bee implementation thrown into disarray
03 September 2008

During the transitional period companies that had not made any progress in the implementation of Broad Based BEE were able to rely only on the narrow based elements of Ownership and Management Control in deriving their B-BBEE scorecards, but with effect from 1 Sep 2008 companies are required to use the Generic or QSE scorecards for measurement.  This milestone event is however overshadowed by government’s failure to approve accredited verification agencies that are responsible for measuring the implementation of the Codes of Good Practice, some 19 months after the implementation of the Codes of Good Practice.

Accreditation of Verification Agencies is the responsibility of the South African National Accreditation System (SANAS) who unilaterally suspended the accreditation of verification agencies on 28 July 2008, and have yet to provide anyone with the reason for the suspension.  The suspension of the accreditation process has not only negatively impacted on the business of verification agencies and the growth of our economy, but has seriously put in doubt the implementation ability of B-BBEE by our government.

In the absence of any other objective standard, membership of the Association of BEE Verification Agencies (ABVA) has emerged as the only indicator of credibility in a market place urgently seeking direction.  Full ABVA members are members that have applied to be accredited and in so doing have committed themselves to compliance with the R47-02 standard for implementation by Verification Agencies, implementation of the methodologies for measurement of B-BBEE compliance, and a code of conduct prescribed by ABVA.

In an effort to assist in the final approval and accreditation of verification agencies, ABVA has met repeatedly with the DTI with whom they enjoy a close working relationship.  A meeting with Mike Peet, the CEO of SANAS has been requested to discuss the reasons for the suspension and to explore ways in which ABVA can assist in ensuring continuation of the accreditation process   In addition, ABVA has made a proposal to the BEE unit at the DTI, which if implemented will provide a workable solution for immediate approval of verification agencies and on-going assessment of their standard.

ABVA hopes to escalate the proposal to the DG for consideration within a few weeks.  The transformation of the South African business sector has been earmarked as a priority for government, and the on-going delays from SANAS in the accreditation process are therefore not simply damaging the verification industry, but South African business at large. ABVA urgently calls upon SANAS to issue a full statement as to the cause of the latest delays and to an issuing of a time-table for the process to which they will be held accountable.

Until the DTI approve accredited verification agencies, ABVA provides the only source of credibility. A list of full ABVA members who have applied to SANAS for accreditation, are adhering to the approved methodology, and who are also subject to the ABVA code of conduct is available on www.abva.co.za. Businesses should not delay securing their updated B-BBEE verification while approval and accreditation takes place. ABVA will continue to update the media and business communities with regards to this on-going process.

Released by ABVA,  Click here