TFM Talking Transformation launches Issue 21

Join us as a guest at the launch of the TFM Talking Transformation summit on Tuesday, 4th May 2021, between 09H00 and 11H00.

TFM Talking Transformation, in association with the BEE Chamber, launches the distribution of TFM Magazine Issue 21. It provides its readers with the opportunity to engage with industry thought leaders who unpack the content.

The objective is to create a safe space for attendees to encourage open and frank discussions. Together with thought leaders, we will delve into the articles' rationale, address the challenges, and challenge the panel.

Click to secure your place on Tuesday, 4th May 2021

The five articles that the panel of experts will unpack at the TFM Talking Transformation summit are:

Forum Shopping | Making the ‘glass slipper’ fit

Over the years, there has been much debate about who has the final say in interpreting the Codes of Good Practice (The Codes). The result is that organisations and those operating in the B-BBEE space, more often than not, are unconvinced as to which body of authority has the power of interpretation when seeking or challenging an opinion. The article illustrates who all players in the B-BBEE space are, their mandate and their powers. The point of this article is to allow you, the reader, to make an informed decision on which body of authority's interpretation to accept when seeking or challenging an interpretation in The Codes, irrespective of whether it is paid for or not. 

The Gamble of a Special Power of Attorney

As of 7th October 2020, the R47-03 replaced the R47-02 document. It is the blueprint for how SANAS accredits B-BBEE Rating Agencies on behalf of the Department of Trade, Industry and Competition (the dtic), which clarifies the role of B-BBEE Rating Agencies and the guidelines according to which they should operate. Although these regulations focus on SANAS accredited B-BBEE Rating Agencies, organisations should be aware of how these amendments limit and separate the B-BBEE Rating Agency services from a B-BBEE Consultant. As a result of the R47-03 amendments and the lack of in-house B-BBEE knowledge, many organisations find themselves in a predicament. They are not prepared to take a B-BBEE Verification from start to finish independently. Consequently, many are granting a Special Power of Attorney to their B-BBEE Consultant to act as an intermediary. This article explores this trend. What type of Power of Attorney is most suitable for a B-BBEE Verification, considering all parties' risk factors and the ultimate accountability thereof?

B-BBEE Considerations After Lockdown

 The Disaster Management Act, which was triggered one year ago, and the Regulations thereof did make allowances and provide relief for organisations on many fronts; however, it did not address B-BBEE legislation. Therefore, organisations remain obligated to present a valid B-BBEE Certificate or Affidavit to their clients with no extension period. This article unpacks every aspect of the scorecard. It identifies potential risk areas to an organisation's B-BBEE Strategy that stem from the initial lockdown that began in March last year. As it is improbable that any business was not affected positively or negatively, a re-evaluation of all organisations' B-BBEE Strategies is highly advisable.

When Lions Roar!

Earlier this year, a landmark court decision stemmed from a Notice issued regarding the intent to grant Telkom and its subsidiaries B-BBEE Facilitator Status to the Government (Facilitator Status) by the Minister of that time, Rob Davies. The rationale behind the South African Government, represented by the Office of the Presidency, issuing this status is that they are a 40.5% shareholder in Telkom. However, Telkom competitors perceived this as an unfair advantage. The article provides insight into this case from a B-BBEE perspective. The process and subsequent outcome have set a precedent in the B-BBEE space for the future. In effect, the Government must rationally and transparently implement, as well as account for, the B-BBEE policies it develops.

The Puzzle of Procurement Continues

In theory, procurement is straightforward. It is any service or product invoiced by a supplier whereby they purchased on behalf of a customer who appears in that supplier's invoice. However, enter Third-party Procurement Spend that must be measured as part of an organisation's Total Measured Procurement Spend (TMPS), and the process becomes more arduous.  The article delves into and provides examples of how organisations claim such spending.

Other articles featuring in TFM Magazine Issue 21 include:

The Preferential Procurement Policy Framework Act vs The B-BBEE Act

Last year the Supreme Court of Appeals (SCA) declared the 2017 Regulations to the Preferential Procurement Policy Framework Act invalid. The article considers these regulations, the SCA's decision as to why they were revoked and, most importantly, the impact this decision had on the B-BBEE Act and its Regulations.

A Technical Signatory Does Not Roll the Dice

The last step to issuing a valid B-BBEE Certificate is the process of a Technical Signatory (TS) signing it off. The role and responsibility of a TS are to confirm the evidence presented by an organisation through a Verification Analyst during a B-BBEE Verification. The ultimate responsibility lies with them to ensure that a B-BBEE Verification is indeed accurate and in line with the Code on which an organisation is measured.  The content outlines the vital role they play in the B-BBEE Verification process. It further highlights how an organisation can verify that the TS who signed off their B-BBEE Certificate is accredited.

The Alignment between the Employment Equity and B-BBEE Acts

The Employment Equity Act No. 55 of 1998, as amended, and B-BBEE Act 53 of 2003 as amended, are both pieces of legislation that seek to redress historic imbalances. This article illustrates their peripheral link and mandatory requirements.

The Leniency Programme is not a 'get out of jail free' card

Instituted by the B-BBEE Commission, the programme is a platform designed to incentivise organisations to take the initiative to approach the B-BBEE Commission, whereby they acknowledge participating in an Ownership Fronting Practice before 24th October 2014. The article provides full information about who qualifies for leniency, the process for prosecution immunity and rules following the granting of immunity.

YES Provides Fertile Ground for Participation

Recognising the vital role played by the Yes4Youth initiative (YES), TFM Magazine has featured different elements of the initiative since its launch. Not only worthy, with the potential to create job opportunities for the Youth, it supports organisations in their effort to showcase a more favourable B-BBEE Status Level. In this issue, we outline the YES Leniency Programme, a tool to encourage organisations to embark on their YES journey.

COVID-19 & 1 billion persons with disabilities

An overview of persons with disabilities who face marginalisation not only socially and economically, but in terms of their access to healthcare as well as fair integration into the national workforce. So, would it be fair to surmise that the COVID-19 pandemic and subsequent lockdowns have had a severe impact on the lives and livelihoods of the world's 1 billion most marginalised individuals?

 Click to secure your place at the TFM Talking Transformation Summit on May 4th between 09:00 and 11:00.