BEE Blog (Technical)

The Amended B-BBEE Codes of Good Practice present with many new complexities that we attempt to face head-on in this technical blog.

In most cases, we have sought clarity on the matters raised directly with the BEE Commissioner & present their responses here. We would appreciate your questions & input as the process of sharing and discussing B-BBEE related content helps to promote standard practice in the Industry. 

Question: Do the Amended Codes make provision for the use of Management Accounts? Opinion: The Codes themselves do not refer specifically to the use of Management Accounts, however the “Draft” Verification Manual states under the Definitions: 1.1.15. …” In the case where audited financial statements are not available for the Measurement Period, management accounts for the same period will be used.” This suggests that only the company’s registered financial period may be used for the BEE audit & only if signed off AFS are not available, then Management Accounts can be utilised. In the interim, while we are waiting for ...
Read More
Question: If a Measured Entity has (for example) both February 2015 & February 2016 Annual Financial Statements available, however they have not been rated previously on their February 2015 year-end, would they be compelled to utilise their latest (Feb 2016) year-end financials for the audit, or could they elect to be rated on the February 2015 AFS (if these are not older than 18 months post the year-end date)? Response from the BEE Commissioner: Based on the query below the measured entity can elect to use both the Feb 2015 and Feb 2016 financial statements provided they are not older ...
Read More
Question: Can black employees of the Measured Entity qualify as beneficiaries of Socio-Economic Development Contributions if the contributions are in line with Annexe 500(A) and if the benefits do not form part of the employee’s conditions of employment / contract? i.e. If the contributions are a form of support for employees (for example subsidised rental / housing costs, provision of building materials & labour towards building a house, provision of healthcare facilities / medical costs especially related to HIV/AIDS treatment). BEE Commissioner's Response: SED consists of monetary or non-monetary contributions, with the specific objective of promoting access to the economy ...
Read More
Question: Would the following contributions qualify as valid Socio-Economic Development claims?
  1. Donations to the SPCA – where the Measured Entity provides confirmation (either in the form of an LOA or Affidavit) that the donation benefits Black people;
  2. Donations to organizations that support the welfare of animals - where the ME provides confirmation (either in the form of an LOA or Affidavit) that the donation benefits Black people in rural communities and that the economic benefit is that the end beneficiaries are able to save the money that would have been spent on feeding and/or immunizing these ...
    Read More