Coega retains B-BBEE Level 1 status for the second consecutive year

BY SUPPLIED - MAY 19, 2015

The Coega Development Corporation (CDC) has, as at the end of April 2015, achieved the Broad Based Black Economic Empowerment (B-BBEE) Level 1 status - for the second consecutive year.

“The CDC, as catalyst for socio economic advancement, continues to demonstrate its commitment to transformation and black empowerment through this achievement,” said Andile Ntloko, head of CDC SMME Development Unit.

The Level 1 status is based on the financial period 2014/15.  The organisation has undergone a full B-BBEE audit by BEEVER a South African National Accreditation System (SANAS) accredited verification agency based in East London.

For its 2014 – 2015 financial year, CDC was measured against the Adjusted Generic Scorecard (AGS) for companies with an annual turnover above R35 million. The organisation achieved a total score of 100 points, with B-BBEE procurement recognition of 135%.

“We also qualify as a value adding supplier, which has additional benefits of increasing our clients’ B-BBEE scorecard under preferential procurement element by 168.75%,” said Nolubabalo Pandle, CDC senior BEE Analyst. 

The CDC was measured on six B-BBEE elements, each of which contributed to the outcome of the scorecard based on set targets and weightings. Last year, the CDC became the first state-owned enterprise to achieve a B-BBEE Level 1 contribution status.

As an Implementing Agent (IA) for Programme Management and related services, this achievement positions the organisation as a preferred service provider and business partner.

“We pride ourselves in continued contributions supporting the integration of black people and communities in economic activities. We further promote the procurement of goods and services from Small, Medium and Micro Enterprises (SMMEs), including black-owned and black women-owned enterprises who are also B-BBEE Compliant,” said Ntloko.

According to the revised B-BBEE Codes of Good Practice, SMMEs with an annual turnover below R10 million will be granted an automatic Level 1 Status if 100% black-owned and if more than 51% black owned, a Level 2 B-BBEE status.  These further receive an automatic recognition as Empowering Suppliers. For Exempt Micro Enterprise (EMEs), the only requirement to confirm turnover and black shareholding is a sworn affidavit and no longer an EME certificate from an accounting officer or verification agency.

On the other hand, large companies with annual turnover above R50 million will need to comply with five B-BBEE elements in accordance with the new scorecard. The revised codes have reduced scorecard elements from 7 to 5 by combining Management Control and Employment Equity into one element and Preferential Procurement and Enterprise Development into one element.

“We look forward with anticipation to the implementation of the Amended B-BBEE Codes of Good Practice. The revised codes pose both challenges and opportunities for us,” said Ntloko. 

“The organisation has started putting in place strategies to achieve targets in line with the proposed changes.  The organisation will to continue implementing programmes to build the capacity of black owned SMMEs and also ensure that they benefit from procurement opportunities presented by CDC,” he added.

The organisation will also put in place sector specific programmes to benefit a wide range of SMMEs as part of its Enterprise and Supplier Development Programme.

 

Photo Caption: The Coega Development Corporation (CDC) retains its B-BBEE Level 1 status. Holding the B-BBEE certificate Bongeka Jojo, CDC Chief Financial Officer (CFO) and Zola Ngoma, CDC Performance and Talent Management Unit Head.