Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Sector Codes

Legal Sector Code, 2024

14. Measurement of LSMEs
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14.1. The provisions set out in this paragraph shall apply to the measurement of all LSMEs in terms of this LSC.

 

14.2. An ELE is only required to obtain a sworn affidavit, or a certificate issued by the CPIC on an annual basis confirming the following:
14.2.1. annual total revenue of R5 million (five million rand) or less; and
14.2.2. level of black ownership.

 

14.3. Any misrepresentation in terms of paragraph 14.2 above constitutes a criminal offence as set out in section 13O(1)(a) of the B-BBEE Act, as read with paragraph 4.7 of the Generic Codes.

 

14.4. Notwithstanding any other provision in this LSC, a black-owned QSE is only required to obtain a sworn affidavit on an annual basis confirming the following:
14.4.1.annual total revenue of between R5 million (five million rand) and R25 million (twenty-five million rand); and
14.4.2. level of black ownership.

 

14.5. Despite the provisions of paragraph 14.4, a black-owned QSE may be measured in terms of the QSE scorecard should it so choose.

 

14.6. QSEs that are not black owned must be measured in terms of the QSE scorecard.

 

14.7. Any misrepresentation in terms of paragraph 14.4 above constitutes a criminal offence as set out in section 13O(1)(a) of the B-BBEE Act as read with paragraph 5.5 of the Generic Codes.

 

14.8. Any B-BBEE verification certificate submitted by an LSME shall be deemed incomplete unless it is accompanied by a verification report that details the applicable LSME’s performance and scoring against the scorecard elements in the LSC.

 

14.9. The information relied upon for providing the B-BBEE verification certificates and reports must be accurate, correct and verifiable by means of suitable evidence.

 

14.10. B-BBEE verification certificates and reports are valid for a period of 12 (twelve) months from the date of issue.

 

14.11. The Charter Council shall use the information, data and detail provided on the B-BBEE verification certificate and reports to assess the performance of each LSME to provide accurate and reliable state-of-the-industry reports to the DTIC and the DOJ&CD.

 

14.12. No contractual obligations between the B-BBEE verification agencies and the LSMEs shall preclude the B-BBEE verification agencies from providing such information and data as the Charter Council may require from time to time for measurement and monitoring purposes provided that the Charter Council shall fully comply with the provisions of the Protection of Personal Information Act No. 4 of 2013.