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Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Codes of Good Practice on Broad-Based Black Economic Empowerment

Amended Property Sector Code

Statement 000: General Principles and General Scorecard as applied to the Amended Property Sector Code

3. Application of the Codes

 

3.1 All measured entities that are scoped under this sector code (under statement 6.2) must be measured under this sector code.

 

3.2 The basis for measuring the B-BBEE compliance of an entity in terms of paragraph is:
3.2.1 Using the eligibility of Exempted Micro-Enterprise;
3.2.2 The Generic Scorecard and QSE Scorecard, in the case of other Measured Entities.
3.2.3 A measured entity in a  sector in respect of  which a sector code has been issued in terms of Section 9(1) of the B-BBEE Act as amended, may only be measured for compliance in accordance with this code.

 

3.3 PRIORITY ELEMENTS, SUBMINIMUM AND DISCOUNTING PRINCIPLE

 

3.3.1 The Priority Elements are as follows:
3.3.2 Ownership:

The sub-minimum requirement for Ownership is 40% of the Net Value points based on the property owning company time based graduation factor.

3.3.3 Skills Development:

The sub-minimum requirement for Skills Development is 40% of the total weighting points for Skills Development excluding bonus points.

3.3.4 Enterprise and Supplier Development:

The sub-minimum requirement for Enterprise and Supplier Development is 40% for each of the three weighting points excluding bonus points, within the Enterprise and Supplier Development element, namely Preferential Procurement; Supplier Development And Enterprise Development.

 

3.4 COMPLIANCE TO PRIORITY ELEMENTS

 

3.4.1 A Large Enterprise is required to comply with all the Priority Elements;
3.4.2 A Qualifying Small Enterprise is required to comply with Ownership as a compulsory element, and either Skills Development or Enterprise and Supplier Development.

 

Applicable

area

Sub-

Minimum

Requirement

Generic

QSE

Property

Owning

companies

All other

companies

Ownership

Net Equity

40%

3.2

4

4

Skills

Development

Total

Weighting

40%

7.6

6.8

Enterprise &

Supplier

Development

Preferential

Procurement

40%

9.6

10

Supplier

Development

40%

2

2

Enterprise

Development

40%

2

2

 

3.5 DISCOUNTING PRINCIPLE EFFECT

 

3.5.1 Non-compliance with the 40% sub-minimum requirements of any of the applicable priority elements, will result in the following outcomes for both Large Enterprises and Qualifying Small Enterprises:
3.5.1.1 The discounted level that the Measured Entity achieved because of non-compliance with the 40% sub-minimum requirements will be recognised by the Verification Professional ("the Recognition Level");
3.5.2 Notwithstanding the recognition in the point above, the Measured Entity's B-BBEE status level will be discounted by one level down;
3.5.3 The requirement to submit data to the Department of Labour under the Employment Equity Act 55 of 1998 as amended from time to time is only applicable to 'designated employers' who employ 50 or more employees or are above the threshold as gazetted in the Amendments to the Employment Equity Act.

 

3.6 BONUS POINTS
3.6.1 Bonus points are calculated on pro-rata basis and unless otherwise stated.