On the 8 May 2009, former minister of Trade & Industry Minister Mandisi Mpahlwa, published a notice stating that the so called self-assessments are unacceptable as evidence for verifying BEE procurement by Verification Agencies and regulated the issuing of verification certificates.
As Andile Tlhoaele, chairperson of Association of BEE Verification Agencies (ABVA) explains, “As of the 1st of August 2009, Verification Agencies (VAs) will not be allowed to accept the so called self-assessments as evidence for BEE procurement spend, and only VAs that are approved by the South African National Accreditation System (SANAS) will be allowed to issue Verification Certificates.” Verification involves assessing, verifying, and validating a company’s BEE status for compliance with the codes and a score is duly awarded and presented in the form of a Verification Certificate. The process includes an analysis of the BEE procurement spend of a company by the VA. Tlhoaele elaborates “When performing this function, a VA can only accept verifiable evidence in the form of a Verification Certificate issued by a VA which is accredited by SANAS or in possession of a valid Pre-Assessment Letter from SANAS.” Following the verification process and certification, businesses need to submit only one certificate to potential clients, business partners or for tenders. On the other side, procurement officers do not have to receive and assess reams of documents for proof of BEE status when making procurement decisions, but rather can trust that the certificate is credible. According to Tlhoaele:“Verification therefore achieves a number of advantages; it allows procurement officers to be confident and it reduces the risk of fronting or misstatement of BBBEE status.”
For more information or to find out which ABVA members can issue verification certificates, visit www.abva.co.za and click on Approved Verification Agencies.
To speak with Andile Tlhoaele, please contact Grace Kadzere at Red Flag: (011) 447 8283, grace@redflag.co.za ◊
