LOUISE BICK AND MOTSHIDISI MAZIBUKO
Towards the end of 2012, the DTI produced the Revised Broad-Based Black Economic Empowerment (B-BBEE) Codes of Good Practice and B-BBEE Technical Assistance Guidelines (the Revised Codes), Government Gazette 35754 on October 5 2012. The Revised Codes included a significant adjustment to the scoring method of the current BEE Scorecard and certain seemingly innocuous changes to Code Series 700 (the original code) relating to the Socio-Economic Development (SED) Elements of B-BBEE were made.
What's all the fuss?
Under the original code entities could earn up to five points on their B-BBEE scorecards if they donated a Socio-Economic Development (SED) contribution of 1% of their Net Profit After Tax (NPAT) to beneficiaries compliant with the requirements of the original code. The requirements were twofold; first that contributions could be monetary or non-monetary in favour of beneficiaries "with the specific objective of facilitating sustainable access to the economy for those beneficiaries" and second, that at least 75% of the full value of the contribution must have directly benefited black people.
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