BEE verification industry forms its own watchdog 
10 July 2007

Black economic empowerment (BEE) verification companies have formed an industry governing body. The Association of BEE Verifications Agencies (Abva) has been formally recognised by the department of trade and industry.

Ridwana Yusuf-Jooma, an Abva board member, said the broad-based BEE codes of good practice, promulgated by trade and industry minister Mandisa Mpahlwa in February, were already having a marked effect on the local business landscape.

"There are no inspectors policing the BEE status of enterprises, but potential business opportunities in both the public and private sector will be influenced by it," she said. "Many businesses, therefore, are beginning the process of securing their scorecards and official ratings certificates."

Yusuf-Jooma said Abva would provide a valuable resource for businesses that were overwhelmed by the need to secure their BEE ratings, as it would help them find legitimate verification agencies.

Theo Botha, the chairman of Abva's board of governors, said the association's technical and disciplinary committees would ensure that members abided by its code of conduct. "Abva is playing an instrumental role in establishing the norms and accepted practices to ensure the integrity and viability of this newly emerging industry," he said.
Botha said BEE verification agencies would be accredited not by Abva but by the SA National Accreditation System (Sanas), which gives formal recognition to laboratories, certification and inspection bodies, and proficiency testing scheme providers.

He said Abva already had 41 full members - which had applied to Sanas for accreditation - and 25 associate members, which would get full membership once they had applied to Sanas as well. Abva would be funded from membership fees, not by the government.

Peter Vundla, the chairman of the presidential black business working group, welcomed self-regulation within the industry, but felt that this should be done by the department of trade and industry. If BEE verification agencies "regulate themselves, they may bring the industry into disrepute", said Vundla.

Wiseman Khuzwayo, www.busrep.co.za