In terms of the Codes of Good Practice and related Broad-Based Black Economic Empowerment legislation, affected business entities are required to be measured in terms of their BEE status. This measurement is based on scoring BEE points on seven different elements, one of which is Preferential Procurement. In order to score points for procurement, organizations must acquire a proportion of the total annual value of their products and services from suppliers that are BEE compliant. Procurement from small businesses with annual turnovers of R5 million or below, termed EME’s (Exempt Micro-Enterprises) are exempted from the process of having to become BEE compliant, and are given an automatic Level 4 status (Score category of 65% to 75%) or better, depending on the level of black shareholding. EME’s are required to have their turnover status independently verified on an annual basis in order to qualify, and they must therefore also be included on the ProcureActiv system together with other suppliers.
ProcureActiv was designed as a platform where different organizations can capture their BEE related supplier information on a central database, thereby sharing information, and having the benefit of extracting management reports and Scorecard data. As part of the process of uploading and maintaining information on the system, individual suppliers may, at the request of a client, be asked to access the system via random access user and password codes, and to update their information.