EconoBEE, one of the largest specialised BEE consulting companies in South Africa, has advised businesses to be acquainted with the new PPFA Draft Regulations which the National Treasury published on 14th June 2016.
A specialist from EconoBEE, Keith Levenstein, says the new legislation will impact on their BEE compliance and more importantly the way they do business with government entities.
“Changes to the BEE legislation will cause most businesses scores to drop substantially which will substantially limit their competitiveness in the market place. Alternative activities to earn points such as changing suppliers might require a radical directional change in business thinking and processes. Identifying points scoring activities while simultaneously eliminating weaknesses is essential to maintaining a satisfactory scorecard.
“A good understanding of BEE is perhaps the single best method to cause long term improvements to your companies BEE status,” he clarifies.
According to Levenstein, the following group of people should make sure that they learn more information about the PPFA Draft Regulations:
- all people in companies who submit government tenders
- financial, marketing and sales people
- Staff responsible for BEE
- Black owned businesses that want to identify new opportunities
- Organs of state who want to understand how they will have to issue and evaluate tenders in the futureAnd these people should be aware of the issues below:
- The Preferential Procurement Policy Framework Act
- The draft regulations:
- who these regulations apply to
- who are affected by the regulations
- proposed changes from previous regulations
- how organs of state will publish their tenders
- how organs of state will evaluate tenders
- pitfalls in submitting tenders
For the benefit of businesses that work for government, or want to do work for government, Levenstein says EconoBEE will organising workshops 30th June 2016 and 7 July 2016.
