. tenders with a value of more than R50 million,” he said. Chemaly stressed H&I Construction’s application does not intend to disrupt the evaluation of any tenders under Sanral’s previous preferential procurement scoring system. Where the new system falls short He listed some of the reasons the new scoring system falls far short of the legal requirements set by the constitution for public procurement. One of these is the fact that Sanral, according to the tender, will engage with bidders independently further in regard to the scoring criteria, which creates the real danger of the process not being transparent and the black ownership requirement being manipulated even further on entirely subjective and variable grounds. Riaan de Necker, group MD for WBHO’s road & earthworks division, said WBHO is intending to participate in 11 tenders issued by Sanral, which now fall to be evaluated in terms of the new scoring system. De Necker said WBHO shares H&I’s concerns about the constitutional invalidity and unlawfulness of Sanral’s new scoring system and intends to participate in Part B of H&I’s application as a co-applicant. He said WBHO wrote to Sanral about each of the current tenders for which group companies intends to submit a bid. It sought an undertaking that each of these tenders be postponed until the issues concerning the scoring system are determined by the court. De Necker said Sanral refused to provide such an undertaking, which is unreasonable. He said the disadvantages of potential tenderers being required to submit bids and these bids being evaluated and contracts awarded on the basis of the new scoring system, which is under review, are obvious and avoidable. ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.moneyweb.co.za/news/south-africa/sanrals-new-preferential-procurement-scoring-system-challenged/

Sandi Kwon Hoo | 7 July 2023 A pastor was ordered to repay the Agricultural Sector Education and Training Authority an amount of R1.9 million after entering into a plea agreement with the State. A BLOEMFONTEIN pastor, Lerato Raphael Mokoteli, was ordered to repay the Agricultural Sector Education and Training Authority (AgriSeta) an amount of R1.9 million after entering into a plea agreement with the State. Mokoteli was charged for fraudulent claims made between 2016 and 2019, where he submitted invoices for offering training and mentorship to a food garden operation in Kimberley. In a joint statement by the Special Investigating Unit (SIU) and the National Prosecuting Authority (NPA), it was indicated that Mokoteli paid R1.9 million to AgriSeta on June 15. “In March 2015, Mokoteli and Anthony Dywili fraudulently applied to AgriSeta for R1.9 million funding to provide training and mentoring for a food garden operation in Kimberley. Mokoteli and Dywili claimed that the application was a joint venture between Business Against Crime and Dipalemo Training Strategic Services, an AgriSeta accredited service provider. However, such a joint venture did not exist. Dipalemo was not aware of the application and did not receive a cent.” SIU spokesperson Kaizer Kganyago stated that they investigated allegations of corruption and maladministration in 2018, where it was discovered that the Northern Cape Empowerment Academy in which the accused had entered into a memorandum of understanding along with Business Against Crime, led by Dipalemo, knowing very well that the academy only existed on paper. “Between June and November 2016, Mokoteli submitted invoices totalling R1.3 million to Business Against Crime on behalf of Dipalemo. Mokoteli did not have any relationship with Dipalemo. “Mokoteli submitted a close-up report to AgriSeta on behalf of Dipalemo that had never rendered any training.” He added that 50 beneficiaries were paid a stipend totalling R219,000 and were awarded certificates of competency in food operation. ”They claimed that R381,564.86 was used for the administration of training. Dywili did not disclose to AgriSeta that R600,000 of the funding was unspent, in violation of the terms of the agreement.” Kganyago indicated that R317,000 of the funding was paid to a non-profit organisation called Christian for Peace in Africa, which is chaired by Dywili, in July 2016. “The bank account of the organisation was opened in June 2016.” NPA regional spokesperson Mojalefa Senokoatsane added that the accused – Moketeli, Dywili along with the AgriSeta chief executive officer Jeremia Sello Madiba, between 2008 and 2017, were charged with various counts of fraud and money laundering. “Madiba allegedly awarded the tender without the required decision by the board of directors of AgriSeta, in contravention of the Public Finance Management Act (PFMA). He will be appearing in court on a PFMA charge on August 28.” Senokoatsane said Mokoteli entered into a guilty plea agreement with the State on May 26. “In terms of the agreement, Mokoteli pleaded guilty to two counts of fraud and two counts of money laundering and agreed to pay back R1.9 million to AgriSeta. “Mokoteli was sentenced to 10 years imprisonment on two counts of fraud and five years for two counts of money laundering on June 14. The sentence was suspended for a period of five years on condition that he is not convicted of similar offences during the period.” ‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’. https://www.dfa.co.za/news/pastor-ordered-to-pay-back-r1-9-million-in-fraudulent-funding-ac0f9615-4220-4f5a-9f2b-796be9d86a23/