On 5 May 2015 the Department of Trade and Industry published a notice regarding the implementation of the Revised BEE codes as well as the Revised Sector Codes (see attached). The positive impact is that the DTI have extended the effective date of the Revised Codes for all businesses with a financial year ending before 30 April 2015.
This means that, contrary to the Government Gazette No 36928 of 11 October 2013, all BBBEE verifications (including EME’s) conducted using the financial period ending BEFORE 30 April 2015, can be verified using the old codes. All these entities will also be deemed Empowering Suppliers.
The EME and QSE affidavits for black owned entities, under the Revised Codes, will still be allowed however some clients have indicated they are running into difficulties in the market place when producing this document as proof of their BEE status. This statement allows for EME’s below the R5 million turnover threshold to still obtain a valid BEE certificate under the old codes.
The Sector Code transitional period has been extended to 31 October 2015. This means that any business falling under one of the following Sectors (Transport, Tourism, Construction, Agriculture, Chartered Accountants, Forestry, Property, ICT or Financial Services) will continue to be verified under the current Sector Codes.
As this news may be frustrating for some, Into SA is unfortunately reliant on the legislation governing BBBEE, which seems to be amended as and when deemed necessary. The upside however, is that it does give businesses a little more time to realign their BEE strategies to the revised codes.
Should you have any queries in this regard please contact us on “firstname.lastname@example.org(Mail us!)”:mailto:email@example.com.