Early in 2013 Mr. LJ van Heerden obtained accreditation as a B-BBEE verification auditor and can perform B-BBEE verifications on all three entity levels. The following can be mentioned for information purposes regarding the B-BBEE Act. There are three entity types for B-BBEE purposes:
- Exempt Micro Enterprise – Turnover less than R 5 million. No B-BBEE score card is required, only a certificate verifying the turnover to be below R 5 million. These enterprises will automatically qualify as a Level 4 B-BBEE enterprise (100% B-BBEE compliant) and even a Level 3 if black ownership is more than 50%.
- Qualifying Small Enterprise – Turnover from R 5 million to R 35 million. In this case a score card is required complying with four of the elements chosen from the seven elements listed in the B-BBEE Act.
- Generic Enterprise – Turnover more than R 35 million. In this case a score card is required complying with all seven of the elements listed in the B-BBEE Act.
The seven elements of the B-BBEE Act are:
- Ownership – B-BBEE target: 25% + 1 vote
- Management Control – B-BBEE target: 50.1%
- Employment Equity – B-BBEE target: Total employees 70% and management 60%
- Skills Development – B-BBEE target: 2% of leviable amount to be spent on learning programs/training for black employees (leviable amount = total annual employee costs declared to SARS)
- Preferential Procurement – B-BBEE target: 50% of money spent on all suppliers
- Enterprise Development – B-BBEE target: total spent to be 2% of net profit after tax
- Socio-economic Development – B-BBEE target: contributions to be 1% of net profit after tax
For any further information, consultations or verifications, Louis van Heerden can be contacted during office hours.