Proactive management of BBBEE verification certificates and sworn affidavits

The BEE Chamber, a leading authority in BBBEE (broad-based black economic empowerment) compliance, highlights the critical importance of efficiently managing BBBEE verification certificates and sworn affidavits to maximise BBBEE scores and meet procurement targets.

Bridget Themba, certificate services manager at The BEE Chamber, emphasises the challenges faced by organisations in collecting and updating essential BBBEE documentation.

In the realm of BBBEE compliance, the collection of BBBEE verification certificates, Companies and Intellectual Property Commission Exempted Micro Enterprise (CIPC EME) BBBEE verifications (BBBEE statuses), and sworn affidavits is a demanding task that requires resources, patience and meticulous follow-up.

Themba underscores the significance of each valid BBBEE status in contributing to an entity’s overall scorecard and meeting procurement objectives. “One of the primary obstacles hindering efficient collection rates is the lack of awareness among suppliers regarding the importance of updating their BBBEE statuses, particularly those required to provide a sworn affidavit,” she says. “It is crucial for measured entities to educate their supply chains on the necessity of regularly updating and submitting BBBEE documentation.”

The challenges extend beyond supplier awareness to encompass issues such as delayed submissions, inaccuracies in sworn affidavits, suppliers measured on the incorrect scorecard, and unexpected changes in supplier information. Effective planning and timely action are imperative to streamline the BBBEE verification process and ensure accurate and prompt collection of BBBEE statuses.

Themba emphasises the importance of setting realistic timelines and managing expectations to facilitate the seamless collection of BBBEE statuses. “By establishing robust supplier application processes and educating suppliers on compliance requirements, measured entities can enhance their chances of successfully collecting updated BBBEE statuses,” she affirms.

Furthermore, The BEE Chamber underscores the critical role of valid BBBEE statuses in the verification process. Organisations are urged to adhere to the BBBEE Commission’s Practice Guide and other legislative requirements to ensure the authenticity and accuracy of BBBEE verification certificates, sworn affidavits and CIPC EME BBBEE verifications.

To determine the validity of a BBBEE status, specific criteria must be met – such as comprehensive completion of sworn affidavits, accurate representation of ownership percentages, and adherence to regulatory guidelines etc.

In terms of BBBEE verification certificates, Themba sheds light on the requirements for technical signatories who are employed by a South African National Accreditation System (SANAS) accredited BBBEE rating agency, emphasising the importance of accreditation and proficiency in BBBEE legislation and compliance standards:

• Not every person employed at a BBBEE rating agency qualifies as a technical signatory.
• A technical signatory must not only be declared competent by the BBBEE rating agency they represent, but must have completed the BBBEE Management Development Programme through Unisa or Wits.
• A technical signatory is assessed by SANAS, whereby the latter confirms the competence of the individual.
• A critical part of the technical signatory criteria is that they are fully versed on all sets of BBBEE Codes for which the BBBEE rating agency they represent is accredited to perform.
• Notably, a proficient technical signatory will be versed on and align with the policies and procedures of the BBBEE rating agency they represent, as well as the SANAS requirements relating to accreditation and compliance. Only then will a person be acknowledged as a technical signatory, which allows them to publish their name on the accreditation schedule of the BBBEE rating agency they represent.
• To authenticate a BBBEE certificate, a technical signatory must sign it off before issuing it.

As organisations navigate the complexities of BBBEE compliance, The BEE Chamber remains committed to providing guidance and support in managing BBBEE statuses effectively and encouraging measured entities to prioritise proactive measures to enhance compliance, drive transformation and achieve sustainable business growth.