• Posted on: 15 August 2019
  • By: admin

Preferential Procurement forms part of the priority element being Enterprise & Supplier Development.

Maximising the Procurement score can contribute 27 (+2 bonus points) to the total B-BBEE Scorecard, which is approximately 24% of the total scorecard.

The Procurement Analysis is a very important part of the verification process as well as the B-BBEE Planning process, as it addresses the following areas:

  • Monitoring current Supplier's B-BBEE Status.
  • Identifying Non-Compliant Suppliers & Suppliers with low or no B-BBEE Ratings.
  • Identifying Preferred Suppliers (QSE & EME Suppliers) & (51% Black Owned & 30% Black Woman Owned Suppliers).
  • Validating B-BBEE Certificates & Affidavits to ensure that they are for Verification.
  • Offering Procurement solutions to assist current suppliers to improve their B-BBEE ratings or identifying other Goods & Service Providers for the Entity.

It is very important to ensure that all supplier's B-BBEE Certificates & Affidavits are valid when preparing the verification file.
All invalid Supplier Certificates & Affidavits will be rejected by the Verification Agency and increase the risk of the Verification process (which will result in a very large sample selection from the Verification Agency).
Not only will this prolong the Verification process, it will result in a loss of points on the Preferential Procurement scorecard, and ultimately affect the final B-BBEE Rating Level of the Company.

Due to the risks involved with regards to the B-BBEE Verification process, all companies preparing for Verification, must have a detailed Procurement Analysis done to ensure a smooth and easy process.

Brendan Aiken
B-BBEE Consultant – Compliance Hub