6.1. OBJECTIVE OF THIS STATEMENT
| 6.1.1. | The objectives of this statement are to provide guidance about the treatment of ownership for Specialized Enterprises for Broad Based Black Economic Empowerment (B-BBEE) purposes of: |
| 6.1.1.1 | companies limited by guarantee; |
| 6.1.1.2 | higher Education Institutions; |
| 6.1.1.3 | non-profit companies; |
| 6.1.1.4 | public entities and other Enterprises exclusively owned by organs of state; and |
| 6.1.1.5 | public Benefit Schemes or Public Benefit organisations; and |
| 6.1.2. | specify Scorecards applicable to Measured Entities subject to this statement. |
| 6.2.1 | Every organ of state and public entity must apply any relevant Codes of Good Practice issued in terms of the Act as amended when: |
| 6.2.1.1 | determining qualification criteria for the issuing of licenses, concessions or other authorisations in respect of economic activity in terms of any law; |
| 6.2.1.2 | developing and implementing a preferential procurement policy; |
| 6.2.1.3 | determining qualification criteria for the sale of state-owned enterprises; |
| 6.2.1.4 | developing criteria for entering into partnerships with the private sector; and |
| 6.2.1.5 | determining criteria for the awarding of incentives, grants and investment schemes in support of B-BBEE. |
| 6.3 | Public entities and other enterprises exclusively owned by organs of State are not capable of evaluation of black ownership under code series 100. |
| 6.4 | Higher Education Institutions are public entities under the Public Finance Management Act, 1999 (Act No. 1 of 1999). They are incapable of evaluation of black ownership under Code series 100. |
| 6.5 | Companies limited by guarantee and Non-profit Companies have no shareholding. They are not capable of evaluation of black ownership under code series 100. |
| 6.6 | Non-profit Companies and Public benefit Organisations generally do not have any beneficial ownership and are incapable of evaluation of black ownership under code series 100. This does not imply that Non-profit Companies and Public benefit Organisations sharing in the ownership of other enterprises as broad-based ownership schemes cannot contribute towards black ownership to such enterprises as provide for in Statement 100. |
| 6.7 | Whenever any of the entities listed in paragraphs one and two (in the Codes of Good Practice) require evidence of their own B-BBEE compliance, they will use the Specialized Generic scorecard. If those entities are also Qualifying Small Enterprises, they will use the specialised Qualifying Small Enterprise scorecard. |
| 6.8 | Specialised Entities that are EME under this statement are deemed to have a B-BBEE status of “level four”, having a B-BBEE recognition level of 100%. |
| 6.9 | Enhanced B-BBEE recognition level for Specialise Entities that are EME: |
| 6.9.1 | Despite paragraph 6.8 above, an EME that has at least 75% black beneficiaries qualifies for an elevation to “Level One contributor”, having a B-BBEE recognition level of 135% and |
| 6.9.2 | Despite paragraph 6.8 and 6.9.1 above, an EME that has at least 51% black beneficiaries qualifies for elevation to “Level Two Contributor”, having a B-BBEE recognition level of 125%. |
| 6.10 | An EME is only required to obtain a sworn affidavit or CIPC issued certificate annually confirming the following: |
| 6.10.1 | Annual Total Revenue/Allocated Budget/Gross Receipts of R10 million or less; and |
| 6.10.2 | Level of percentage of black beneficiaries. |
| 6.11 | Any misrepresentation in terms of number of beneficiaries and Total Revenue/ Allocated Budget /Gross Receipts for an EME and a QSE, constitutes a criminal offence as set out in the B-BBEE Act as amended. |
| 6.12 | Specialised Entities that are QSE under this statement must be measured using the Specialised Scorecard for QSEs. |
| 6.13 | Despite paragraph 6.12 above, a QSE that has at least 75% black beneficiaries automatically qualifies to an elevation to “Level One Contributor”, having a B-BBEE recognition Level of 135%. |
| 6.14 | Despite paragraph 6.12 and 6.13 above, a QSE that has at least 51% black beneficiaries automatically qualifies to an elevation to “Level Two Contributor”, having a B-BBEE recognition Level of 125%. |
| 6.15 | A QSE that has at least 51% black beneficiaries is only required to obtain a sworn affidavit annually confirming the following: |
| 6.15.1 | Annual Total Revenue/Allocated Budget /Gross Receipts of R50 million or less; and |
| 6.15.2 | Level of percentage of black beneficiaries. |
