Division: EIDD

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Division EIDD
VERIFICATION METHODOLOGY
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THE CODES OF GOOD PRACTICE FOR BROAD BASED
BLACK ECONOMIC EMPOWERMENT PREFERENTIAL
PROCUREMENTCODE 500
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CODE 500 - KEY PRINCIPLES
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BEE RECOGNITION LEVELS

• BEE status for companies will be recognised based
  on the status table above
• Customers (public and private sector) will prefer
  to interact and procure from companies with
  higher BEE status (for its own recognition)

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PREFERENTIAL PROCUREMENT SPEND

• Allowable Exclusions
• Salaries
• Loans and Donations
• Certain imports
• Rates Taxes, levy and
• post retirement funding and
• Investments loans,etc.
• Imports (Specific Exclusions as
• detailed in Statement 500)

Total Spend
Cost of Sales
Operational Expenditure
Capital Expenditure
TOTAL MEASURED PROCUREMENT SPEND
Non-BEE spend
BEE Spend
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CODE 500 - THE GENERIC PREFERENTIAL PROCUREMENT
SCORECARD
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CODE 500 THE GENERIC PREFERENTIAL PROCUREMENT
SCORECARD
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PREFERENTIAL PROCUREMENT VERIFICATION
METHODOLOGY

• In the Preferential Procurement element of the
  scorecard in respect of -
• BEE Procurement Spend from-
• All Suppliers based on the Procurement
  Recognition Level
• Qualifying Small Enterprises or Exempted Micro
  Enterprises based on the Procurement Recognition
  Level
• 50 Black Owned or 30 Black Women Owned
• Review Audited Financial Statements or a signed
  copy of management accounts and detailed income
  statements
• Obtain confirmation from management on any
  additional information that may be necessary for
  the calculation of total Measured procurement
  spend

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PREFERENTIAL PROCUREMENT VERIFICATION
METHODOLOGY

• In the Preferential Procurement element of the
  scorecard in respect of -
• Conduct cut-off tests by tracing a sufficient
  sample of goods received notes to confirm that
  the claimed procurement occurred during the
  reporting period
• Determine the applicable inclusions, exclusions,
  value-adding suppliers and Enterprise Development
  Beneficiaries
• When sampling the applicable exclusions in
  respect of Imports-
• Obtain a Value-Added Tax declaration in respect
  of Import Services from SARS
• Obtain the Measured Entities Importer
  Registration Certificate from SARS and
• Ensure that there is no local content (through a
  confirmation from Management)

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QUESTIONS AND DISCUSSION
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THANK YOU