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your latest completed financial year and if your BEE planning is not in place with
the necessary initiatives undertaken, you may be caught off guard in the event
of the Bill being finalised and not be able to renew your Fidelity Fund certificate. BEE
The Bill then determines that this may require you to repay any commission, fees
or remuneration received from the sale or lease of a property, failing which you
could be guilty of an offence.

Given the grave consequences of not renewing your Fidelity Fund certificate
without a BEE certificate once the Property Practitioners Bill is finalised, it is
advisable, where your estate agency turnover is above R2.5 million, to consult
with a BEE specialist to help you plan to meet the requirements of the Property
Code and be BEE compliant.

Many benefits for a 51% black-owned company

Adrian Frewen
July 2018

“My start-up business has been growing rapidly and I’m considering bringing
a partner on board to invest and help take the business to the next level.
I’m keenly aware of the importance of transformation and have identified a
potential BEE partner who is prepared to take up a 51% stake in my business.
That said, a new partner is a big decision and I just want to make sure there is
sufficient strategic benefit in doing so?”

Since the Amended Codes of Good Practice for BEE (“BEE Codes”) came
into operation about three years ago, many larger companies have found it
increasingly difficult to comply with the elevated targets set for them under the
Procurement element of their BEE scorecard.

Such larger companies (Generic entities) must ensure that 40% of their total
procurement expenditure is from 51% black owned suppliers. Accordingly, 51%
black owned suppliers have become highly sought after and favoured by
larger companies who are under tremendous pressure to maximise their points
under the Procurement element. This has created opportunities for companies
that are 51% black owned to be highly competitive and contend for supplier
contracts, previously not open to them.

Recently proposed amendments to the BEE Codes propose to further enhance
the opportunities for 51% black owned companies by establishing additional
incentives for companies to procure from 51% black owned suppliers, thereby
strengthening the strategic value for a company to be 51% black owned.
The draft amendments published for comment on 15 June 2018 propose the

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