Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Sector CodesDefence Sector Code18. Elements of the Defence Sector Code: The Qualifying Small Enterprises Defence Scorecard |
18.1 | QSE Scorecard |
The following table represents and contains the Elements of the scorecard and the weighting for each element:
Element |
Weighting |
Ownership |
25 points |
Management Control |
15 points |
Skills Development |
25 points |
Enterprise and Supplier Development |
30 points |
Localisation |
10 points |
Socio-Economic Development |
5 points |
Total |
110 Points |
The Weighting in respect of any elements in the scorecard represents the maximum number of points possible for each of the criteria
Any matter concerning the application of the QSE Scorecard that is not dealt with explicitly in this Sector code must be dealt with in terms of the Codes.
18.2 | The Qualifying Small Enterprises Ownership Scorecard |
Category and Ownership Indicator |
Weighting Points |
Compliance targets |
||
Year 1 |
Year 2 |
Year 3 |
||
Voting rights |
||||
Exercisable Voting Rights in the Enterprise in the hands of Black people |
5 |
25% |
30% |
35% |
Exercisable Voting Rights in the Enterprise in the hands black women |
2 |
10% |
15% |
15% |
Economic Interest |
|
25% |
30% |
35% |
Economic Interest of Black people in the Enterprise |
5 |
25% |
30% |
35% |
Economic Interest of black women in the Enterprise |
2 |
10% |
15% |
15% |
New Entrants or Black Designated Groups |
3 |
2% |
3% |
5% |
Realisation Points |
||||
Net Value
|
8 |
Refer to Annexure 100 (E) of the Generic Scorecard |
|
|
Total |
25 Points |
|
|
|
18.3 | The Qualifying Small Enterprise Management Control Scorecard |
Criteria |
Weighting points |
Compliance targets
|
||
Year 1 |
Year 2 |
Year 3 |
||
Executive Management |
||||
Black representation at Executive Management |
5 |
50% |
50% |
60% |
Black female representation at Executive Management |
2 |
25% |
25% |
30% |
Senior, Middle and Junior Management |
||||
Black representation at Senior , Middle and Junior Management |
6 |
60% |
60% |
70% |
Black female representation at Senior, Middle and Junior Management |
2 |
30% |
30% |
30% |
Total |
15 Points |
|
|
|
18.4 | The Qualifying Small Enterprise Skills Development Scorecard |
Skills Development Element |
Weighting points |
Compliance targets
|
||
Year 1 |
Year 2 |
Year 3 |
||
Skills development expenditure on learning programs specified in the learning programme matrix for Black people as a percentage of leviable amount |
16 |
3% |
3% |
4% |
Skills development expenditure on learning programmes specified in the learning programme matrix for Black females as a percentage of leviable amount |
10 |
1% |
1% |
2% |
Skills development expenditure on learning programmes specified in the learning programme matrix for Black people with disabilities as a percentage of leviable amount |
4 |
0.15% |
0.15% |
0.30% |
Bonus Points |
||||
Number of Black people absorbed by the measured entity and industry at the end of the learning |
5 |
100% |
100% |
100% |
Total |
30 Points |
|
|
|
18.5 | The Qualifying Small Enterprise and Supplier Development Scorecard |
Criteria |
Weighting points |
Compliance targets
|
||
Year 1 |
Year 2 |
Year 3 |
||
Preferential Procurement |
||||
B-BBEE Procurement Spend from all Empowering Suppliers based on the B-BBEE Recognition Levels as a percentage of Total Procurement Spend |
15 |
60% |
60% |
70% |
B-BBEE Procurement Spend from Empowering Suppliers that are at least 51% black owned based applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement |
4 |
15% |
20% |
30% |
Bonus Points |
||||
B-BBEE Procurement Spend from Designated Group suppliers that are at least 51% black owned based on the B-BBEE Recognition Level |
1 |
1% |
1% |
1% |
Supplier Development |
||||
Annual value of all Supplier Development Contributions made by the Measured Entity as a percentage of the target. |
4 |
1% of Net Profit After Tax |
|
|
Enterprise Development |
||||
Annual value of Enterprise Development Contribution and Sector Specific Programmes made by the Measured Entity as a percentage of the target |
4 |
1% NPAT |
|
|
Annual Contributions to the Enterprise and Development Fund |
3 |
1% NPAT |
|
|
Bonus Points |
||||
Bonus point for graduation of one or more Enterprise Development beneficiaries to graduate to the Supplier Development level |
1 |
|
|
|
Bonus point for creating one or more jobs directly as a result of Supplier Development and Enterprise Development initiatives by the Measured Entity |
1 |
|
|
|
Total |
30 Points |
|
|
|
18.6 | The Qualifying Small Enterprise Localisation Scorecard |
B-BBEE Element |
Indicator |
Description |
Weighting Points |
Compliance Target |
Localisation |
|
Defence Matériel products and services manufactured by procured from local enterprises |
6 |
60% |
Procurement from local enterprises that introduce new locally developed technology in the SADI that is not older than 24 months |
2 |
60% |
||
Procurement of technologies are developed in South Africa by Local Enterprises from intellectual property owned by such Local Enterprises or technologies that are developed in South Africa by Local Enterprises from intellectual property licensed thereto by Local or Foreign Enterprises. |
2 |
60% |
||
|
|
Total |
10 Points |
|
18.7 | The Qualifying Small Enterprise Socio-Economic Development Scorecard |
Criteria |
Weighting points |
Compliance targets |
||
Year 1 |
Year 2 |
Year 3 |
||
Annual value of all Socio-Economic Development Contributions and Qualifying Socio-Economic Development Contributions made by the Measured Entity as a percentage of the target |
5 |
1% NPAT |
1% NPAT |
1% NPAT |
Total |
5 Points |
|
|
|