The dti has published a Notice of Clarification on the BEE Codes.
See below notice issued by dti Minister M Lindiwe Zulu, MP Acting Minister of Trade and Industry
By virtue of the powers vested in me in terms of sections 9(1) and 14 (2) of the Broad-Based Black Economic Empowerment Act, 2013 (Act No. 46 of 2013), I Dr Rob Davies, Minister of Trade and Industry, hereby:
(a) Confirm that the Amended Codes of Good Practice, gazette No 36928 will come into effect on the 1st May 2015. Clarify that all B-BBEE verifications conducted using the financial year ending before 30 April 2015 can be verified using the old Codes of Good Practice, gazette No 29617 and all B-BBEE verifications conducted using the financial year ending after the 1st May 2015 must be verified using the Amended Codes of Good Practice, with the exception of the Sector Codes.
(b) Further extend the transitional period for the alignment of Sector Codes to the end of October 2015. From the 1st November 2015 Sector Codes that are aligned shall be effective in accordance with section (a) above of this Notice. Sector Codes not aligned and ready for gazette by the end of October 2015, a consideration shall be made for them to be repealed.
(c) Determine that for the inaugural year of the Amended Codes of Good Practice, all valid B-BBEE certificates issued under the old Codes of Good Practice gazette No 29617, as well as the relevant Sector Codes should remain valid and should therefore be accepted and should be treated as empowering suppliers. For all EME (Exempted Micro Enterprises) certificates issued without Empowering Supplier Status, the interpretation stated in the Amended Codes of Good Practice clause 3.3.1, Amended Code Series 400 Gazette No 36928 will be applied, which state that “Exempted Micro Enterprises and Start-Ups are automatically recognised as Empowering Suppliers.”
(d) Black participants in Broad-Based Ownership Schemes and Employee Share Ownership Programmes holding rights of Ownership in a Measured Entity must only score points under paragraph 2.2.3 under the Ownership scorecard. 2. The amendments embodied in this Notice will become effective on the date of publication of this Notice.
What this means for you:
- If your financial year is prior to 30 April 2015 then you must be verified using the old codes. If your financial year is after 1st May you must be verified using the new codes. In essence the Codes have been delayed.
- If you have not yet been verified on your previous financial year, there is time to do so: the date of 30th April is no longer relevant. You can use the old codes for your next verification, even up to next year – as long as you use a financial year prior to 30th April 2015.
- Black participants in Broad-Based Ownership Schemes and Employee Share Ownership Programmes holding rights of Ownership in a Measured Entity must only score points under paragraph 2.2.3 under the Ownership scorecard. This means that a company that is 100% or 25% owned by a broad-based or employee ownership scheme will not earn points under any other indicator on the scorecard than 2.2.3 Participants in broad-based schemes” which is worth 1 point on the old codes, and 3 on the new.
Your verification agency may have asked you if you are a TOMSA levy collector and if not told you that you are losing out on earning points towards your BEE Scorecard. But what is it? Other than another travel acronym to add the long list, you may think.
TOMSA (Tourism Marketing Levy South Africa) is a private-sector initiative aimed at raising funds for the marketing of destination South Africa. Levy collectors range from accommodation establishments, tour operators and even car rental agencies, in fact any other companies whose core business is focusing on facilitating arrangements for inbound tourists visiting South Africa.
The levy is voluntary and collected by the Tourism Business Council of South Africa (TBCSA) and is given to South African Tourism to fund their extensive marketing commitments to promote South Africa as a tourist destination.
South African travel agents currently are not TOMSA levy collectors and hence ASATA Members are not required to contribute to the fund. ASATA Members are primarily involved in facilitating travel arrangements for South Africans whether it is for their corporate or leisure activity. For their domestic travel arrangements those travellers will pay the TOMSA levy in their capacity as a guest of the hotel, guest house, ground transport operator and or other companies in the supply chain.
In March the TOMSA Board agreed to extend their levy collector base to travel agents and other Tourism industry partners but no indication has been forthcoming as to the amount to be collected and ASATA has a concern that this would in fact be a double whammy for our customers as they would be paying the levy when they stay at most local hotels.
There is no doubt that we would support initiatives that encourage the promotion of South Africa but are cautious about burdening our customers with any further taxes or levy’s at this time!
If you need a letter explaining this position to your verification agency, please send a request to email@example.com