Common use of BLACK ECONOMIC EMPOWERMENT Clause in Contracts

BLACK ECONOMIC EMPOWERMENT. 5.1. The Post Office promotes the objects of the Broad-based Black Economic Empowerment Act No. 53 of 2003, as amended from time to time, (“BEE”) and has developed a procurement policy and strategy in terms of which the Supplier or Service Provider shall be required at all times to comply with and be subject to. 5.2. The Supplier and/or Service Provider acknowledges that it has correctly and truthfully reflected its BEE qualifications from part B to E of the Supplier Registration Form. 5.3. The Supplier or Service Provider acknowledges that the Post Offices shall not allow any sort of fronting and that any conduct, which is similar to fronting by the Supplier or Service Provider shall be investigated by the Post Office. If the Post Office’s investigation reveals that the Supplier of Service Provider is fronting, the Post Office shall take the necessary legal measures against the Supplier or Service Provider. 5.4. In the event that the Service Provider is a joint venture, the joint venture must comply with the following requirements: 5.4.1. an approved contractual relationship must be established between the BEE party and the non BEE party, e.g. a corporatised joint venture is established. 5.4.2. the BEE’s party’s management in the joint venture must be proportional to the BEE’s participation in the joint venture. 5.4.3. the BEE party must provide the Services with its own resources; 5.4.4. the BEE’s party’s shares in the potential benefits and the potential risks inherent in the contract must be proportional to their participation in the joint venture; and 5.4.5. BEE supplier participates to an extent of 40% of the Contract Price. 5.5. The Post Office reserves the right to complete a due diligence exercise on the Supplier or Service Provider to determine compliance of the BEE component and make the necessary recommendation in the event of any non-compliance. 5.6. The Service Provider shall comply with the terms and conditions of the Post Office’s BEE policy, which is available upon written request by the Service Provider to the Post Office.