# Regulatory Compliance Category > BEE and Employment Equity Forum >  Where are the final BEE codes?

## Dave A

The consultation round on the draft BEE generic codes was wrapped up in May this year. The DTI would not commit to a firm timeline as to when the final codes would be released, but *did* say that the project enjoyed very high priority. The indication then was that the final codes would be published within 2-3 months, but could take longer.

OK. So let's double the timeline. This is taking longer than expected.

My concern is that the longer they take, the more tinkering is going on in the background - moving us ever further away from the agreements reached during the consultation stage. In the meantime preferential procurement remains focused on narrow based BEE - measuring ownership only.

So, where are the final BEE codes?
What is taking so long?
Why the delay?

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## PeterS

> So, where are the final BEE codes?
> What is taking so long?
> Why the delay?


Very good questions.  I wish we knew.

Did you try and phone them today?

I've heard that they would be presented to cabinet yesterday, but I haven't seen anything in the news at all.

I've just been through the whole process as I couldn't wait any longer.  The preferential procurement code is quite a mission, and there were a few 'unknowns' which I have decided will only be rectified once the final codes are released!

Peter

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## Dave A

These delays are certainly trying. There certainly is a pressing need for clarity. There is so much speculation which is always risky.

We can't keep our lives on hold forever.

At the consultation meetings, there was a strong call for simplification on the measurement of procurement for QSE's. Here's hoping....

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## duncan drennan

The codes managed to make it into the news tonight (SABC3 I think) - just caught the second half of the report, so not too sure what was said.

What was mentioned again was the raising of the bar, with the numbers R3-5mil being mentioned as the threshold.

Just checked the DTI website again - nothing new there. We wait in antici....

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## entoserv

> What was mentioned again was the raising of the bar, with the numbers R3-5mil being mentioned as the threshold.


*I'll* settle for that.  :Big Grin:

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## wynn

The Minister said all QSE would be fully compliant and the threshold was 3-5 Million, didnt say which.
report back in December sometime.

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## Dave A

I'm glad the talk is still around the R3-5mil mark. I was always worried that they might shy away from the fact that this is going to let the vast majority of small businesses off the hook.

I *am* concerned about what they are going to do with QSE's and what measures they might beef up in the big business codes to make up for the loss of direct leverage on smaller businesses.

The downstream effects of these codes are complicated. For example - big business _might_ have a big carrot dangled to support "emerging" businesses which could still have an indirect effect on exempt enterprises. Which means that exempt enterprises might still have to pay attention.

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## Dave A

I've just heard a rumour that the new codes are being released on Thursday.

In the meantime - this from the DTI published 7th December 2006:




> the dti has announced that Cabinet has approved Phase 2 of the Codes of Good Practice on broad-based black economic empowerment (B-BBEE). It deals with the scorecard and its elements: employment equity, skills development, preferential procurement, enterprise development, socio-economic development, qualifying small enterprises as well as the treatment of multinationals.
> 
> This will enable the Minister of Trade and Industry to gazette Phase 1 and 2 of the Codes of Good Practice early next year as well as gazette sector transformation charters for black economic empowerment.
> 
> Sectors will determine their own thresholds for exempted and qualifying enterprises, but the codes set a generic range of R5m to R35m for qualifying small enterprises. The full details of the contents of the codes will be released publicly next week and the final gazetted document of the codes will be made available early in 2007.
> 
> Cabinet endorsed Phase 1 of the codes in October 2005. These dealt with the conceptual framework, the verification agencies, sector transformation charters, ownership, the recognition of the sale of assets and management.
> from DTI here

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## Dave A

Stand by - here they come.

From Gov online




> *Events on 14 Dec*
> - Mpahlwa briefs media on Codes of Good Practice for Broad-Based Black Economic Empowerment

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## duncan drennan

The final code may not be here, but they have finally got a mention on the DTI's website, http://www.dti.gov.za. Importantly there is also an overview of the BEE codes of good practice available.

*Important to note - Micro enterprises = turnover < R5m = automatic level 4 (i.e exempt)*

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## Dave A

It's all there in the overview. Well spotted, Duncan. 

The QSE Codes have been renumbered 800 to 807. There's a few definitions that are going to need a bit of a look up, but clearly a vast improvement on the draft codes.

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## Dave A

Hmm. First question comes up already.

If your turnover is under R5 mil, but you could score higher than level 4 applying the QSE scorecard, can you opt in to be measured on the QSE code?

I guess I'll have to wait for the fine print to come out.

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## duncan drennan

> If your turnover is under R5 mil, but you could score higher than level 4 applying the QSE scorecard, can you opt in to be measured on the QSE code?


If I remember correctly from the draft codes that could be done. I don't see any reason why not, in fact I think they would encourage that type of action.

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## Dave A

I've been browsing the DTI website fairly regularly. Still no sign that the new codes have been gazetted yet. Cabinet gave approval ages ago  :Roll Eyes (Sarcastic):  

The brochure gives a rough idea of what is coming, but where's the detail?

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## PeterS

Check the dti website gain - they were gazetted on Friday.

Peter

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## duncan drennan

Thanks Peter, will definitely have a read.

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