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October 28, 2011

Government Reliance On A B-BBEE Scorecard Becoming A Reality

BY GAVIN LEVENSTEIN, CHIEF OPERATIONS OFFICER AT ECONOBEE

With any new activity we expect to see a build-up. I remember how it took just a few weeks to fill the streets with flags from all the countries participating in the Soccer World Cup. It almost happened overnight.

I found an article on AllAfrica.com, issued by the Gauteng Provincial Government, this article is one of the first times I have seen a department announce that they are going to be changing their system to be in full compliance with the new PPPFA legislation. This is obviously a great sign for B-BBEE. Not only is it going to encourage the use of a B-BBEE status as the only measure of empowerment but it is proof that an important government department is going to support the PPPFA.

 

During our last PPPFA and Tendering Workshop we discovered just how much difficulty government had in correctly adjudicating tenders, and how much additional admin it created. Now a BEE certificate is all that is needed. The trick though is making sure your score is better than your competitors.

 

The notice read as follows:


The Gauteng Provincial Government (GPG) is in the process of updating its Central Vendor Database with all mandatory vendor requirements in particular the BBBEE (Broad-Based Black Economic Empowerment) Certificates and Tax Clearance Certificates. Therefore, all business owners and suppliers currently conducting business with GPG are required to be BBBEE Compliant by 7 December 2011.


The aim is to ensure that service providers keep their active status of continuing to conduct business transactions with government.


Suppliers are encouraged to submit their BBBEE certificate or a letter from a professional (i.e. a bookkeeper or accountant) immediately to avoid that last minute rush.


Any South African National Accreditation System (SANAS) endorsed BEE (Black Economic Empowerment) rating company can assist service providers in obtaining a valid BBBEE Certificate. Service providers are therefore requested to update their company profile urgently by providing a valid BBBEE Certificate (only SANAS approved) as well as a valid and original Tax Clearance Certificate.


Exempt Micro Enterprises (EME's) are not compelled to submit a BBBEE certificate but a letter from a professional (i.e. a bookkeeper or accountant) bearing the professional's practice number. The letter must confirm that the Exempt Micro Enterprise (EME)'s turnover is less than R5 million per annum.

 

The implications of not submitting either the letter or the BBBEE certificate is the forfeiture of Preference points and hence, putting the company in a disadvantageous position in both Request for Quotation (RFQ) and Tenders.


The update of information is free and to the benefit of all parties.


All documents must be submitted to the Black Economic Empowerment (BEE) Help Desk, 78 Fox Street, Johannesburg between 08h30 and 15h30, Monday to Friday.

 

For more information on EconoBEE visit http://www.econobee.co.za/.   

 

Ends.

 

Issued By:

The Lime Envelope

On Behalf Of:

EconoBEE

For Media Information:

Angelique Meyer

Telephone:

011 704 7770

Email:

angelique@thelime.co.za

Posted by StaffWriter at October 28, 2011 7:23 AM