The first thing you need to understand is how many points you need to be a level 2 under the revised codes. Id est
|
Contribution Level |
2007 Codes |
2013 Codes |
Recognition level |
|
Level One |
≥ 100 points |
≥ 100 points |
135% |
|
Level Two |
≥ 85 points but < 100 points |
≥ 95 points but < 100 points |
125% |
|
Level Three |
≥ 75 points but < 85 points |
≥ 90 points but < 95 points |
110% |
|
Level Four |
≥ 65 points but < 75 points |
≥ 80 points but < 90 points |
100% |
|
Level Five |
≥ 55 points but < 65 points |
≥ 75 points but < 80 points |
80% |
|
Level Six |
≥ 45 points but < 55 points |
≥ 70 points but < 75 points |
60% |
|
Level Seven |
≥ 40 points but < 45 points |
≥ 55 points but < 70 points |
50% |
|
Level Eight |
≥ 30 points but < 40 points |
≥ 40 points but < 55 points |
10% |
|
Non-Compliant Contributor |
< 30 points |
< 40 points |
0% |
Gaming companies need to achieve a level 2 BEE score in order to retain their gambling licence. The scenario below is a speculative maximum score that Tsogo Sun might hope for under the revised codes. The score is probably too generous. It will take quite a few years for them to get to a level 2.
|
2007 Codes |
2013 Codes |
||||
|
Element |
Weighting (excluding bonus points) |
Tsogo Sun 2013 score |
Element |
Actual points as per each code (excluding bonus points) |
Possible Tsogo Sun score |
|
Ownership |
20 |
23 |
Ownership (priority element) |
25 |
25 |
|
Management |
10 |
4.44 |
Management control |
19 |
5.3 |
|
Employment Equity |
15 |
10.91 |
Skills development (priority element) |
20 |
10 |
|
Skills development |
15 |
13.45 |
Enterprise and Supplier Development (priority element) |
40 |
19.5 |
|
Preferential procurement |
20 |
18.38 |
Socio-economic development |
5 |
5 |
|
Enterprise Development |
15 |
15 |
|
|
|
|
Socio-economic development |
5 |
5 |
|
|
|
|
TOTAL |
100 |
90.18 (level 2) |
|
109 |
64.8 |
|
Level 7, but Preferential Procurement subminimum has not been met, demoted to a level 8 |
|||||
They've been demoted to a level 8 under procurement because it's going to take years for their suppliers to get to an acceptable score under the revised codes. The submminimum under the revised codes is not going to be reached in a hurry.
|
Subdivision |
Total Points |
Required subminimum |
|
Preferential Procurement |
25 |
10 |
|
Supplier Development |
10 |
4 |
|
Enterprise Development |
5 |
2 |
|
TOTAL |
40 |
16 |
Their only hope is to allocate 40% of their spend to 50% black owned businesses (many of which need to be black women owned). I don't think this will happen. Even if they do they are not going to get to a level 2. What then becomes of their gaming licence? It's managed by a DTI company – I think it's under an absolute threat. It's not likely that the clerk or board that considers the longevity of such a licence will understand why Tsogo has not hit its level 2 under the revised codes.
As a matter of interest there is a large group who have expressed a desire to support our action against the minister. I'll keep you posted.