A client called yesterday. He is a land surveyor with a turnover of less than R5 million. That makes him an EME? No, not so fast. He, as a land surveyor falls within the construction sector.
The construction sector codes define a land surveyor as a BEP (built environment professional) and the EME threshold is R1.5 million.
The land surveyor’s annual income is more than R1.5, but less than R5 million. He therefore has to fill in a scorecard based on the BEP section of the construction charter.
At the same time there are no verification agencies to verify the construction scorecard. He really is in a difficult situation because as from the 1st August, only verified scorecards are valid.
What should he do? Consider himself an EME based on the codes of good practice? No one, least of all his customers will question it. It is wrong to use the wrong codes though, so we cannot rcommend that. He is “stuck between a rock and a hard place”
Accreditation, BEE Compliance, BEE Compliantm scorecard, BEE Scorecard Rating, EconoBEE.co.za, EME, R5 million turnover, Verification
I’ve just seen a generic scorecard, verified by an accredited agency that shows:
Ownership: 20.54 points (35.4% black ownership)
Management: 0.30
Employment equity: 1.83
Skills Development: 1.19
Procurement: 3.79
Enterprise Development: 7.22
Socio Economic Development: 0.00
They are a level 8.
There can be many interpretations but this looks very suspect.
35% black ownership and almost zero management!
They earned 20.54 points so by definition the black partner (or ownership scheme) has earned full net value their shares . Why would someone invest and pay some proportion for their shares and not ask for more than one non-executive seat on the board? Why would they not make some effort to get the board to transform? Why would they not make an effort to improve employment equity.
It is possible that the company is not fronting, and has made an effort to involve staff, but even then level 8 for a 35% black owned company is not very good.
BEE Compliantm scorecard, BEE Scorecard Rating, BEE Sense, codes of good practice, True Empowerment
Many companies in South Africa are working towards getting BEE scorecards in place. They have realised that having a scorecard in place is one easy way of winning business over competitors. As a result, even more companies are enquiring about the scorecard after realising they are lagging behind as each day passes. Time has now passed for cheap bickering and complaining about BEE.
Since many companies now have a scorecard in place what determines who wins business over who is no-more just a scorecard. Rather it is a scorecard with good points. This is for the simple reason that customers will always prefer a scorecard with the highest number of points where they are faced with more than one company with scorecards. In response, cleverer companies have realized the importance of going through a consultation process with a recognized BEE consultancy before they think of the verification process. By so doing these clever companies have put themselves way ahead of their competitors. Going through consultation and working on your own scorecard before verification results in the most desirable scorecard for any company.
Accreditation, BEE Compliantm scorecard, BEE points, BEE Scorecard Rating
We have always said that our clients are more BEE compliant they realise. I consulted for a client yesterday. They are generic and hoped to be at level 5. In the end, we discovered that they had undertaken a lot more activities that earned them points. In many cases people say that they undertook a project because it made sense to do so, not for points. That doesn’t matter – your reason for doing something does not disqualify you from earning points for that project. At the end of my consulting I said to the financial director. “If I can get you to 80 points – level 3, will you take me to McDonalds and buy me a burger?? He smiled and nodded his head “.. in Mauritius.” I continued.
bee, BEE Compliantm scorecard, Business Sense
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