Hand In Hand

August 14, 2020

Are you aware that, for the most, B-BBEE Practitioners are the weakest link in terms of fulfilling the country's economic growth framework? Economists have established that increasing the diversity of shareholding, improving skills and expanding small business participation in supply chains are all components which could contribute to economic growth. However, only if it is done strategically by aligning with economic growth principles.

The BEE Act (The Act) has specific but broad, qualitative objectives which organisations and verification agencies generally choose to overlook in favour of the quantitative measurement benchmark of B-BBEE, namely The Codes of Good Practice (The Codes). However, subsequent amendments to The Act introduced a risk as to the legitimacy of an organisation's B-BBEE claims if they fails to recognise the link between The Act and The Codes. The consequence of failing to acknowledge the objectives of The Act could result in up to 10 years imprisonment
and up to 10% of a Juristic Person's annual revenue.