What is a BEE scorecard?

The BEE Scorecard is a verified report on your current status as a BEE contributor according to the latest DTI Codes of Good Practice (released 9 February 2007).

How many are there?

Six such scorecards exist.

1. Generic scorecard applicable to all entities with turnover of 35 Million rand and more per annum and which are measured on all seven BEE elements under this scorecard;
   Can be represented as follows:

   Element	Weighting
   Ownership	20 points
   Management control	10 points
   Employment equity	15 points
   Skills development	15 points
   Preferential procurement	20 points
   Enterprise development	15 points
   Social-economic development	5 points
   	Total earnable points : 100

   * Click here to download the complete Generic Scorecard template

2. Adjusted generic scorecard for specialised enterprises which are measured on six of the seven BEE elements under this scorecard (ownership is excluded). Examples include Government owned enterprises, Section 21 companies and Trusts;
   Can be represented as follows:

   Element	Weighting
   Management control	15 points
   Employment equity	15 points
   Skills development	20 points
   Preferential procurement	20 points
   Enterprise development	15 points
   Social-economic development	15 points
   	Total earnable points : 100

3. QSE scorecard applicable to Qualified Small Enterprises (QSE), with turnover of more than 5 Million but less than 35 Million rand per annum, which are measured on any four of the seven BEE elements under this scorecard;
   Can be represented as follows:

   Element	Weighting
   Ownership	25 points
   Management control	25 points
   Employment equity	25 points
   Skills development	25 points
   Preferential procurement	25 points
   Enterprise development	25 points
   Social-economic development	25 points
   	Total earnable points : 100 (Any four of the elements may be chosen Element Weighting)

   * Click here to download the complete QSE Scorecard template

4. Adjusted QSE scorecard for specialised enterprises with a turnover of more than 5 Million rand per annum, which are also QSE’s, and which are measured on six of the seven BEE elements under this scorecard (ownership is excluded). Examples are the same as in 3 but the turnover is less than 35 Million rand;
   Can be represented as follows:

   Element	Weighting
   Management control	25 points
   Employment equity	25 points
   Skills development	25 points
   Preferential procurement	25 points
   Enterprise development	25 points
   Social-economic development	25 points
   	Total earnable points : 100 (Any four of the elements may be chosen Element Weighting)

5. Transitional scorecard applicable to all entities which choose not to be measured under the generic scorecard for the first year after the commencement of Statement 000 Code 000 (until 8 February 2008). The ownership and management BEE elements are multiplied by factor of 1.92 to achieve a transitional score;

6. Exempted scorecard is applicable on entities with a turnover of less than 5 Million rand per annum. In the first year of a start-up business, it automatically qualifies as exempted even if the turnover is more than 5 Million rand. These exempted businesses are recognised as a Level 4 BEE contributor and can be elevated to Level 3 if their ownership is in excess of 50% owned by black people or 50% owned by black women.

The BEE Recognition Level is the level of recognition a client receives from buying from a BEE compliant supplier. For example:

[Amount Spent at supplier] x [BEE Recognition Level] = Monetary recognition for buying from that particular supplier.

The following table lists the BEE Recognition Levels linked to a BEE Status:

BEE Status	Qualification	BEE Recognition Level
Level One Contributor	>= 100 points	135%
Level Two Contributor	>= 85 but < 100 points	125%
Level Three Contributor	>= 75 but < 85 points	110%
Level Four Contributor	>= 65 but < 75 points	100%
Level Five Contributor	>= 55 but < 65 points	80%
Level Six Contributor	>= 45 but < 55 points	60%
Level Seven Contributor	>= 40 but < 45 points	50%
Level Eight Contributor	>= 30 but < 40 points	10%
Non-Compliant Contributor	< 30 points	0%

The BEE Act and the Codes recognise transformation charters as evidence of the commitment by the sectors that adopted them which are supposedly aligned to the Codes of Good Practice.

Examples are the Financial Sector Charter, Construction Sector Charter, Forestry Sector Charter, Tourism Sector Charter and Transport Sector Charter .

The South African National Accreditation System criteria and guidelines for the accreditation of B-BBEE Verification Agencies, reference R 47, are very specific about the fact that a Verification Agency cannot be both a “referee and a player”. In even more simple terms, that means that a Verification Agency cannot act as a consultant for any of its clients if it intends to carry out their Verification. There is also the prescribed need for a minimum period of 2 years to elapse following the end of any BEE consultancy process either by a Verification Agency, or by any related party, before that same Verification Agency may carry out the verification process.

Under the section headed “Management of impartiality”; Item 14.6.2 clearly states that the BEE Verification Agency and any related party shall not offer or provide both BEE verification and BEE consultancy to the same measured entity.

* Click here for more information