Generic Verifications – Harvest BEE Solutions

Generic Verification’s

A Generic Verification, under the amended Codes of Good Practice, is an enterprise with an annual turnover of more R50 million. These thresholds may vary from sector to sector.

Under the Amended Codes:

The seven elements of the scorecard have been reduced to five elements.
Employment Equity has been absorbed onto the Management Control element.
Enterprise Development and Preferential Procurement have now been combined and an additional indicator (Supplier Development) introduced to create one element called Enterprise and Supplier Development (ESD)

The amended codes of good practice have also introduced the concepts of priority elements, subminimum and the discounting principle. Certain elements of the scorecard are deemed “priority elements”. Generics are required to comply with all priority elements, failure to meet this subminimum will result in the entity’s B-BBEE status level being discounted one level down.

B-BBEE elements	Priority Elements And Subminimun
GENERIC’s will need to be measured against all five elements Ownership Management Control Skills Development Enterprise and Supplier Development Socio Economic Development	Ownership (Compulsory Priority Element) Subminimum is 40% of Net Value based on the Time-Based Graduation Factor Skills Development (40% of the total weighting points for skills development) Enterprise & Suppliers Development Subminimum is 40% for each of the three categories within the ESD element, namely preferential procurement, supplier development & enterprise development.