Monday, April 26, 2010

2012

If I had to ask someone what the significance of 2012 is I would probably get something back about the Mayan Calendar and the end of the world...

However if the same question was put to a BEE specialist they would add that it is the year from which the 2nd set of DTi BEE targets apply in respect of Employment Equity and Preferential Procurement.

The effect for preferential procurement may not be too great as every year the number of suppliers being able to provide BEE Certificates is increasing. However for employment equity the effect will be magnified as the sub-minimum targets are increased accordingly, having the possibility of eliminating the score entirely for any of the four measured categories where the score slips beneath the increased sub minimum requirement. This might not seem too important in the bigger scheme of things but for many companies it may well mean a drop back in their BEE Level if they have not been carefully managing their transformation plans and activities. By the way, the increased 2012 targets apply to QSEs as well!

For some companies in sectors where an Industry Charter applies, it may be another solid reason to evaluate the use of the Charter scorecard that will have a 5 year horizon commencing from the date the Charter was gazetted and probably more favorable targets anyway. But is this an option? There is a current discussion within the BEE industry regarding the right to choose to use an Industry Charter with many insisting that sector participants have no choice but to measure against their industry charter scorecard if more than 50% of revenue is derived from that industry sector.

Recently I was asked to re audit a company because their customer – a Government Dept – refused to accept their new DTi QSE scorecard, insisting that they send them a Construction Industry Certificate instead. This caused them to be rated as a Generic Entity under the Construction Charter rather than as a QSE under the DTi Codes. Needless to say, the affect on their BEE level was dire!

Mantis Networks has now amended its software to show current and 2012 scores to aid companies plan for this transition period and is developing its Charter equivalents at an increasing rate.