rating agencies vs self rating
23 August 2007

Rating agencies are scrambling to get their name taken off the radar. Consultants have been analysing and even political parties have got involved to help companies with the cheapest, quickest and easiest way to becoming BEE Compliant. I even know of some companies who are suing rating agencies for anti-competitive business practices and various class action lawsuits.

The Dti BEE Codes of Good Practice does not make BEE verification mandatory. Officially a self rating is perfectly acceptable. As long as a company has accurate data then it must be accepted by clients. In any event it is detrimental to any companies scorecard to eliminate half of their suppliers as non compliant when they are in fact compliant and have done the work to produce and improve on their BEE Scorecard.

At this moment some rating agencies are trying to get more business by telling companies that only an accredited scorecard is acceptable. Please don't be fooled by this, it is not true!!! SANAS the accrediting body has also not finalised the accreditation process. SANAS estimated that they would be ready to accredit agencies before the end of this year.

If you do come across any companies or rating agencies who are preventing you from submitting a self rating or similar documentation please contact us.

In a future newsletter we will give you some guidelines to follow when dealing with a rating agency. This will assist you in making the best decision and hopefully choose a more reputable rating agency.

Keith and the EconoBEE Team
EconoBEE Newsletter August 2007