SEESA BEE is a B-BBEE consulting agency and not an accredited verification agency. As part of our services, we advise clients on initiatives to be put in place during a specific financial period. We also assist clients in preparing a verification pack to be submitted to an accredited verification agency and guide our clients through the verification process.
Even though the planning for a BEE verification and the ultimate verification itself should be easy to reconcile, that is not always the case. Your SEESA BEE Legal Advisor will always aim to assist and prepare you to the best of their ability, but herewith some problems which has been experienced during the verification process and which can result in the planned level not being reached:
- Ownership:
Ownership is rated as a snapshot element, which means that the verification agency will rate the percentage black shareholding in the entity as at the date of verification. This means that should make your black owner exit the company before the verification takes place, it will result in you not obtaining the Ownership points.
- Management & Control:
This element is also calculated on the snapshot principle. The same principle as under Ownership thus applies. If, for instance, at the time of planning for your rating, the entity had three disabled employees, but at the date of verification, the employees are not in your employment anymore, the same points as planned for will not be awarded.
- Skills Development:
The verification agency is obliged to sample a client’s Skills Development claim. Part of this sampling includes an interview to confirm that the student did indeed receive the assistance. If the learner is not available or contactable to conclude the interview, the verification agency will not be able to award the points for that expenditure, thus, resulting in less points being awarded as planned for.
- Supplier Development, Enterprise Development and Socio-Economic Development:
As no interviews are currently required for Enterprise, Supplier or Socio-Economic Development, it should be easier to ensure that the same points as planned for are awarded for these elements. That is, however, if you have ensured that all the necessary supporting documents are in order at the time of making the contributions.
Ensure that you obtain all the documents required for verification from your Enterprise and Supplier Development beneficiaries before the scheduled verification. Without the required documentation, you will not be awarded the points for Enterprise and Supplier Development.
The above shows how important it is to not only plan your expenditure but also to keep in mind the timing of your verification and to ensure that the necessary supplementary proof is kept from the beginning. If you are uncertain about how any of the points above can influence your verification, kindly contact your BEE legal advisor.
About The Author:
Lize Bester is a Senior B-BBEE Legal Advisor at SEESA Cape Town. She is an admitted Attorney with an LLB and LLM degree, obtained from the University of Stellenbosch.
References:
Amended Codes of Good Practice issued under section 9 (1) of B-BBEE Act
No 53 of 2003 as Amended by Act No 46 of 2013[i]