Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Codes of Good Practice on Black Economic EmpowermentIntegrated Transport Sector CodesTaxi Industry Sub-Sector Code for B-BBEE7. Taxi Associations7.5 Preferential Procurement |
| 7.5.1 | This indicator refers to procurement from black-owned and empowered enterprises as a proportion of total procurement. Our challenge is to maximise procurement from such enterprises. Accordingly, all stakeholders commit as far as possible to identify and promote the use of black empowered suppliers. This process should help in the establishment vi business structures/trading co-operatives, which will facilitate cheaper fuel, spares, tyres, vehicles, etc. |
| 7.5.2 | Industry Commits to: |
| 7.5.2.1 | B-BBEE Procurement: Total B-BBEE spend as a percentage of Total Measured Procurement based on the B-BBEE recognition levels of suppliers with a compliance target set at 50% over 5 years. |
| 7.5.2.2 | QSE and EME: Procurement from QSEs and Exempted Micro Enterprises as a percentage of total Measured Procurement with a compliance target set at 15% over 5 years. |
| 7.5.2.3 | Black Women Owned and Black Youth Owned: Procurement from Black Women Owned and Black Youth Owned Enterprises as a percentage of total Measured Procurement with a minimum compliance target set at 12% from Black Youth owned companies and 8% from Black women owned companies over 5 years. |
| 7.5.3 | Measurement Principles and Application of Charter |
| 7.5.3.1 | Measurement principles associated with the preferential procurement element is contained in Statement 500 of Code 500 of the Generic Code of Good Practice. |
| 7.5.3.2 | Pass through third party procurement for a third party or a client that is recorded as an expense in the third party or client's annual financial statements but is not recorded as such in the Measured Entity's annual financial statements will be excluded. In this regard, only the commission portion paid to agents will be recorded as under procurement. |
| 7.5.3.3 | The formulae required in the determination of the preferential procurement score for measured entities are contained in Annexure 500 (A) of Statement 500 of Code 500 of the Generic Code of Good Practice. |
| 7.5.3.4 | Measurement principles required in evaluating the preferential procurement contributions made by QSEs within this sector are contained in Statement 805 of Code 800 of the Generic Codes of Good Practice. |