Archive for September, 2009
The Tourism sector code is based on the Codes of Good practice, however it has some differing weighting points, targets and definitions. The Exempt Micro Enterprises have a reduced threshold of R2.5 million and not R5 million. They enjoy automatic BEE level 4 and those, which have more than 50% black ownership, are elevated to a Level 3. The Qualifying Small Enterprise (QSE) threshold is between R2.5 million and R35 million, whilst the Generic threshold is above R35 million. The Tourism sector code has a two-phased approach, points and targets for 2012 and 2017
The main acclamation of the Tourism sector code is the prominence of skills development, which we believe should be the foundation that will spearhead Broad Based Black Economic Empowerment. The sector certainly took heed of Zuma’s emphasis on training and skills development as the cornerstone of transformation in the country. The skills development element now has 20 points, which is the highest on the scorecard until 2012. The sector code recognises the skills shortage in the country and that all the other elements of Broad Based Black Economic Empowerment can easily be achieved if the nation has skilled employees.
The reduction on the ownership element weight and targets affirms the need to shift focus from the ownership element to other elements of true empowerment. Ownership targets for the period up to 2012 for both QSEs and Generics was reduced from 25% to 21% and ownership fulfillment, net value and the bonus points were removed. The weighting points dropped from 28 to 25 for QSEs and from 23 to15 for Generic Companies. However there was a regression on the preferential procurement element, which was reduced from 20 to 15 points and Enterprise development, which was slightly reduced from 15 to 14 points.
Socio-economic Development points increased from 5 to 8 and included two additional indicators. A drive towards the inclusion into the mainstream economy of the black unemployed school leavers without work experience was included. Enterprises in the sector are encouraged to employ black new recruits with no prior work experience and the target is 10% of all new recruits. Furthermore if the enterprise is a TOMSA (Tourism Marketing South Africa) levy collector it earns 3 additional points.
EconoBEE assist companies to understand the B-BBEE codes and to produce and improve their scorecards through workshops, EconoBEE V3 Scorecard software and BEE managed services.
Our BEE Procured system is now working. We are using it for clients and it is saving us many hours or work. Basically it is a web based system that allows you to upload your procurement spend by suppliers and then lookup/link to that supplier’s master record. If there is a scorecard it automatically calculates your BEE procurement BEE score. If not, it still links to the record and automatically recalculates when/if a scorecard if uploaded.
As we get more and more scorecards, the entire procurement process will take minutes, rather than months.
- No more calling hundreds of suppliers for scorecards,
- No more capturing and calculating your procurement score.
Furthermore the system easily allows you to determine which suppliers are letting you down and how you can improve your procurement score.
remember that procurement for QSEs is worth 25 points and 20 points for generics.
The system is licensed on an annual basis for R2500 per annum, but you can try it out at no cost for your first 15 suppliers. Visit www.beeprocured.co.za
Every company in South Africa has procurement spend. When the codes of good practice talk of procurement they include even the milk for the staff members’ tea, the paper for printing, the office fan, to mention but a few instances. More often companies tend to ignore the smaller amounts spend from their procurement calculation. This has led to some companies claiming that they are net importers and so they will not get any points under the Preferential Procurement element of the scorecard. The fact that imports are eligible exclusions from the scorecard calculation makes it sometimes even easier to score more points. Even more pleasant for a company that imports the majority of their procurement is the fact that the small amount of local procurement is likely going to be from small suppliers. The small suppliers are likely going to be EMEs (businesses with annual turnover below R5 million) or QSEs (businesses with annual turnover between R5 million and R35 million). For procuring from these businesses an entity’s spend gets an enhancement because such procurement counts under two indicators. More still, it makes the calculation of Preferential Procurement points easier to follow and also easy to get scorecards from the fewer suppliers.
If I can make a statement that so inflames you that you speak without thinking and jump to conclusions because you get so emotional about the subject, does that mean your true feelings are showing?
There are lots of issues we, South Africans, or even the world population does not agree upon. There are some that are absolutely certain to raise blood pressure and yield a response that you maybe may not have made in the light of day.
Issues such as rugby/sport, religion and politics are top of the list. If I said I think the KZN Sharks are useless, I know some people would disagree vehemently, and some would get quite rude and aggressive. If previously they were very placid, then when a big issue confronts them and they become aggressive, what can we say about those people? Are they placid or aggressive?
Now to racism and other “isms”: How do we judge whether a person is racist? If the person is derogatory towards a group of people, is he a racist? If he is derogatory to one person, but applies his logic to all people who belong to that group, is he a racist. If he makes nasty comments about Jews, based on his experience with one Jewish person, is he anti-semitic?
I’d tend to say that all the above is racism, sexism, anti-semitic etc depending on the particular group who is insulted, or feels insulted. I would think that even if a person states he is not a racist or anti-semite (”some of my best friends are black/Jewish”), his actions at some point or another may prove otherwise. These actions/feelings could be deeply embedded in one’s psyche.
Now to Julius Malema, He tends to rub many people up the wrong way, particularly white people. Recently, in welcoming Caster Semenya he condemned white people in also not coming to the airport. The interesting point is how they reacted. Many made rude comments about Julius, his mother, his racial group.
A common comment was “We were working”. Who is the “we”? All white people, therefore excluding black people? Many whites fell into the trap that Julius, maybe inadvertently, had set. Their reaction proved the point that Julius is always making. They responded with rude, racial comments right back to Julius. Disagreeing with a person does not make you a racist or anti-semite, or even a Bulls or Western Province supporter . Making comments about the group as a whole does make you a racist etc.
The point is the reaction of many people brought out their true feelings. I guess it’s not easy to hold back when he makes very aggressive comments. In a strange way he brings the worst, and best out of people, and in some cases proving his point. If this is by design or not – it does not matter. It is the reaction of the person that counts, and how I and others perceive that reaction.
EconoBEE to hold a Sustainable Development Conference in October/November 2009.
Introducing the first EconoBEE Practical Sustainability, Reporting and Business Conference, presented in conjunction with Kulima Solutions, which will highlight the opportunities for your business to embrace the goals of sustainability. This introductory course will include an overview of the key concepts of sustainability.
Sustainable Development and reporting on sustainable development is becoming more and more important to businesses.
The aim of any business is to generate sustainable profits. The goal of sustainability is to achieve this while also minimising adverse impacts on society and the environment. Corporate Social Responsibility initiatives form part of a larger strategy of sustainability.
The key outcome of the course will be a roadmap for developing strategies and implementation plans for sustainability within your business.
This conference will help you identify opportunities for your business by making Business Sense out of Sustainable Development.
Key areas such as the Global Reporting Initiative (GRI), AA1000 and the JSE Socially Responsible Investment Index (SRI) will be covered in a practical manner.
The key speakers and presenters are Katharine Vincent (PhD) and Tracy Cull BA SocSci (Hons) who have extensive experience in sustainable development and corporate social investment, both in a practical environment and academically. Keith Levenstein, CEO of EconoBEE, who is currently responsible for designing a system to measure the effectiveness of sustainable development activities in businesses.
The two day conference will be presented at Gallagher Estate in Midrand, at Makaranga Garden Lodge in Durban and Belmont Conference Centre in Cape Town.
EconoBEE Announces the Launch of BEE Procured.
BEE Procurement accounts for 20 points on the broad based BEE scorecard. Points are the by purchasing from suitable supplies who themselves are BEE compliant, and have a BEE scorecard. The score depends on the type of supplier (size, percentage black ownership) as well as other technical aspects, such as a concept called value adding supplier. “It is important to take all aspects into accounts in order to maximize procurement points earned” explained Keith Levenstein CEO of EconoBEE.
Procurement is one element of the codes that does not have a specific target of spend. There is effectively no cost to the company to earn procurement points, unlike, for example, skills development where the company needs to spend 3% of its payroll to earn points. The difference though is procurement is quite an admin intensive task, and if done incorrectly will cost the company many points.
EconoBEE produced BEE Procured as a cost effective solution to the admin issue.
BEE Procured is a complete system that contains a database that with many thousands of valid scorecards, saving the company from having to call all its suppliers to get scorecard.. The database correctly analyses the scorecard to ensure that any points earn are maximized. BEE Procured goes even further. It allows the company to capture, or even import the names of their suppliers and the value of spend with the supplier. Using Link Technology BEE Procured then allows the company to quickly find valid scorecards for each of its suppliers. BEE Procured automatically and instantly calculates the points earned for its procurement.
If there is no scorecard for that supplier, BEE Procured will attempt to contact the supplier and obtain his BEE scorecard or certificate. Once obtained, the system will automatically take the updated scorecard into account and recalculate the points earned.
Many companies see procurement as an insurmountable admin issue and often ignore procurement or lose points. BEE Procured will typically decrease the time and effort to do procurement by up to 80%.
In the past three weeks we have had to take up issues on behalf of our clients with their verification agencies. In all three cases, the verification agencies agreed with our interpretations and calculations. In the first case the client went up from level 6 to level 5. In the second the client went from level 4 to level 3, and the last case from level 8 to level 6.
On average the score went up by 8 points. In one of those instances we pointed out an error to the verification agency where they had allocated two more points than they should have, but undercalculated 15 points on another element.
If we had not been involved with our clients and examined their preliminary scorecard in great details, and known exactly what score they should have achieved, the client would simply have accepted the scorecard handed to them. In some cases the client did complaint, but were almost ignored until we raised the issue via the correct channels and methodology.
In one instance, during the verification, the analyst gave a calculation and an interpretation. We disagreed, and the analyst said that is how it is done. We asked, as per clause 16.2 of the verification manual for the issue to be documented and we asked the agency to explain in terms for the relevant clause in the codes fo good practice. This was done and the agency came back within 2 hours to confirm their agreement with us. In another instnace we wer forced to loge a formal appeal. we asked the agency to supply us with their appeal procedure, and we spend at least 2 days drafting the appeal, giving suitable proof, evidence and precedents. The agency followed the procedure and came back to use agreeing with our interpretation, adding 7 points to our clients scorecard.
The conclusion: If we had not been involved our clients would be 1 to 2 levels lower than they deserved.