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VAT is a Total Measured Procurement Spend (TMPS) exclusion as per  Clause 6.1 of Statement 400 of the Amended General B-BBEE Codes of Good Practice :   “6.1 Taxation: any amount payable to any person representing a lawful tax or levy imposed by an organ of state authorised to impose such a tax or levy, including rates imposed by a municipality or other local government."   Therefore, to confirm that VAT is an exclusion from an organisation’s TMPS, it must be recorded as such in its Audited Financial Statements or Financial Statements.   Support Services  are available to guide members on TMPS Exclusions.

From time to time, the South African National Accreditation System (SANAS) publishes a list of B-BBEE Rating Agencies that no longer have SANAS accreditation due to it being withdrawn voluntary or involuntary, or due to its expiry. The core aim of publishing the list is to assist those receiving B-BBEE Certificates in identifying invalid credentials.   This list will further assist B-BBEE Rating Agencies when verifying the element of Enterprise and Supplier Development. It is vital to take note of the date of withdrawal or expiry as a B-BBEE Certificate will remain valid for 12 Months if issued before the date that a B-BBEE Rating Agency lost its accreditation.   B-BBEE Certificates issued by SANAS Accredited B-BBEE Rating Agencies must contain the unique SANAS Accreditation Symbol to ensure that the B-BBEE Verification Certificate is valid.   B-BBEE Verification Services  are available to assist members to ensure that they understand the requirements for Valid B-BBEE Verification Certificates.

The author or deponent of a Sworn Affidavit must be a duly represented registered Director / Owner / Shareholder / Member etc. of an organisation as per company documentation. Where an organisation has foreign shareholders, the same principle applies. A Sworn Affidavit is invalid if anyone other than duly represented individuals function as a deponent.   Certificate Collection Services   are available to assist with identifying valid and invalid Sworn Affidavits.

For most SETAs, the deadline for submitting Workplace Skills Plans (WSPs) and Annual Training Reports (ATRs) is 30th April 2025. Where organisations must submit these reports to their relevant SETA, they should obtain points under the Skills Development element.   As Skills Development is an identified Priority Element, not submitting an ATR and WSP could trigger the Discounting Principle, which will impact an organisation’s overall score.   The information contained in the WSP and ATR must coincide with the data submitted to an organisation's B-BBEE Rating Agency at the time of their B-BBEE Verification.   Both the WSP and ATR are strategically designed documents that systematically identify any skills gaps, which align with the government's overall Skills Development Strategy. Both intend to track development, plot succession plans, and monitor the overall progress of organisations against set targets

Organisations are encouraged to achieve Bonus Points by graduating an Enterprise Development Beneficiary to a Supplier Development one. Therefore, an organisation may enter into a Supplier Development Programme directly without first going through the Enterprise Development phase but will not earn the Bonus Points available. Statement 400, clause 3.8 of the Amended General B-BBEE Codes of Good Practice highlights the rationale behind this:   “A Supplier Development Beneficiary is a part of the Measured Entity's supply chain, whereas an Enterprise Development Beneficiary is not.” Enterprise & Supplier Development Services are available to guide members on Enterprise & Supplier Development Initiatives.

Whilst making a financial contribution to an Enterprise Development or Supplier Development Beneficiary is deemed a contribution, it does not always constitute a sustainable claim. A claim for each of these sub-elements needs evidence that demonstrates an organisation’s intervention has contributed to growth, sustainability, as well as operational and financial independence.   The monetary route is one contribution option. However, other avenues are contributing an asset or upgrading equipment. In such a case, the value of the asset or the upgrade will determine the claim. It is important to note that only the asset or upgrade is a claim. A B-BBEE Rating Agency will not recognise other line items on an invoice that do not relate to the initiative.   When submitting a claim for granting an asset, it is irrelevant whether it is new or pre-owned, imported or locally produced.   The Enterprise & Supplier Development Services are available to help members ascertain that their investment is an authentic contribution.

Statistics South Africa is the source used to determine the Net Profit After Tax (NPAT) for calculating the targets for Enterprise Development, Supplier Development and Socio-Economic Development. The latest statistics  were published during December 2024. The statistics in this version will be for the 3rd quarter of 2024.   Any B-BBEE Verification from hereon would most commonly apply the latest Industry Norm published by Statistics South Africa. For example, if a B-BBEE Verification takes place in January 2025, the latest published stats to be used would be those posted during December 2024.    Technical Compliance Services  is available to guide members in calculating their Targets.

On 20 December 2024, Norton Rose Fulbright South Africa Incorporated made an application to the High Court of South Africa raising concerns on the implementation and practical components of the Legal B-BBEE Sector Codes Of Good Practice. The Founding Affidavit  sights many concerns over certain areas of the Legal B-BBEE Sector Codes Of Good Practice which seek to be addressed. The BEE Chamber will be watching this space very closely and looking forward to the way onward on the implementation of the Legal B-BBEE Sector Codes Of Good Practice. Technical Compliance Services  are available to guide Members on the status of the Legal B-BBEE Sector Codes Of Good Practice.

The concept of “Black New Entrants” is found under the Ownership scorecard whereby the Amended General B-BBEE Codes of Good Practice allows for Two Points to be scored based on a 2% Compliance Target.   The definition contained under Schedule 1 of the Amended General B-BBEE Codes of Good Practice  defines “Black New Entrants” as “ Black participants who hold rights of ownership in a Measured Entity and who, before holding the Equity Instrument in the Measured Entity, have not held equity instruments in any Entity which has a total value of more than R50,000,000.00 measured using a standard valuation method.”   Technical Services  are on hand to assist with the understanding of the above and how it is recognised.

Although entering into an Enterprise or Supplier Development loan contract is generally done with the best intentions, some loans issued will inevitably be defaulted on or, in the worst case, a Beneficiary will refuse to repay it. When giving a loan, an organisation has the full rights of recovery; however, this has to be clear in the terms and conditions. First and foremost, a loan must take the form of a debt instrument; thus, it must never be a grant disguised as a loan.   Any loan made with the intention of not receiving repayment of the capital amount is not a loan but a grant and must be claimed as such. Consequently, claiming a loan under Enterprise or Supplier Development instead of a grant is Fronting Practice.   However, if a beneficiary fails to repay a bona fide loan, an organisation may offer a Beneficiary a grant which will allow them to repay the loan. Otherwise, an organisation can write off the loan or follow the legal route based on the terms and conditions of a particular loan.   Enterprise & Supplier Development Services are available to guide Members to ensure their contracts align with the requirements of the relevant code.

A B-BBEE Code of Good Practice is a framework of measurement on a Measured Entity scores points to achieve a specific B-BBEE Status Level. It consists of all principles, calculations, and methodologies on how this is executed.   As per Clause 3 of Statement 000 of the Amended General B-BBEE Codes of Good Practice , the following is stated:   3. APPLICATION OF THE CODES   3.1 The   following Entities are measurable under the Codes:     3.1.1 all Organs of State and Public Entities;   3.1.2 all Measured Entities that undertake any economic activity with all Organs of State and Public Entities;   3.1.3 any other Measured Entity that undertakes any economic activity, whether direct or indirect, with any other Measured Entity that is subject to measurement under paragraph 3.1.1 to 3.1.2 and which is seeking to establish its own B-BBEE compliance.     Technical Services  are on hand to assist with the understanding of the above.

Some time ago, the B-BBEE Policy Unit published a FAQ document online which assisted the implementation of B-BBEE Legislation. One of the FAQs included the rules around a Commissioner of Oaths which stated:   Q -  Can a B-BBEE affidavit (Sworn Affidavit) be commissioned by a Commissioner of Oaths connected to the deponent that is an EME or QSE with more than 51% ‘Black’ Ownership? For example, ABC Traders’ Financial Director is a Commissioner of Oaths; can that person commission its Sworn Affidavit?   A -  Commissioner of Oaths must be independent as per the Justices of the Peace and Commissioners of Oath Act. Therefore, ABC Traders may not have its Financial Director commission their Sworn Affidavit   Technical Services  are available to assist Members in further understanding the above.