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					Publisher’s NOTE
We would like to congratulate the team behind the            ples behind the process. This will include statistics
first issue of the Emex BEE Management Handbook. I           that have never been published in South Africa before,
would also like to thank our advertisers without whom        scorecard verification, BEE database management
this publication would not have been made possible.          and many other exciting topics.
Congratulations to all of you for seeing the value that
we can all bring to South Africa and the people of our       We look forward to bringing you, the reader, the 2nd
country.                                                     edition of this powerful handbook at the end of March
                                                             2007, which will be a 64 pager and will include the new
This is the first in a series of publications that will be   codes of good practice as outlined by Government,
produced to inform and educate the SMME and cor-             provided they are released yet.
porate markets on BEE and the processes behind be-
coming a BEE compliant company.                              I welcome your comments       and suggestions and look
                                                             forward to feedback from      the readers and advertis-
If we as business owners just step back for a minute         ers that have received the    1st copy of the handbook.
and look at the changes that have taken place in our         Please feel free to contact   me at samedia@telkomsa.
country over the last number of years, we would have         net.
to admit to ourselves that we have a lot to be proud of.
So many positive changes have taken place and so             Jeff Malan
many lives have changed for the better. We are pro-          Publisher
gressing rapidly in so many sectors and our wonderful        Strategic Alliance Media.
nation is reaping the benefits of change.


We as a business community have no excuses not to
be BEE compliant or to have at least taken the first
steps to working with Government in bringing our com-
panies into the BEE fold, however many business own-
ers may not have seen the opportunities that exist for
all of us by working together in creating a better coun-
try and economy.


To be a BEE compliant company is to see the oppor-
tunities for what they are and this handbook may help
you with that.

The reason we believe that this handbook will be so
successful is because it has been produced with the
correct intentions in place: that is to help our fellow
business owners and entrepreneurs in finding the best
possible way of becoming BEE compliant and under-
standing what the benefits are of doing so. In this is-
sue we will explain BEE and some of the key princi-
         Contents
         Why “this” BEE Handbook amongst “other” handbooks?..................................................................2

         What is a BEE scorecard?.............................................................................................................3

         BEE Scorecard Optimisation..........................................................................................................5

         How to maximise your BEE scorecard ...........................................................................................7

         BEE statistics...............................................................................................................................9

         Verficiation agency requirements ................................................................................................12

         The Emex Experience ................................................................................................................15

         The Emex verification Process expanded ....................................................................................17

         Management of suppliers               .........................................................................................................18




advert
         BEE Training..............................................................................................................................20

         National Empowerment Trust......................................................................................................22

         BEE Insurance...........................................................................................................................23

         Useful Links...............................................................................................................................24




         Credits
         Publishers:                           Strategic Alliance Media
         Address:                              46 Plantation Rd, Edenvale
         Tel:                                  (011)524-0070/1
         Fax:                                  086 686 8226
         Email:                                samedia@telkomsa.net

         CEO and Publisher:                    Jeff Malan
         Managing Director:                    Bheki Masilela
         Assistant Publisher:                  Debbie Bishop-Williams
         General Manager:                      Darren Jacobsen
         Sales:                                Strategic Alliance Media
         Layout and Design:                    Woema Graphic & Web Design
         Editorial:                            Emex


         Disclaimer: All material is strictly copyright and all rights are reserved. No portion of this Handbook may be reproduced in any form without writ-
         ten consent from the publishers. The information contained herein is compiled from a wide variety of primary form without written consent from the
         publishers. The information contained herein is compiled from a wide variety of primary sources. Whilst every care has been taken in compiling this
         Handbook, the publishers do not give warranty as to the completeness or accuracy of its contents. The views expressed in the Handbook are not
         necessarily those of the publishers, or its associates.
                                                                                                  Page 02



WHY “this” BEE handbook
amongst “other” handbooks?
When the BEE wave entered the market shore            Emex sets an example with its scoring and sup-
in the 90’s, the overflow engulfed both loose         plier database management systems, where
sea sand and rocks eternal. Some have read            technology takes care of tasks normally allocated
the prophecy and others only read it now but          to entire human resource departments. Detailed
for those who read this handbook, knowledge is        reports on all levels of supplier management
power, money, security and opportunity.               are given with added customer requirements in
                                                      each report. This is where financial principles,
The empowerment question encompasses the              technology and the calculations on all interfaces
entire SA Economy. Business in South Africa is        meet to manage all aspects simultaneously.
in desperate need of a BEE STANDARD. Trading
security currently lies in system standards which     The national need is met by standardization of
are vital for both scoring credibility and the fu-    methods and systems through Emex agencies
ture of your business.                                nationwide. No matter where you are, we will be
                                                      able to assist you in the BEE process on all lev-
This publication is called to life by Emex Trust to   els.
set a tested standard of knowledge in the BEE
market for verification procedures and BEE sup-       This handbook is intended as a quick reference
plier management. The Department of Trade and         to most aspects of BEE.
Industry and South African National Accreditation
System (SANAS) have set the stage for compli-
ance and this handbook complements these cur-
rent guidelines.

It is important to keep track of all the changes in
the market to ensure that your service provider is
compliant with BEE guidelines. When you have
been served by BEE industry service providers,
you should have the power to know whether or
not you are served in a manner equal to BEE
market place standards. When you have used
this handbook, you will have the peace of mind
to make an informed decision.

The BEE industry is dynamic in nature and you
may use up-to-the-minute knowledge and tech-
nology to make use of the advantages that are
brought about by Empowerment. Systems and
solutions discussed in this handbook will posi-
tion your company and keep you at the heart-
throb of economic power.
Page 03                                                                                                                                                                                                                                                      Page 04




                                 WHAT is a BEE Scorecard?                                                                     Advantages of an Exemption Certificate:             The goal: BEE scorecards from a business
                                                                                                                              Your BEE Procurement Level is deemed to be          perspective provide you with a measured com-
   A BEE scorecard is a measuring instrument used           tions are done by Emex to allow the choice of both
                                                                                                                              100% with an assumed BEE Status of Level            petitive advantage over non- compliant busi-
   by the Department of Trade and Industry to imple-        options.
                                                                                                                              4. All businesses need to spend 5% of their         nesses.
   ment and track Black Economic Empowerment in             Generic Scorecard
                                                                                                                              procurement on Exempted Micro Enterprises
   South Africa. It measures the contribution made by       Generic Scorecards are divided into 7 catego-
                                                                                                                              to get the final point on their preferential pro-   BEE Status                  Qualification
   business owners to the BEE initiative and histori-       ries, covering all categories of BEE contribution.
                                                                                                                              curement section which means that it is very        Level One Contributor       >100 points on the Generic Scorecard
   cally disadvantaged individuals (HDI’s) on seven         The Codes of Good Practice regulate all the detail
                                                                                                                              important for any small business to inform their    Level Two Contributor       >85 but <100 points on the Generic Scorecard
   different levels.                                        in the generic scorecard and assists the Dept of
                                                                                                                              customers of their BEE status.                      Level Three Contributor     >75 but <85 points on the Generic Scorecard
                                                            Trade and Industry (DTI) with BEE reporting. The
                                                                                                                                                                                  Level Four Contributor      >65 but <75 points on the Generic Scorecard
   When a business submits tenders i.e. to govern-          generic scorecard consists of the following ele-
                                                                                                                              Amendments to BEE statuses                          Level Five Contributor      >55 but <65 points on the Generic Scorecard
   ment to be subcontracted on a certain project, that      ments:
                                                                                                                              The scorecard is valid for a year, thus your        Level Six Contributor       >45 but <55 points on the Generic Scorecard
   business is often measured in terms of its produc-
                                                             Element                    Weighting   Primary Codes Reference   status will remain as exempt for the duration       Level Seven Contributor     >40 but <45 points on the Generic Scorecard
   tion capability, price and BEE score. Part of the
                                                             Ownership                  20 points   Code 100                  of one year. Should clients prefer receiving an     Level Eight Contributor     >30 but <40 points on the Generic Scorecard
   score is made up of the BEE status of suppliers.
                                                             Management control         10 points   Code 200                  adapted interim status, Emex offers to verify the   Non Compliant Contributor   <30 points on the Generic Scorecard

                                                                                                                              status prior to the annual renewal. When Micro
   Different categories of scorecards are applied to         Employment equity          10 points   Code 300
                                                                                                                              Enterprises grow to the next category, they are
   the business sector in terms of the kind of indus-        Skills development         20 points   Code 400
                                                                                                                              obliged to subscribe to either the QSE- or ge-
   tries on the one hand and in terms of size on the         Preferential procurement   20 points   Code 500
                                                                                                                              neric scorecard.
   other:                                                    Enterprise development     10 points   Code 600

                                                             Residual                   10 points   Code 700
   •      Certain industries have their own charter,
          like mining, petroleum, financial services etc,   Qualifying Small Enterprise (QSE) Scorecard
          but most, in absence of an industry specific      The QSE scorecard relieves the BEE burden on
          scorecard / charter, fall under the generic       smaller businesses. It consists of the following el-
          BEE scorecard as determined by the Codes          ements where the 5 most relevant elements are to
          of Good Practice; and                             be chosen:
   •      In terms of size, one of three assessment cat-
          egories is indicated:                             Element                     Weighting   Primary Codes Reference

   •      A generic scorecard                               Ownership                   20 points   Code 1100

   •      A qualifying small enterprise scorecard           Management control          20 points   Code 1200

   •      An exemption certificate                          Employment equity           20 points   Code 1300

                                                            Skills development          20 points   Code 1400

   It needs to be said that contractors may require         Preferential procurement    20 points   Code 1500

   different levels of contribution from suppliers and      Enterprise development      20 points   Code 1600

   that, although the BEE standards are set, the mar-       Residual                    20 points   Code 1700
   ket often requires higher performance and contri-
   butions.                                                 Exempted Micro Enterprise Scorecard
                                                            The Exempted Micro Enterprise Scorecard is giv-
   A short summary on the different types of                en to businesses that can prove that they have an
   Scorecards                                               annual turnover of less than the VAT registration
                                                            limit as per the Value Added Tax Act of 1991 (R300
   Narrow Based Scorecard                                   000); and less than 5 fulltime employees. A let-
   A Narrow Based Scorecard measures the owner-             ter from the business’s accountant is accepted as
   ship and management of a business. The require-          proof thereof in order to issue a certificate of ex-
   ments of Narrow Based Scorecards may prove to            emption.
   be higher than a particular Generic Scorecard and
   that is why both narrow and broad based calcula-
Page 05




   BEE Scorecard Optimisation
   Before entering into any more detail regarding the escalation       which is extremely helpful when advice can be given on actual
   of BEE scorecard outcomes, it needs to be stated that it has        targets and projections. Reports of this kind save you time and
   been stressed by the DTI and SANAS that the field of scoring        allow cost effective decisions to be made at a glance. The op-
   and optimisation are never to overlap. The reason for this con-     timization report will indicate where the maximum score has
   cern is obvious, as prejudicial bias is expected to take place      been achieved eliminating further costly changes in that area.
   when persons involved in both these fields of expertise assist      Conversely, optimisation variables are similarly highlighted
   a particular client.                                                where the score can be improved upon.

   For the reason of transparent impartiality, Formality Trust         Direct Empowerment describes the control and ownership
   has been offered the opportunity to address the reader on           of the company and directs owners of companies seeking
   this topic and hence the substance of this sub-editorial will be    partners and shareholders for the BEE equity target purpose.
   dedicated to the principles put forward by Formality Trust who      Owners of businesses often make use of legal structures of
   offer services in the field of legal structuring and estate plan-   which trust companies prove to have the most advantage. A
   ning, with taxation and BEE optimisation alike.                     sound business principle is never to take politics into account
                                                                       when you make decisions, but to always take into account
   When the optimisation of a BEE scorecard is contemplated,           sound business principles (something you would have done
   there are certain fixed elements to be optimised and these are      even if you did not live in South Africa).
   obviously the seven elements of BEE scorecards. The BEE
   Codes of Good Practice are the benchmark of all optimisation        When Human Resources are taken into account, it may entail
   as these contain the exact margins to be met in the BEE arena       the ethnicity of the people that are appointed and the amount
   in order to obtain a needed score by a certain business.            of money spent on skills development. We found that more
                                                                       than often owners believe that they are to retrench people and
   A short discussion on optimisation will follow for each one of      pay for services, but once the owners’ needs have been iden-
   the Code divisions in the Code of Good Practice. Note that          tified, it becomes clear that BEE legislation and regulations
   Qualifying Small Enterprises have the privilege of electing         allow many advantageous actions to be taken. These actions
   five of the seven categories: Management and Control; Equity        include ESOPS (Employee Share Option Schemes), training
   Ownership; Employment Equity; Skills Development; Procure-          time inclusions, employment equity plans, skills compliance
   ment; Enterprise Development and Residual (Social Develop-          documents that offer contribution and bonus points.
   ment).
                                                                       Indirect empowerment refers to three areas, namely: a)
   “Where do we start with BEE?” is often one of the first ques-       where you buy your stock/services from, b) where expenditure
   tions asked to a BEE advisor. Many business owners and man-         takes place for enterprise development and c) who you donate
   agement mistakenly believe that they have to first implement        money to for social responsibility. Regarding the latter two
   BEE initiatives before getting a verified Scorecard. Our ex-        references, many possibilities arrive, such as the insurance
   perience is that it is easier to comment on the optimisation of     industry and funds like National Empowerment Trust (NET).
   a scorecard once you know what your parameters are. These           Considering your scorecards, many people have urged suppli-
   parameters are only available once a credible scorecard is is-      ers to obtain BEE scorecards so that they could keep on pur-
   sued. BEE consultants prefer to have first a scorecard avail-       chasing from them, while others have simply switched to more
   able before advising on optimisation.                               lucrative procurement in terms of their scorecards (millions of
                                                                       contracts have been cancelled for this reason alone).
   Scorecards show current “as is” compliance information and
   not specific steps on how to improve your score. As an ex-          PS: Your entire estate is influenced by a single change in
   ample, the Emex optimisation tool was developed to assist               your business structure and all influenced aspects
   business and HR managers with the process of successfully               should be revisited after BEE scorecard optimisation.
   identifying key improvement areas, with the least disruption            Aspects include final will and testaments, trust struc-
   to the business model and the least amount of money to                  tures, company documents, corporate insurance,
   be spent.                                                               statutory compliance, labour relations, taxation in all
                                                                           forms etc. Redress these aspects as part of optimisa-
   Emex computes a BEE sensitivity analysis on the subdivi-                tion. Should you need any assistance in these areas,
   sions of the seven main scorecard elements and variables,               please call on www.formality.co.za
Page 07




          How to Maximise your BEE Scorecard
   Emex has a reporting system that is automatically gener-              towards skills / training that are to be counted as
   ated when your score is calculated by the Emex Manage-                contributions on the BEE scorecard;
   ment System. Although Emex is not in any way involved in
   optimisation or advice on BEE scorecards as prohibited by       6.    Developing extended skills like sending your work-
   SANAS code R 47 – 01, calculations are done on the po-                ers on SETA-accredited learning programmes
   tential deficit between where you are and where you would             (training) with restitution of up to 70% of expenses;
   like to be in terms of the ideal situation of meeting all the
   targets in the BEE Codes of Good Practice.                      7.    Development of Employment Equity plans and re-
                                                                         ports to the Department of Labour, which entail that
   When the process has been completed, an automatic re-                 you both meet the material and procedural criteria
   port is generated in the Emex System that allows you to               when entering reports to the Department of Labour
   decide on what you would like to do in terms of the BEE               and employment of black managers and skilled
   contribution gap of where you are and where you would                 technical or junior managers (supervisor, fore-
   like to be.                                                           men, superintendent, etc.).

   Stemming from the variation report you are free to choose       8.    Compliance with all relevant employment related
   your optimisation company, who will be enabled by the re-             legislation which will allow you to obtain the re-
   port to give you more accurate advice on the choice of                served points in this section with the prerequisite
   scorecard optimisation.                                               that you have proof of what is to be submitted, as
                                                                         legislation requires;
   The advisors you employ to assist you in the optimisation
   can make many suggestions and costs vary according to           9.    Implement human resource management plans in
   your instruction. Keep in mind that optimisation, depend-             accordance with compliance legislation in general,
   ing on what part of the scorecard you are attempting to               implementing adult basic education and associ-
   change can cost you an arm and a leg especially when                  ated training for your workers and introduction of
   you employ the wrong people or work on the wrong part                 non-discrimination policies in the workplace;
   of the scorecard. The information on this page is not to be
   deemed advice but a few ways often suggested by advi-           10.   Purchasing from businesses that have credible,
   sors to improve the score on your BEE Scorecard:                      independently verified, BEE Scorecards and pur-
                                                                         chasing from businesses that have been verified
   1.     Direct empowerment joint ventures and sale of                  and found to have been qualified small enterpris-
          shares to black partners and / or Empowerment                  es and exempted micro enterprises;
          groups;
                                                                   11.   Assistance to potential entrepreneurs with the nec-
   2.     Structuring and beneficiation of employees through             essary capital or physical means (stock, machinery,
          Employee Trusts, often referred to as ESOPS (Em-               etc.) to start and own a small business;
          ployee Share Option Schemes);
                                                                   12.   Donations to organisations that fall within the am-
   3.     Employing black people with specific reference to              bit of social development expenditure like The Man-
          black woman in managerial and executive posi-                  dela Children’s Fund or the National Empowerment
          tions and training of black employees and more so              Trust (www.netrust.co.za) amongst many others as
          black employees with disabilities;                             well as extension of loans to black employees with
                                                                         financial assistance in mind.
   4.     Changing a source of supply to one that is more ad-
          vantageous to your BEE procurement need (it often        The Emex variation reporting tool was developed to assist
          happens that scorecard holders advise their suppli-      business and HR managers to identify key improvement
          ers to obtain scorecards which may in turn cause         areas with the least amount of money to be spent. Op-
          the holder of the scorecard not to move to another       timised scorecards signal pro-active BEE implementation
          supplier);                                               strategies rather than the knee-jerk or money-down-the-
                                                                   tubes approach.
   5.     Appointment of skills development facilitators
          which will in turn allow businesses not only to re-      For more information on obtaining credible BEE score-
          claim a percentage of the amount spent on SETA           cards, which will include a mathematical deficiency report,
          levies, but to obtain a government grant and, most       i.e. variation report, contact Emex today on 012 323 5566
          important of all, in this context, to allocate funds     or visit our website at www.emex.co.za!
Page 09                                                                                                                                                                                                                                                                                                                              Page 10


                                                                                                                                                      The value of an expired scorecard is the same as not having                                              Compliance levels of verified companies


   BEE Statistics
                                                                                                                                                      a scorecard. The company with an expired scorecard runs the                                            Contributor Level   Level                              Percentage
                                                                                                                                                      risk of clients not using them as a supplier because the client’s                                             1            >= 100%                                    1.51%
                                                                                                                                                      scorecard will also be negatively affected. A BEE sensitive client                                            2            >= 85% but < 100%                          4.81%
                                                                                                                                                      of such a company may chose to spend the money elsewhere.                                                     3            >= 75% but < 85%                           8.73%
                                                                                                                                                      At least 3.6% of all clients are already BEE sensitive in their pur-                                          4            >= 65% but < 75%                          15.41%
   Overview                                                             ient reason for only having an internal scorecard. Although the                                                                                                                             5            >= 55% but < 65%                          15.41%
                                                                                                                                                      chasing decisions and should not be ignored.
   The government’s BEE initiatives are changing the marketplace        BEE scorecard is a verified report on BEE implementation in the                                                                                                                             6            >= 45% but < 55%                          15.67%
                                                                                                                                                                                                                                                                    7            >= 40% but < 45%                           7.39%
   progressively. That which started as a political drive is making     company, there is uncertainty around the goalposts, a deterrent               The advantage of having a BEE scorecard that is up to date and                                                8            >= 30% but < 40%                          13.80%
   a difference in the economy. The effects are noted as BEE Sta-       for companies to make use of a verification agency’s services.                properly used is that it keeps the company inside the walls of the                                      Non compliant      <30%                                      17.28%
   tistics.                                                                                                                                           new economic village.
                                                                        Companies that use reputable verification agencies are realising                                                                                                                                              Compliance Levels


   The BEE Scorecard mechanism to report on the progress of BEE         that the BEE initiative should be seen as the gateway to the new              Average BEE score trend with resulting increase in BEE                                       20%



   implementation is starting to build momentum.                        economy. Once the management understands the implications                     compliance                                                                                   18%


                                                                                                                                                                                   Average Percentage BEE
                                                                        of the BEE Act and Codes, it becomes a new opportunity. It can
                                                                                                                                                                                                                                                   16%

                                                                                                                                                                                         Compliant                                                 14%
   The main driving factor for the success of BEE Scorecards is         even be a source of a new competitive advantage.
                                                                                                                                                                              Year   Average BEE Score                                             12%
   the procurement policy. Every company with an independently
                                                                                                                                                                              2003                     33.60%                                      10%

   verified scorecard would have contacted its suppliers for their      Once the rules are understood it can be implemented properly                                          2004                     39.41%                                      8%

   scorecard.   The company receives more points for purchasing         without the danger of wasting time and resources on the wrong                                         2005                     48.77%                                      6%

   larger sums from companies with higher scores on their score-        implementation of BEE goals. The verification agency has an                                           2006                     51.14%                                      4%

   cards. The preferential procurement leads to the spiralling of       enormous task of educating clients to realize the benefits of the                                                                                                          2%
                                                                                                                                                                        Average BEE score trend with resulting increase in BEE compliance
   BEE implementation.                                                  BEE Scorecard.                                                                                                                                                             0%
                                                                                                                                                             60.00                                                                                       1      2        3       4               5              6      7         8       Non
                                                                                                                                                                                                                                                                                        Level of Contribution


   Companies with valid scorecards                                      Companies with exempted certificate                                                  50.00
                                                                                                                                                                                                                                                   Bearing in mind that Level 1 is the hardest one to achieve, it is
   One of the first indicators that we use is the number of companies   A surprising indicator is the number of companies with exemption
                                                                                                                                                                                                                                                   quite understandable why so few companies have been able to
   with valid, independently verified, scorecards. The sample size      certificates. Only 1.6% of all the companies with BEE scorecard                      40.00
                                                                                                                                                                                                                                                   achieve the ultimate goal. Under ideal circumstances a normal
   for the indicator is 66 370 companies from the EMEX supplier         have exempted status. An exempted company is currently de-
                                                                                                                                                                                                                                                   distribution may be expected, with a single mode at Level 5. The
   database.                                                            fined as a company with less than 5 employees and a turnover of      % BEE Compliant 30.00

                                                                                                                                                                                                                                                   current second mode occurring at the easiest and “non – compli-
                                                                        less than R 300 000 per annum. The larger portion of companies
                                                                                                                                                             20.00                                                                                 ant” side of the graph reflects the number of entrants in a milieu
   3.62% of the companies listed, have scorecards. At first glance      in the economy fall into the exempted category, but the uptake of
                                                                                                                                                                                                                                                   where most companies are still to be verified. The relatively low
   the figure seems low, but when you consider the size of the im-      the exempted scorecard is fairly low.                                                10.00
                                                                                                                                                                                                                                                   number of companies on Level 7 may be taken as a very promis-
   pact, you realize that a substantial number of companies bought
                                                                                                                                                                                                                                                   ing trend where companies have profited from advice and have
   into the BEE Scorecard initiative. The companies that are cur-       Large corporations need to spend 5% of the 70% of their pro-                          0.00
                                                                                                                                                                 2003                          2004                            2005         2006   progressed to any of the higher levels beyond Level 7.
   rently verified are using the opportunity to benefit from this new   curement to be spent at exempted companies to be able to get
   aspect of the market.                                                their last point of the 20 available points for procurement. This             The Average BEE Score awarded by all Verification Agencies is
                                                                                                                                                                                                                                                   Number of scorecards Issued per quarter
                                                                        incentive from the Enterprises has not reached the smaller busi-              rising as per the table per year, since 2003. The rising trend
   Some are calling the verified companies part of the new econo-       nessmen.                                                                      shows that, on average, the BEE initiatives put in place, by the                                       Number of scorecards Issued per quarter
   my. A company can only do business with these companies once                                                                                       companies measured, result in improved BEE compliance.                                                 Quarter                 Number of scorecards issued
   a BEE scorecard is supplied. The purchasing decisions need to        There is a major misconception as to the value of exempted cer-                                                                                                                      Jan - Mar 2006                                41.3%
                                                                                                                                                      The slowing down in the annual rate of increase in the average                                         Apr - Jun 2006                                31.3%
   take into account the suppliers score to maximize the purchasing     tificates and we should see a gradual increase.
                                                                                                                                                                                                                                                             Jul - Sep 2006                                27.4%
   company’s own score.                                                                                                                               BEE score may be attributed to the lower scores of companies
                                                                        Companies with expired certificates                                           being measured for the first time. The persistent upward trend
                                                                                                                                                                                                                                                   The indicator of the number of scorecards issued per quarter
   Internal scorecards                                                  11.0% of submitted scorecards have expired and have not been                  may be due to the successful implementation of the advice given
                                                                                                                                                                                                                                                   shows the short- term changes in the BEE scorecards issued in
   The next indicator is reporting the number of internal scorecards    re-verified. The companies not wishing to re-verify their BEE                 to the already measured companies, resulting in higher BEE
                                                                                                                                                                                                                                                   the market for the year. The comparison is based on the received
   that are submitted instead of independently verified scorecards.     status do so for various reasons. Some use the delay in legisla-              scores.
                                                                                                                                                                                                                                                   scorecards from clients, since no central exchange of scorecards
   58% of the companies contacted believe that an internal score-       tion as an excuse and others have been hurt from exorbitant fees
                                                                                                                                                                                                                                                   is currently available from the Department of Trade and Industry.
   card is adequate. This research excludes all the internal score-     of previous verification agencies. The expiry rate is considerably            Compliance levels of verified companies
   cards due to the non-verified status of the information supplied.    lower at verification agencies like EMEX that has a monthly pay-              According to the current data on all the companies assessed,
                                                                                                                                                                                                                                                   One factor for the slowdown in the 3rd quarter is the DTI’s delay
                                                                        ment option scheme to include all the updates to scorecards as                countrywide, by all the Verification Agencies, the following bi-
                                                                                                                                                                                                                                                   of the release of the 3rd Phase of the Codes of Good Practice.
   Although it is a promising sign of compliance, it is hampered by     they happen.    Changes to a scorecard should be a fairly inex-               modal distribution of companies, per BEE level achieved, was
                                                                                                                                                                                                                                                   Many companies await the finalization of the codes before mak-
   gazetting of the third phase of the Codes of Good Practice. The      pensive exercise until the next full annual verification is due.              generated:
   delay in publishing the Codes of Good Practice leaves a conven-
Page 11                                                                                                                                                                                                                                                                           Page 12




                                                                                                                                                            VERIFICATION Agency Requirements
   ing major changes to their businesses. This factor may be re-                          Conclusion
   sponsible for an increase in scorecards during the last quarter                        BEE in South Africa has commenced and is growing in volume
   when the DTI promise to have the codes released, realizes.                             and in substance. The growing economic pressure from client to
                                                                                          supplier for a BEE scorecard is increasing the commitment to a
                       Overall number of scorecards issued per quarter
                                                                                          sustainable BEE initiative.
   45.0%
                                                                                                                                                            A few criteria that your verification agent should sat-         African National Accreditation System) of the Depart-
                                                                                                                                                            isfy:                                                           ment of Trade and Industry (DTI) accredits BEE agen-
                                                                                          Assisting management in companies is a crucial factor in mak-
   40.0%


                                                                                                                                                                                                                            cies (SANAS R47 document refers). These requirements
   35.0%
                                                                                          ing the correct BEE decisions. Verification agencies and BEE
                                                                                                                                                            1.   Trained and tested verifiers at the required College       have already been met by EMEX Trust. The R47 docu-
   30.0%
                                                                                          consultants play a more prominent role in equipping managers to
   25.0%
                                                                                          make informed decisions.                                               or University level                                        ment requires the following of verification agencies:
   20.0%                                                                                                                                                    2.   Proof of adherence to all legislation and SANAS
                                                                                                                                                                                                                             Standard principles for inspiring confidence by SANAS
   15.0%                                                                                  The new economic village is forming and the only way to get to         R47
   10.0%                                                                                  the market plain is with a BEE scorecard.                         3.   Precision calculations in BEE- and accounting for-         Impartiality              Openness
                                                                                                                                                                                                                            Competence                Confidentiality
    5.0%                                                                                                                                                         mulae                                                      Responsibility            Resolution of Complaints
     0.0%                                                                                                                                                   4.   Advanced online electronic customer support sys-
    Jan - Mar 2006                       Apr - Jun 2006                  Jul - Sep 2006
                                            Quarter
                                                                                                                                                                 tems                                                       According to SANAS, the criteria above are not negoti-
                                                                                                                                                            5.   Customizable electronic supplier management sys-           able and many measuring standards have been added
                                                                                                                                                                 tems                                                       to these principles. Any party found not to adhere to
                                                                                                                                                            6.   Local presence of verification service centres in your     these principles will be disciplined by SANAS and may
                                                                                                                                                                 area                                                       lose their privilege to act as verification agency or agent
                                                                                                                                                            7.   Complete service delivery, including testing of BEE        (http://www.sanas.co.za/bee-pdfs/R%2047-01%20-FI-
                                                                                                                                                                 status of all suppliers from national call centres with-   NAL.pdf ).
                                                                                                                                                                 in 21 days
                                                                                                                                                                                                                            THE STANDARD of SERVICE.
                                                                                                                                                            Entrust your scorecard service and supplier manage-             Ever since the first BEE documentation was released,
                                                                                                                                                            ment to qualified professionals who have the knowledge          there has been confusion in the market as to what exact-
                                                                                                                                                            to assist you, and can support the systems too.                 ly the STANDARD of SERVICE should be for verification
                                                                                                                                                                                                                            agencies to adhere to. Emex Trust believes it sets the
                                                                                                                                                            A BEE Verification Agency should internally display a           benchmark for all others in this regard. The following are
                                                                                                                                                            positive and utmost commitment to all seven indicators          facts regarding the Emex STANDARD:
                                                                                                                                                            of the Broad Based BEE Strategy scorecard as set out
                                                                                                                                                            by the DTI, and shall demonstrate the highest level of          1. All Emex personnel have been trained according to
                                                                                                                                                            contribution towards these key indicators.                         NQF levels 5, 6 and 7 as required and all Emex per-
                                                                                                                                                                                                                               sonnel have been tried, tested on www.examsonline.
                                                                                                                                                            BEE Verification Agencies should be seen as being both             co.za and passed;
                                                                                                                                                            factually and perceptually independent from their verified      2. Emex, according to internal audits,complies with doc-
                                                                                                                                                            entities, and should avoid any circumstances that rise or          ument SANAS R47 in full;
                                                                                                                                                            may potentially give rise to a conflict of interest between     3. Precision math is used to calculate scorecards, with
                                                                                                                                                            the various parties. Should such circumstance arise, the           incorporation of complex accounting formulae;
                                                                                                                                                            full nature thereof must immediately be disclosed to all        4. 24 hour, 7 days a week online customer relationship
                                                                                                                                                            parties involved and prior consent must be given before            system is utilised by all clients, which indicates pro-
                                                                                                                                                            any further evaluation activities are to be undertaken.            file, responsibilities and progress on all levels, in-
                                                                                                                                                                                                                               cluding that of supplier statuses and comments;
                                                                                                                                                            DTI places great emphasis on verification agency com-           5. Supplier management systems are customised to of-
                                                                                                                                                            pliance but the bogus unqualified agencies may still lit-          fer client registration, import and export facilities on
                                                                                                                                                            ter the empowerment landscape until SANAS (South                   all processes and documentation, progress reports
Page 13




       and BEE supplier status comparing from a current           scorecards are no longer political, but rather an informed
       BEE supplier database of 65 000, estimated to be           economic decision based on net profit and standard of
       200 000 by the middle of next year [This is where you      service. Compare your need to the Emex Standard!
       choose your BEE suppliers];
   6. Local Presence and support is often the only factor         Useful links
       taken into account in the choice of service providers.     Growth, Employment and Redistribution Policy (GEAR)
       Emex currently has offices in Pretoria, Johannesburg,      http://www.info.gov.za/documents/index.htm
       Cape Town, Bloemfontein, Durban, Pietermaritzburg,         Reconstruction & Development Program
       Richardsbay, East London, Port Elizabeth, Pieters-         h t t p : / / w w w. p o l i t y. o r g . z a / h t m l / g o v d o c s / r d p / r d p .
       burg, Potchefstroom, Vaal Triangle and Upington with       html?rebookmark=1
       exponential expansion due to service excellence;           Broad Based Black Economic Empowerment Act
       and                                                        http://www.info.gov.za/gazette/acts/2003/a53-03.pdf
   7. Since all administrative matters are completed one          The Codes of Good Practice on BEE
       day after attendance to the client, it is only the test-   http://www.dti.gov.za/bee/codes2005.htm
       ing of the supplier statuses of clients that needs to      Employment Equity Act 55 of 1998
       be tested at a lesser pace, as suppliers don’t reply       http://www.polity.org.za/html/govdocs/legislation/1998/
       immediately.                                               act98-055.html
   Without a STANDARD of SERVICE to measure verifi-               Skills Development Act
   cation by, all common exercises like marketing become          www.info.gov.za/gazette/acts/1998/a97-98.pdf
   hollow, unless you can produce what has been required
   according to the market standard. The motivations for
Page 15                                                                                                                                                                                                                                          Page 16




                 EMEX Experience
                                                                                                                                 •   Press releases are done on behalf of Emex clients          to monitor and improve BEE procurement process-

   The                                                                                                                               as soon as their BEE Scorecards have been final-
                                                                                                                                     ised. Emex sends press releases to your clients on
                                                                                                                                                                                                es. The EMEX Internet system provides an online
                                                                                                                                                                                                database for searching for other Scorecard verified
                                                                                                                                     request and publishes it on www.pressreleases.             companies, enabling quick selection of appropriate
                                                                                                                                     co.za, where subscribers may obtain it as public           suppliers to enhance scorecard status on supplier
   BLACK EMPOWERMENT has lost its color. It is no                   •   EMEX offers clients the opportunity to view their            information. Pressreleases.co.za is a recognized           management. Management tools are customised
   longer a political motivation for business to comply with            opposition’s BEE scorecard levels if either                  Leader in South African press releases, script writ-       to the needs of Emex clients to ensure maximum
   BEE, but an economic decision underwritten by service                verified by EMEX or data captured from supplier              ing and distribution for small and medium-sized            functionality regarding the subject of both BEE and
   excellence. Hence we are all to engage in ECONOMIC                   scorecard requests. This information is vital when           businesses. Benefits that clients enjoy with an ex-        supplier management.
   EMPOWERMENT and Emex becomes the vehicle to                          tendering for State or private contracts. The lower          ecuted press release include increased visibility
   enhanced profit margins. It’s all about a non-political,             your Scorecard Level, the higher your chances of             (branding) and credibility for the rated company,      In most cases Emex Trust is the first and the only serv-
   financial BEE scorecard and supplier management ben-                 being successful with your tender providing you of-          new customers, enhanced investor interest and          ice provider with most of the above qualities and we
   efit and the Emex Experience on your way to wealth                   fer competitive products and services.                       free publicity. This is where you allow your trade     both congratulate and thank you for being part of the
   and stability.                                                   •   The EMEX scorecard verification process is on par            partners to celebrate your BEE achievements!           family. Together we will be able to build a future for our
                                                                        in terms of the Codes of Good Practice. An objec-                                                                   families and businesses alike.
   Companies that choose Emex Trust to verify their                     tive of the codes is to provide further clarity and      •   Every BEE-compliant business requires effective
   BEE Scorecards and manage suppliers, enjoy the                       guidance on the interpretation and definition of             online BEE management tools (www.emex.co.za)
   following benefits:                                                  B-BBEE. Clients enjoy peace of mind knowing that
                                                                        their Scorecard conforms to these Codes of Good
   •      All clients are kept up to date during the verification       Practice.
          process with a weekly task report. The process
          is transparent to both workers and management.            •   Businesses are confronted with a variety of verifi-
          Only qualified and professionally trained verifiers           cation Agencies to choose from. How well they’ll be
          are employed to assess the client’s BEE status.               able to serve your needs will depend on their pro-
                                                                        fessional qualifications and level of training.
   •      Prompt service: 21 days from receiving the sup-               All the Verification Agents employed by EMEX are
          pliers list from a client a verified scorecard will be        suitably qualified with B degrees at Tertiary Institu-
          issued. Where necessary a preliminary scorecard               tions and testing is done on various degrees of dif-
          will be issued, this scorecard will exclude points            ficulty through the www.examsonline.co.za portal.
          relating to procurement.
                                                                    •   EMEX clients have access to an online Supplier
   •      All suppliers are contracted by email, fax and tel-           Management System that will enable them to
          ephone requesting their scorecards, which immedi-             select suitably BEE-verified suppliers enhancing
          ately places Emex in a category of its own.                   their procurement score. Preferential procurement
                                                                        measures the extent to which enterprises procure
   •      EMEX has compiled the largest South African                   from companies that are B-BBEE compliant, which
          BEE supplier database to date, which means that               includes micro enterprises and qualifying small en-
          clients are empowered to make qualified and in-               terprises. A substantial number of the points are
          formed procurement decisions in line with score-              allocated towards procurement from small and mi-
          card optimisation efforts.                                    cro enterprises. Utilising the Supplier Management
                                                                        System will indicate to users their combined small
   •      Verified companies’ scorecard statuses are adver-             and micro enterprise BEE purchase targets when
          tised to other rated businesses wanting to advance            purchasing from other listed suppliers. Full marks
          their own BEE score. This has a positive econom-              can only be awarded when procurement is done
          ic benefit to all verified companies within the Emex          from the small, very small and micro enterprises.
          System.
Page 17                                                                                                                                                                                                                                                                                     Page 18




   The Emex Verification Process expanded                                                                                            Management of Suppliers
   [Take note that these headings are shortened explanations of a very complex system]                                              Prior to the systems developed by Emex, Supplier Management                     fluctuating even as they are captured in the system, which
                                                                                                                                    proved to be one of the most challenging aspects of management                  necessitates the weekly updating of the system with new
   Most people are unaware as to what happens behind the             4.   Updates are made to the EMEX system by ticking re-        for all organisations in both the government and private sector.                scorecard details.
   scenes when they are obtaining a BEE Scorecard. Not                    ceived questionnaire and initial scorecard as done.                                                                                   ·   Clients receive usernames and passwords to the Emex sys-
   only does it take commitment and skill, but it requires a         5.   With the client’s list of suppliers captured, updates     From the top downward, all Government entities are required to                  tem. All clients have 24-hour access to the system from any
   concerted effort from management to provide the neces-                 are made to the EMEX system again by ticking “sup-        provide reports on the BEE status of their suppliers. It needs no               destination in the world with the prerequisite of the internet.
   sary documentary information to the verifier. We have                  pliers list captured”.                                    explanation that the private sector is the main supplier to govern-             BEE status reports on suppliers are readily available.
   compiled a summary of the most important verification             6.   Clients are reminded each week of outstanding             ment and that the private sector likewise has to know the BEE               ·   The “BEE status” means that the % rating of each supplier
   phases involved:                                                       awaited information.                                      status of their suppliers to complete the procurement part of their             will be visible to clients if they have been rated. Clients will
                                                                                                                                    scorecard.                                                                      be able to see the suppliers that are not in possession of a
   1st Phase – Prior to the Appointment between an                   4th Phase – Final Scorecard                                                                                                                    BEE rating certificate as well as those that have not reacted
   Emex verifier and an Emex client                                                                                                 When scorecard holders like companies and / or government or-                   to our requests to provide us with the scorecard and their
                                                                     1.   The captured information is double checked and            ganisations have to obtain the BEE scorecards and statuses for                  reasons for doing so.
   1.     Confirmation of the Emex agreement and proof of                 modified if needed by our senior verifying team           each and every one of their suppliers, they are normally over-              ·   The following is an example of a client enabled to view how
          performance by client.                                          (moderator):                                              whelmed by the enormity of the project. It seems that these sta-                many suppliers have been loaded onto the system with the
   2.     Updating of the Emex system by ticking payment             a.   Values entered on the scorecard calculator                tuses are normally determined by capital expenditures outside                   total contribution value of suppliers;
          made or money outstanding. A letter of assistance          b.   Amounts spent on preferential procurement                 the budget. Over and above the expenses, the amount of time
          will be automatically sent upon demarcation.               c.   Confirmation whether a supplier, where the most pro-      and expertise involved to present a functional report on suppliers          Client Supplier Lists
   3.     System access granted box on the EMEX system is                 curement is spent, does not have a scorecard.             normally proves to be too much for most. It needs to be stated
          enabled to email the client his username and pass-         2.   Calculation of final scorecards and printing variation    that the team allocated to attend to the matter is not generating           (1) Supplier List Entries
          word                                                            reports to PDF. Email to the client.                      the income they should at that time. The solution to these imped-
   4.     The letter of assistance will be emailed to the client     3.   Print and scanning of the certificate and email to the    iments is the extensive supplier management system of Emex                  :: For the year 2006: A total of 1707 suppliers had a total
          of which copies are to be printed and filed on your             client.                                                   that proves to be both cost effective and time efficient.                       expenditure of R xxxxx.xx
          behalf.                                                    4.   If the client is satisfied, requests are posted to head                                                                                   > View this supplier list’s report
   5.     Verifier confirms appointments with Client, and up-             office to print and post the BEE contribution certifi-    The Emex supplier management system is the ultimate solution                      •   Clients will be able to view from the list the com-
          dates the “audit” section.                                      cate.                                                     to overcome all barriers related to supplier management. Emex                         plete supplier report. All relevant information on
   6.     A client Information file is opened, which includes a      5.   Updates are made to the EMEX system by ticking            offers clients the management system currently used to take care                      each and every one of the suppliers will be avail-
          file number, company name and contact details.                  task completed.                                           of its own database, which contains many of the largest corpo-                        able in the system as seen from the example:
                                                                     6.   Clients are phoned to confirm whether they received       rate bodies (including multinational companies) in South Africa.
   2nd Phase – Appointment at Client is to be conducted                   all the intended documentation.                           This system should be the ideal system for any one attempting               XXXXXXXXXXXX (Name of Supplier)
   as follows                                                                                                                       to manage suppliers as it has been tried and tested on all sizes               BEE Rating: 91 %
                                                                     5th Phase – Press Release and Sign-off on Score-               and interfaces.                                                                Has been contacted (5) times before
   1.     Verifier completes the questionnaire and obtains           card                                                                                                                                          Placed in Recycle Bin
          copies of supporting documentation.                                                                                       A brief description of how the management system works is                      (Name of client) has spent R xxxx.xx on goods purchased
   2.     Capturing or request for list of suppliers for incorpo-    1.   www.PressReleases.co.za assists the client with a         given here:                                                                    and/or services rendered
          ration in the scorecard after call centre testing (Excel        press release and the distribution thereof. Ticking
                                                                                                                                                                                                                    (Name of Person calling the supplier)   +   Received scorecard from client...
          or printed version)                                             the box “Email Press Release Questionnaire” will au-      ·      Clients often submit lists of suppliers in formats like Micro-           Date and time of phone call
                                                                          tomatically email the questionnaire to the client.               soft Excel. Information is imported into the system to contain
                                                                                                                                                                                                                    (Name of Person calling the supplier)   +   Client was phoned.    P..
   3rd Phase – Initial Scorecard                                     2.   The person responsible at www.PressReleases.                     information similar to the table:                                        Date and time of phone call
                                                                          co.za will phone the client and send them drafts until
   1.     The client’s list of suppliers is forwarded to the data         they are satisfied.                                           Name      Contact
                                                                                                                                                  Person
                                                                                                                                                            Telephone
                                                                                                                                                            Number
                                                                                                                                                                        Fax Number   Amount Spent   Reference
                                                                                                                                                                                                    Number
                                                                                                                                                                                                                    (Name of Person calling the supplier)   +   Client was phoned. Client was fax..
                                                                                                                                                                                                                    Date and time of phone call
          capturers.                                                 3.   After the press release execution all the boxes on
   2.     Capturing of the information obtained by the verifier           Emex system should be ticked.                             ·      Once the information is received and the interface made op-
                                                                                                                                                                                                                    (Name of Person calling the supplier)   +   Client was phoned.    N..
                                                                                                                                                                                                                    Date and time of phone call
          (initial scorecard) on either the Generic or Qualified                                                                           erational, information is uploaded onto the Emex system.
          Small enterprise calculation system incorporating ad-      Client scorecard updates are accommodated when BEE             ·      When the information is in the system, it will be matched with
                                                                                                                                                                                                                    (Name of Person calling the supplier)   +   Client was phoned.    &..
                                                                                                                                                                                                                    Date and time of phone call
          vanced accounting methods applicable in each               scores escalate levels upward to allow clients the added              the information already present in the system and linked to
          case.                                                      benefit of a higher rating prior to the annual expiry of the          the particular client;                                                   (Name of Person calling the supplier)   +   Fax was received from XXXXXXXXX on
                                                                                                                                                                                                                    Date and time of phone call
   3.     E-mails of the initial scorecard are sent to the client    scorecard.                                                     ·      New suppliers will be contacted by telephone, e-mail and fax
          and client is phoned to confirm receipt thereof.                                                                                 to request BEE scorecards.                                               (Name of Person calling the supplier)   +   Client was phoned. Client was fax..
                                                                                                                                                                                                                    Date and time of phone call
                                                                                                                                    ·      Reporting is an ongoing process as scorecard statuses are
Page 19                                                                                                                                                                                                                                                                       Page 20




                                                                                                                                            BEE Training
   ·      Client is enabled to find alternative suppliers loaded       the needed documents from the supplier. All information will
          onto the Emex system holding alternative BEE score-          be kept on a reserve list. If and when the client require infor-
          cards, which will allow clients to make informed decisions   mation from a particular service provider, the reserve list will
          in terms of changing suppliers in order to increase the      be consulted and those suppliers can or will be contacted to
          amount of points gained on the BEE procurement sec-          tender or provide a quote.
                                                                                                                                          This article is applicable to you if you are engaged in any BEE      will focus on all aspects of the academic field of BEE including
          tion;                                                                                                                           related matters. Company owners, Human Resource Managers             the different roles of participants in the field of BEE. Entrants can
                            Suppliers          o                       When the client requires specific information such as company      and BEE service providers alike, should know exactly what the        expect NQF levels 5 and 6.
                         > My Supplier Lists                           documents, tax clearance certificates, etc., these documents       BEE field has to offer and how to test what is being said on the
                         > Add Supplier List
                                                                       may be uploaded onto the system at the “Document Manager”          subject. The purpose of this article is to prompt you to know what   The testing of candidates having undergone courses is done with
                         > Find Suppliers
                                                                       icon. When clients log in with their username and password,        you’re talking about and to protect you against BEE charlatans       “Exams Online” who have combined relevant BEE knowledge like
   ·      More features include that clients may obtain reports on     all the necessary documents can be viewed online. Clients will     who offer none but bumpy rides.                                      legislation, codes of good practice, recommendations by the DTI
          the suppliers’ BEE statuses on the system which may be       therefore not be burdened with unnecessary cabinets full of                                                                             (Department of Trade & Industry) and SANAS (South African Na-
                                                                                                                                          Education is the sure way to establish a functional platform for     tional Accreditation System), system requirements and business
          exported into CSV format;                                    hard copies for each an every supplier – all information is as
                                                                                                                                          people who are not only willing to serve the community in a sub-     needs. These exams provide the successful candidates with a
                                                                       close as the press of a button. Document requirements will be
                                                                                                                                          ject but to have sufficient tested knowledge to apply informed       certificate of competence that may be used anywhere in the field
   Apart from the features mentioned, clients will be provided         customized to suit each client’s individual needs i.e.:
                                                                                                                                          solutions.                                                           of BEE.
          with a web-link like the one below:
                                                                       Document Manager                                                   Uniformity in a system is what grants any national system of         The NWU is currently positioning itself as an advisor to both the
   http://xyzcompany.emex.co.za                                        The Document Manager allows you to specify what informa-           assistance the needed credibility and functionality. There have      Department of Trade and Industry and to the public concerning
                                                                       tion is contained in already uploaded documents                    been many discussions surrounding the topic of BEE, with little      BEE matters. NWU initiated the Verification Council of South Af-
   Websites are customized to meet the need of each and every                                                                             coherence. This is why the North West University (NWU) (Vaal         rica (VCSA) to attend to matters pertaining to research, advice
   client, reflecting the unity of the business without removing its   The cost for clients involved in the supplier management sys-      Triangle Campus) decided to present to both layman and profes-       to public bodies, complaints, appeals, academic consulting and
   individuality.                                                      tem, is a mere R5.70 per supplier per month. This will include     sional the opportunity to attend courses on the subject of BEE,      various other functions relating to BEE. The Forum has a panel
                                                                       all the features explained above as well as access to the sys-     where this uniform rule of conduct is honoured.                      of legal and financial advisors serving mainly the verification and
                                                                                                                                                                                                               consulting industry on an academic and third party level.
   Emex will first test the supplier’s BEE status and obtain all       tem and continuous support.
                                                                                                                                          The NWU has been committed to BEE since the inception of the
                         Top of Form                                                                                                      subject in South Africa and has now engaged in talks with sister     Since very few service providers have been formally trained or
                                                                                                                                          Universities to standardize all unit standards and outcomes of       tested for BEE knowledge and application ability, this opportu-
                           :: BEE Certificate
                                                                                                                                          BEE knowledge to ensure a stable and reliable BEE market.            nity to obtain a certification status amongst consultants who don’t
                                                                                        [ Assign Document ]
                                                                                                                                                                                                               necessarily seem to know all that is needed, seems to be the
                           :: Business Registration Number                                                                                The University has presented courses in BEE since August this        answer to interim accreditation problems, so get your house in
                                                                                        [ Assign Document ]                               year. These courses will be presented on a monthly basis and         order and phone Ilana today at (012) 323 5566.

                           :: Business Details
                                                                                        [ Assign Document ]

                           :: Physical Address                                                                                                                             BEE SCORECARD OPTIMISATION
                                                                                        [ Assign Document ]

                           :: Postal Address
                                                                                                                                                               LET US HELP YOU TO IMPROVE YOUR
                                                                                        [ Assign Document ]
                                                                                                                                                               SCORE AND OPTIMISE YOUR BUSINESS
                                                                                                                                                                         Marleze Swanepoel
                           :: Tax Clearance Certificate
                                                                                                                                                                               Tel: (012) 326 7714
                                                                                        [ Assign Document ]                                                                   Fax: (012) 3267819
                                                                                                                                                                    th
                                                                                                                                                                   4 Floor, Metropolitan Building
                           :: Trade References                                                                                                                      224 Pretorius Street, Pretoria
                                                                                        [ Assign Document ]                                                   Post Net Suite 76, Private Bag X927
                                                                                                                                                                                     Pretoria, 0001
                           :: VAT Number
                                                                                                                                                                     marleze@formality.co.za
                                                                                        [ Assign Document ]

                           :: Financial Statements
                                                                                        [ Assign Document ]
                                                                                                                               Page 22




NATIONAL EMPOWERMENT TRUST (NET)
Social Responsibility has been a neglected part of the score-       NET, but exposure needs to be funded in order for them to
cards since BEE scorecards have been introduced. The mar-           know where to apply.
ket indicates that persons generally know what to do in terms
of the scorecard optimisation but when it comes to social re-       Disability It has been an assessed need from the quarters of
sponsibility, very few business owners know what to do and          NET, to fund the needy with medical assistance. If ever there
who to forward money to.                                            was an under motivated need for help, it would be here, as
                                                                    these people have not asked to be disabled. Equipment and
For this reason, Emex decided to establish, in conjunction          services can and are to be sponsored by NET to alleviate the
with like-minded corporate bodies, a trust aimed at assisting       needs among these communities. NET partnerships with ex-
scorecard holders and interested parties alike with their BEE       isting organizations dealing with the disabled create an effec-
spending on Social and Enterprise development. The main             tive mechanism for proper results.
objective of NET is to alleviate poverty, create jobs, combat
crime and develop communities with the help of the funds from       Steps to be assisted by NET
mainly scorecard holders, who are motivated to contribute to
the cause and in the process obtain the scorecard contribution      Step 1: Write a letter and fax or email it to NET explaining
points needed.                                                      clearly what the need is. Be sure to include how you would
                                                                    see NET assist in fulfilling the need.
Feeding Schemes The persons assisted may be individuals
or groups of people of your choice, or in the case of no prefer-    Step 2: NET will relay the need to people who would be inter-
ences being held, NET will provide donors and subsequent re-        ested in donating funds to the needy in this way, after which
cipients with all they need to help their project grow. In so do-   private assessments will be done.
ing, contributors will be alleviating poverty whilst on the other
hand creating jobs. The assumption is made that these people        Where do NET funds come from? NET will be contracted to
will, for instance, use the products from their own garden for      distribute funds on behalf of companies that would like to con-
food or they will be able to sell it for profit.                    tribute to BEE and obtain recognition for these contributions
                                                                    on their BEE scorecards.
Health and Home Based Care Groups Since, in rural areas,
clinics and hospitals are far from the community, volunteers        What type of help is available? No money will be forwarded
often offer to assist patients at their homes. By the same im-      to the authors of need. In stead, the requested need will be
pediment, rural township residents have to fetch their own          attempted to be fulfilled by NET, by providing the requested
medication and medication is to be taken on time.                   instrument to fulfill the immediate need, i.e. tap water, medical
                                                                    supplies, service providers etc. NET believes that provision in
Day Care Centers For working mommies, this is the place             the form of a fishing rod will accomplish far more than a fish
where their children spend most of their time; they need toys       that is easily consumed with no guarantee of sustainability.
to keep them busy for the day. NET, if placed in the position
by donors, can provide such a place with the needed equip-          You are urged to contact NET for contributions of any nature
ment. A person can be trained for a day care course to attend       to the poor and needy. The advantage from a business point of
to the children.                                                    view lies in the increase in scorecard status regarding social
                                                                    responsibility and enterprise development. It needs to be said
Tap (drinking) water in rural schools We sometimes take             that auditors should be consulted with optimizers to ensure
running water for granted, but in many rural areas, there is        that taxation advantages are made full use of.
still a shortage of water. Children fill up containers at school,
because there is no tap water at home and more than often           Contact Mrs. Msiza at 012 326 2228 for more information on
this also seems to be the case at schools.                          NET trust and its advantages.

Technical Skills like welding, hairdressing, dressmaking,           Let it be known that:
beadwork and catering amongst others are of the much-need-
ed skills in the township areas for personal use and trading        “He is no fool who gives what he cannot keep to gain what he
opportunity. Anybody that is qualified in a field of craft and      cannot lose”
struggles to start a business is urged to apply for help from                                      ~John Turner~
Page 23                                                                                                                                                                                                                                                                     Page 24




   QUALIFIED LEADS & Training for Advisors                                                                                                     Useful links of BEE industry related service
   and Brokers in BEE INSURANCE                                                                                                                providers and roll players
                                                                                                                                               BEE Industry Charters                                           www.emex.co.za/beecharters.asp
   [With specific reference to BEE Scorecard Optimisation]                                                                                      BEE Exams online                                                www.examclnline.co.za
                                                                                                                                               Verification Council of South Africa                             www.vcsa.co.za
   Emex has been inundated with requests from the Insurance in-          by the North West University (Vaal Triangle Campus), clients          Formality BEE scorecard optimisation and business consultants   www.formality.co.za
   dustry to assist in the circulation of BEE scorecards, as this is     and service providers alike may be empowered in the sense that
                                                                                                                                               Growth, Employment and Redistribution Policy (GEAR)             www.info.gov.za/documents/index.htm
   a newly recognised doorway to enhanced service delivery and           the knowledge can be utilised for personal / private agendas as
                                                                                                                                               Reconstruction & Development Program                            www.polity.org.za/html/govdocs/rdp/rdp.html?rebookmark=1
   product awareness. Many Emex Agencies and Service Centres             long as it falls within the ambit of the BEE legislation and codes.
   have sprung up all over SA since the beginning of the year and        While implementing a well- planned BEE strategy internally,           Broad Based Black Economic Empowerment Act                      www.info.gov.za/gazette/acts/2003/a53-03.pdf
   demand is expected to grow in quarter four of 2006.                   the opportunity exists to do the same for existing clients at a       The Codes of Good Practice on BEE                               www.dti.gov.za/bee/codes2005.htm
                                                                         profitable rate once you have been trained.                           Employment Equity Act 55 of 1998                                www.polity.org.za/html/govdocs/legislation/1998/act98-055.html
   People in business have different requirements regarding the
                                                                                                                                               Skills Development Act                                          www.info.gov.za/gazette/acts/1998/a97-98.pdf
   subject of BEE, some are only involved in BEE in order not to         The North West University (Vaal Triangle Campus) offers a five-
                                                                                                                                               Competition Act, 1998                                           www.competition/index.htm
   lose their businesses and others refuse, as they fear losing a        day course in Black Economic Empowerment. These courses
   family business. Should they be acquainted with the detail of leg-    are geared to educate employees and the professional service          Preferential Procurement Framework Act (no.5 of 2000)           www.gov.za/gazette/acts/2000/a5-00.pdf
   islation, they would be advised that no such fear is warranted,       provider market like independent Insurance brokers. Knowledge         South African Government institutions                           www.gcis.gov.za/docs/directories/index.html
   as numerous allowances and exceptions may grant them their            of the subject offers you a huge amount of security, access to        Khula enterprise finance                                         www.khula.org.za
   wishes. A very common example of allowance would be small             money and secondary services to partake in, like products falling
                                                                                                                                               Industrial Development Corporation                              www.idc.co.za
   enterprises that may be excluded from black ownership and             under the heading of BEE INSURANCE.
                                                                                                                                               National Empowerment fund (NEF)                                 www.nefcorp.co.za
   black management all together, whilst still having the capacity to
   earn 100% on the scorecard.                                           North West University (Vaal Triangle Campus) Course in                Export Credit insurance Corporation (ECIC)                      www.thedti.gov.za
                                                                         BEE: Experts believe Qualified Financial Service Providers have       Competition Commission                                          www.compcom.co.za
   Scorecards imply an inevitable valued benefit for the insurance       an advantage above all advisors who have not been officially          Competition Tribunal                                            www.comptrib.co.za
   industry, as more and more insurance brokers seem to switch           tested on their BEE capability and now have the opportunity to:
                                                                                                                                               National Gambling Board (NGB)                                   www.ngb.org.za
   their trade to become Emex service providers. According to
                                                                                                                                               National Lotteries Board (NLB)                                  www.nlb.org.za
   SANAS, BEE service providers have to choose between score-            •      Attend a BEE course in tele-marketing, consulting (no
   card calculations and optimisation of scorecards if the BEE serv-            prior qualifications) and verification (B degrees required);   Liquor Board                                                    www.thedti.gov.za
   ice is rendered to the same business. The perceived trend is that     •      Obtain an NQF level 5 or 6 certificate from a SAQA ac-         National Credit Union                                           www.mfrc.co.za
   insurance brokers tend to either have two service providers or to            credited course and institution;                               Companies & Intellectual Property Registration Office (CIPRO)    www.cipro.gov.za
   use BEE scorecards as an optimisation opportunity. Emex was           •      Understand how to apply insurance as a BEE optimisa-
                                                                                                                                               South African National Accreditation System (SANAS)             www.sanas.co.za
   quoted to extend an open invitation to all insurance brokers to              tion tool; and
                                                                                                                                               Estate Agency Affairs Board                                     www.eaab.org.za
   engage in BEE with their own service centres.                         •      Have interviews with institutions countrywide that will take
                                                                                place on the final day of the course.                          International Trade Administration Commission (ITAC)            www.itac.org.za
   Optimisation of the BEE scorecard commonly refers to:                                                                                       Small Enterprise Development Agency (SEDA)                      www.seda.org
                                                                         Emex requests all clients to engage the person responsible for        State Owned Enterprises Procurement Forum                       www.soepf.org.za
   •      Legal and financial advice including structuring of busi-      BEE in the business to attend these courses at the University as
                                                                                                                                               Council for scientific and industrial research (CSIR)            www.csir.co.za
          nesses in the field of direct empowerment, which includes      it will pave the way for better understanding of BEE. This better
                                                                                                                                               National Research Foundation (NRF)                              www.nrf.ac.za
          legal, financial, taxation and insurance matters;              understanding of BEE will in turn ensure that right decisions are
   •      Advice and service in the field of Employment Equity re-       made internally to provide the business with maximum security         SEDA technology programme (STP)                                 www.stp.org.za
          ports and councils;                                            and trading capability.                                               South African bureau of Standards                               www.sabs.co.za
   •      Advice and assistance with skills development plans, re-                                                                             Proudly South African (PSA)                                     www.proudlysa.co.za
          ports, SDL levies, grants and advice on expenditure in         Upon conclusion of the above, applicants will have the opportu-
                                                                                                                                               AGRISETA                                                        www.agriseta.co.za
          training in the field of BEE;                                  nity to either apply the knowledge to their own businesses or
                                                                                                                                               BANKSETA                                                        www.bankseta.org.za
   •      Expenditure and service advice on social and enterprise        start their career in the field of BEE scorecard verification or
          development which includes alternate application advice        optimisation.                                                         CETA                                                            www.ceta.org.za
          referring to i.e. HIV/AIDS policies, funeral policies, prov-                                                                         CHIETA                                                          www.chieta.org.za
          ident and pension funds to name but a few;                     Should you be interested to obtain more information regarding         CTFL                                                            www.ctflseta.org.za
   •      Procurement analysis and guidance.                             Emex Express Agencies and Emex Service Centres, please con-
                                                                                                                                               ESETA                                                           www.eseta.org.za
                                                                         tact us at info@emex.co.za for more information or call Ilana at
                                                                                                                                               ETDP                                                            www.etdpseta.co.za
   It is trite to state that one is only as wise as the amount of wis-   012-323-5566.
   dom applied at any particular time. With the courses presented                                                                              FASSET                                                          www.fasset.org.za
Page 25



   BEE Industry Charters                                           www.emex.co.za/beecharters.asp
   BEE Exams online                                                www.examclnline.co.za
   Verification Council of South Africa                             www.vcsa.co.za
   Formality BEE scorecard optimisation and business consultants   www.formality.co.za
   Growth, Employment and Redistribution Policy (GEAR)             www.info.gov.za/documents/index.htm
   Reconstruction & Development Program                            www.polity.org.za/html/govdocs/rdp/rdp.html?rebookmark=1
   Broad Based Black Economic Empowerment Act                      www.info.gov.za/gazette/acts/2003/a53-03.pdf
   The Codes of Good Practice on BEE                               www.dti.gov.za/bee/codes2005.htm
   Employment Equity Act 55 of 1998                                www.polity.org.za/html/govdocs/legislation/1998/act98-055.html
   Skills Development Act                                          www.info.gov.za/gazette/acts/1998/a97-98.pdf
   Competition Act, 1998                                           www.competition/index.htm
   Preferential Procurement Framework Act (no.5 of 2000)           www.gov.za/gazette/acts/2000/a5-00.pdf
   South African Government institutions                           www.gcis.gov.za/docs/directories/index.html
   Khula enterprise finance                                         www.khula.org.za
   Industrial Development Corporation                              www.idc.co.za
   National Empowerment fund (NEF)                                 www.nefcorp.co.za
   Export Credit insurance Corporation (ECIC)                      www.thedti.gov.za
   Competition Commission                                          www.compcom.co.za
   Competition Tribunal                                            www.comptrib.co.za
   National Gambling Board (NGB)                                   www.ngb.org.za
   National Lotteries Board (NLB)                                  www.nlb.org.za

				
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