visual
imperial bank terraces

Broad-based Black Economic Empowerment


Preferential Procurement Policy

Group Statement on Black Economic Empowerment

Visual International recognizes that there is a clear economic imperative to support Broad-Based Black Economic Empowerment ("B-BBEE”), as the future growth of the economy will not be sustainable if the imbalances of the past are not corrected and there is not equal opportunity and access for all to participate fully in the economy.

Visual International supports an integrated approach to B-BBEE which requires that there is focus on all aspects of the B-BBEE Scorecard which includes Preferential Procurement, Skills Development, Employment Equity, Ownesrhip, Management, Economic Development, and Socio-Economic Development.

Visual International will encourage the growth of BEE enterprises by making BEE compliant enterprises their preferred suppliers. Visual International will also prioritize entering into joint ventures with SMME and BEE enterprises throughout all divisions in the various sectors in which it operates, including the property development and related industries.

Visual International is committed to:

  • Ensuring that BEE enterprises are afforded the opportunity to compete for the provision of goods or services to Visual International
  • Ensuring that the process of appointing service providers and/or suppliers is objective and fair
  • Creating an enabling environment for the development of BEE enterprises
  • Monitoring BEE compliance of it’s suppliers and service providers in terms of its empowerment targets
  • Actively promoting and advancing BEE as a business imperative

Purpose and Scope:

  1. This policy sets out the guidelines and directives in respect of preferential procurement practices within Visual International .
  2. The purpose is to:
    1. Ensure a uniform approach to affirmative procurement within Visual International;
    2. Enable Visual International to meet its internal objectives as detailed within this policy document as well as those which may be set in terms of envisaged legislation.
  3. This policy applies throughout Visual International, and is effective from
  4. It is the responsibility of all Managers within Visual International to implement and ensure proper application of this policy and associated procedures.

Policy Statement:

  1. In procuring goods, services and consumables Visual International will strive to obtain best value for money, ensuring that open and fair practices are applied and having regard for quality and service whilst acting in a socially responsible manner in developing and supporting BEE enterprises.
  2. Visual International will seek to engage with reliable suppliers of high quality goods and services who consistently ensure timely delivery.
  3. In the event that there are benefits to consolidation of contracts for goods or services by leveraging Visual International’s purchasing strength, this will be promoted.

Preferential Procurement:

  1. It is Visual International’s policy to accelerate and maximize purchases from BEE suppliers, in line with the objective of facilitating access to all to participate in the mainstream economy.
  2. The sourcing of BEE suppliers should be approached with a positive mindset which will encourage the development of the supplier base.
  3. BEE suppliers will be required to meet the normal standards as regards quality, service levels, delivery or technical requirements.
  4. All suppliers will be required to provide their BEE credentials in the event that their annual turnover exceeds R5m per annum. This can be in the form of a BEE scorecard either in the form of a rating certificate from a suitably qualified and accredited independent third party or a self assessment on their letterhead signed by a duly authorized person.
  5. All suppliers will be required to renew their rating on an annual basis, thereby confirming their updated empowerment credentials.
  6. The guidelines and principles which accompany this policy underpins the preferential procurement process and reflect the expectations and obligations of procurement managers or buyers or others involved in procurement within Visual International.
  7. The procurement recognition levels as contained in the Codes of Good Conduct gazetted on 9 February, 2007 and contained in the table below will apply.
BEE Status Qualification BEE Procurement Recognition level
Level One Contributor ≥100 points on the Generic Scorecard 135%
Level Two Contributor ≥85 but <100 points on the Generic Scorecard 125%
Level Three Contributor ≥75 but <85 points on the Generic Scorecard 110%
Level Four Contributor ≥65 but <75 points on the Generic Scorecard 100%
Level Five Contributor ≥55 but <65 points on the Generic Scorecard 80%
Level Six Contributor ≥45 but <55 points on the Generic Scorecard 60%
Level Seven Contributor ≥40 but <45 points on the Generic Scorecard 50%
Level Eight Contributor ≥30 but <40 points on the Generic Scorecard 10%
Non-Compliant Contributor <30 points on the Generic Scorecard 0%

Objectives:

The objectives of this Preferential Procurement policy are:

  1. To promote economically and socially responsible business practice and increase access for BEE enterprises to business opportunities.
  2. To improve business relationships.
  3. To ensure the integrity, fairness and consistency of the preferential procurement process.
  4. To develop longer term contractual relationships with BEE and BEE compliant suppliers and service providers.
  5. To reduce the cost of doing business in the longer-term.

Implementation Strategies:

Key strategies include:

  1. Developing a consistent approach to procurement across Visual International, improving co-operation and co-ordination between and/or within divisions to reduce duplication and administration, thereby increasing efficiencies.
  2. Improving the procurement process by increasing the use of innovative technology.
  3. Promoting economic development and social and environmental outcomes through facilitating opportunities for BEE suppliers and encouraging enterprise and business skills development for BEE suppliers.
  4. Developing emerging suppliers and/or encouraging joint ventures between established supplier businesses and BEE enterprises.
  5. Encouraging established businesses to sub-contract to smaller BEE enterprises, during property development projects.

Targets:

The BEE expenditure targets will be assessed and recorded as a percentage of total measured procurement and will be measured on an ongoing basis, either monthly, quarterly or annually as deemed necessary by the company. The targets will be aimed at achieving an overall BEE procurement expenditure of 50% with BEE / BEE compliant.

Company Rules:

The terms and conditions of this policy have the force and effect of Company Rules. Authorization and Review:

  1. This Policy has been signed and authorized by Charles Robertson, the Chief Executive Officer on the original.
  2. The Policy will be reviewed on an annual basis or more frequently should the need arise.