|How to Interpret a BEE Scorecard - EconoBEE Newsletter July 2008|
|Tuesday, 22 July 2008 11:26|
How does one interpret a BEE scorecard?
Over the past weeks we have come across hundreds of BEE scorecards, certificates and letters.
Some originate from the companies themselves, some from consultants and some from verification agencies.
Unfortunately there is no consistency in these documents. Each company uses their own “look and feel”, which is perfectly acceptable, but the information contained in each certificate or scorecard differs widely.
Some scorecards use the as-yet ungazetted financial services charter, for which the financial services companies have approval from the dti until the end of August 08 to use.
Others use the infamous A,AAA,B,BB rating methodology.
Many companies have supplied us with letters confirming that they are in the process of obtaining a rating.
Why ask for a scorecard?
The purpose of obtaining a scorecard from your supplier is to assist you in calculating points for Preferential Procurement. Up to 20 points are available (25 for QSE's) for this element. You only need a scorecard from suppliers, not customers!
To do your calculation to earn and maximise points you need to know the following information about your supplier.
If they are a value adding supplier
The percentage of black ownership in the business
The percentage of black female ownership in the business
If they are, or potentially could be, your enterprise development project
The rating period/expiry date of the rating
Do they have suitable proof for every item on the scorecard
Has the scorecard been signed by an authorised individual
In addition, many companies trade under different trade names, or are part of a group. It does become quite difficult to know exactly which scorecard applies to your own supplier.
We suggest you capture your suppliers and their scores by references both to their company registration number and VAT number. All invoices from your supplier must carry a registration number and VAT number if they are VAT registered. (If they are not VAT registered, they are probably EME’s and therefore level 4 or level 3).
All the other information on the documents/certificates you may receive is irrelevant!
Managing the preferential procurement element is certainly an
admin task, but it need not be too difficult if you follow our tips and
simple rules. There is no direct cost, other than searching for
appropriate suppliers and getting the right information from existing
suppliers. It is either 20% or 25% of your whole scorecard so
cannot be ignored.
BEE Verification Guidelines