When it comes to B-BBEE, there is always a great deal of confusion around the requirements, targets, various sector charters, affidavits as well as the verification process. Generally, when the annual turnover of an organisation (known as the Measured Entity / ME) does not exceed R10 million per annum, the general assumption is that an affidavit may be completed free of charge (take note that UNDER NO CIRCUMSTANCES may you be charged for an affidavit, as per the BEE Commission). See link below for further information.

https://signa.co.za/wp-content/uploads/2018/09/Practice-Guide-01-of-2018-Determining-Validity-of-a-B-BBEE-Certificate.pdf

The Transport Sector Charter gazette no 32511 took effect on 21 August 2009. It is still based on the “old” Codes of Good Practice. Remember, each sector charter’s foundation is the general codes, however specific requirements aligned with the relevant sector / industry is written into the sector charters, to accommodate transformation within each relevant sector.

Below are a few short guidelines regarding the Transport Sector Charter:

  1. There are eight (8) sub-sectors written into the Transport Sector Charter:
  • Bus Commuter and Coach Services Sub-Sector Code
  • Taxi Industry Sub-Sector Code
  • Road Freight Sub-Sector Code
  • Public Sub-Sector Code – Transport
  • Maritime Transport and Services Industry Sub-Sector Code
  • Forwarding and Clearing Sub-Sector Code
  • Rail Sub-Sector Code
  • Domestic Aviation Sub-Sector Code

 

  1. The classification Thresholds for the Transport Sector according to annual turnover is:
    • EME (Exempt Micro Enterprise) – Annual Turnover not exceeding R5 million
    • QSE (Qualified Small Enterprise) – Annual Turnover greater than R5 million but not exceeding R35 million
    • Generic (Large Enterprise) – Annual Turnover exceeding R35 million

 

  1. There are NO AFFIDAVITS for the Transport Sector!!

Should your turnover not exceed R5 million per annum, thus classifying your organisation as an EME, you will qualify for automatic levels, however the rules are slightly different when looking at the “old” codes. EME’s may either obtain a letter from their accounting officer confirming their annual turnover and black shareholding. Alternatively, they may opt for verification with a SANAS accredited verification agency and be issued and EME certificate.

 

  1. EME Levels:

The following B-BBEE Levels are allocated according to % black shareholding:

  • Level 3 – Assigned to EME’s within the Transport sector with a black shareholding exceeding 50%
  • Level 4 – Assigned to EME’s within the Transport sector with a black shareholding of 50% or less
  • Should the EME wish to increase their level, they may opt for verification as a QSE and proceed to be verified according to the QSE scorecard. There is no Level 1 or Level 2 for EME’s unless they proceed with a QSE verification.

 

  1. QSE requirements

There are NO AFFIDAVITS for QSE’s in the Transport Sector!!

A QSE must select 4 of the following 7 elements to be rated on:

  • Ownership
  • Management Control
  • Employment Equity
  • Skills Development
  • Preferential Procurement
  • Enterprise Development
  • Socio-Economic Development

Remember, should your certificate not be a valid B-BBEE Certificate, issued in accordance with your relevant sector codes’ requirements, it may be reported to the BEE Commission for misrepresentation and could potentially be investigated.

If found guilty and convicted of an offence in terms of the B-BBEE Act 53 of 2003 as amended by act 46 of 2013, is liable either to a fine and/or imprisonment for a maximum period of 10 years.

It is imperative to realise that ignorance is not an excuse and the onus remains on the Measured Entity to educate themselves accordingly.

Should you require additional information, send me a mail and I will revert – zandri@resionex.co.za

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