Many people assume you’ll automatically get a Level 1 BEE Compliance with your affidavit, but that’s not true. For an EME, you’ll get an affidavit for a Level 1, Level 2, or Level 4 based on the actual percentage of direct black ownership in your company. So that clears up the perception that only 100% […]
#BEEready: Retrenchments and BEE – when you retrench employees, how is your BEE verification audit affected?
As soon as the Verification Audit process begins, the process works on live data and information on the day of verification. If you retrench, be sure to do so before your verification audit starts. If not, the employees will be included at the time of verification regardless if you are planning for the retrenchment or […]
Black-owned means direct ownership, while Black controlled means ‘managed by black people’ for example, private equity investors and capital investment firms.
In BEE, discounted is NOT ‘disqualified’ – it simply means that you are “dropping a level”, or penalised with a level for not reaching the subminimum requirement on a priority element. Example: If you score 73/100 points overall when you are verified, and you did NOT comply with the subminimum of 40% compliance for the […]
Across all BEE Scorecards, there are Priority Elements with which you MUST comply at a minimum of 40%. The Priority Elements are: Ownership Skills Development Preferential Procurement and Enterprise and Supplier Development (ESD) If you are a QSE (turnover between R10million – R50million) and you HAVE Ownership (51% or more) then you can be verified […]
Dropping a level in BEE is the term used to describe the penalty for NOT reaching the subminimum requirements on priority elements of the BEE Scorecard. There are 8 levels of BEE compliance. If you fail to reach the subminimum (40%) for each priority element, your overall level will be determined based on your overall […]