FREQUENTLY ASKED QUESTIONS
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Understanding B-BBEE and the verification process
- Having women of colour across your management structure;
- Training programmes to develop the skills of your staff;
- Supply chain practices that support black-owned small to medium enterprise; and
- Socially Developmental Initiatives which display social awareness and efforts to promote inclusive growth.
Have you come across a company making use of misleadings brand names to secure business in the marketplace? This practice is one of the reasons that all companies should verify their black ownership through a B-BBEE certificate.
Exempted Micro Enterprises (EME) receive an automatic B-BBEE level without the need for a verification agency by using the DTI’s EME affidavit. The B-BBEE Status received is linked to the level of black ownership in the enterprise:
An EME may improve its B-BBEE Status through a SANAS verification in terms of the relevant QSE Scorecard to prove their higher compliance. In this case, the company will then receive a B-BBEE Certificate to use instead.
Our experience has shown that high costs of proving compliance make it harder for customers to maintain their compliance status. We, therefore, use our pricing to empower you by ensuring that you receive high value and high-quality services, no matter your turnover.
Our verification quotation is based on the following variables:
- Company turnover
- Staff Count
- Number of business locations
- Sector code scorecard to be used in the verification
Please use our Quotation Calculator in order to get a rough estimate of the costs involved.
We complete 95% of our verifications within 4 weeks – depending on the completeness of the verification file submitted.
We also offer urgent verifications, completed in just 1-2 weeks, for enterprises whose certificates are near expiry.
The B-BBEE certificate is valid for one year only.
The South African National Accreditation System (SANAS) is the institution responsible for the development and maintenance of the rating standards in terms of the B-BBEE legislative framework.
SANAS is responsible for assessing and accrediting B-BBEE verification service providers on behalf of the Department of Trade, Industry and Competition. Vision Verification is a B-BBEE Verification Agency accredited by SANAS to issue your B-BBEE Certificate.
- A B-BBEE certificate is a recognizable and verifiable overview of your enterprise. It demonstrates your alignment with the objectives of the B-BBEE Act and compliance with the Codes of Good Practice.
- This enhances your competitiveness to secure both private and public sector contracts.It can also help improve public support and goodwill of your brand, thereby increasing the social capital of your enterprise. A B-BBEE certificate can only be obtained through a B-BBEE verification by a SANAS accredited verification agency.
B-BBEE Verification looks at what has happened and determines your B-BBEE Status. B-BBEE consulting looks at what should happen next.
B-BBEE verification is an assessment of the B-BBEE compliance made following your B-BBEE Scorecard. During the verification process, we review your submissions and determine the points awarded to the efforts performed during the measurement period.
A B-BBEE consulting will then review your B-BBEE Status and assist your company in improving its level. This will involve help on the implementation of acceptable initiatives to improve your B-BBEE Status.
Fronting refers to any act that undermines or frustrates the objectives of the Act or its implementation.
Just like with bribery and corruption, fronting practices always involve two or more parties. A common fronting practice includes instances where a Black Person is given a title (such as director or shareholder) but does not get the powers associated with it such as voting rights or dividends;
There are two types of fronting offenders: those who conduct the fronting activities and those who know of the fronting and fail to report it. Liability will also fall on persons who neglected to apply their mind to the true nature of the scenarios and unintentionally assisted the fronting activities.
All verification agents, officers and state officials must understand that if they become aware of any fronting or attempted fronting, they are obligated to report it.
How does someone get convicted of fronting?
- Only a court of law can convict someone of fronting. Someone would need to lay a complaint to the B-BBEE Commission, for the Commission to then investigate the matter and refer the case to the NPA for prosecution.
- The BEE commission does not have the powers to convict. Still, it has significant powers to investigate fronting— including summoning witnesses and evidence. In addition to its investigative powers, the BEE commission can further refer their findings onwards to SARS (South African Revenue Service), SAPS (South African Police Service), and the NPA (National Prosecuting Authority) for further legal redress.
- Anyone can lay a complaint or even prepare a report for an investigation into the potential fronting. Verification agencies and procurement officers, on the other hand, have a legislative duty in terms of the Act to report fronting.
Anyone found guilty of fronting can be sent to prison and be fined.
- Individuals involved in fronting may be sentenced to both prison and a fine. The prison sentence can be for up to ten years, and there is no limit to the fine.
- The companies involved in fronting may be fined up to 10% of annual turnover.
- Verification agents, procurement officers and public servants who fail to report fronting may face both prison and a fine. The prison sentence can be for up to one year, and there is no limit to the fine.
- Further, the guilty party will not be able to deal with Government and Organs of State for a period of ten years from conviction. This ban on public sector business extends to both the shareholders and directors of the convicted enterprise.
Feel free to submit a question