BEE Verification requires a substantial amount of preparation work. This includes preparing your own BEE scorecard, collecting proof of every aspect on the BEE scorecard, communicating with the verification agency and finally receiving that certificate.
However time and thought needs to be given to this process to not only ensure it works but to ensure companies are able to comply without disrupting their business.
EconoBEE is hosting the 2nd annual Prepare for and Optimise your BEE Verification conference this July. Book early and take advantage of the early bird special which offers R5 000 in complementary empowerment tools.
|BEE Verification needs a re-look
Minister Rob Davies speaking at the NEF B-BBEE 2020 vision said that BEE Verification needed to be re-looked at and that SANAS was not well positioned to accredit agencies for BEE Verification because their skill is with laboratories and technical manufacturing and testing equipment. He said that new industries were being looked into to offer this much needed extra capacity.
Unfortunately BEE Verification has been riddled with controversy and conflict, never mind the lack of capacity. Most BEE Verification agencies are either labour lawyers or HR/Skills Consultants with very few being accounting experts. They have different interpretations and different skill sets to accountants and auditors.
EconoBEE makes a strong call to introduce the auditing profession as BEE “auditors”. The purpose of BEE Verification is to ensure that the score claimed is the correct audited BEE score. The verification process is identical to the accounting profession where at the end of every year the company approaches an auditor to ensure their accounts are correct.
Other aspects of BEE Verification directly overlap with the accounting auditors in that their BEE rating period is typically the financial year. Various elements are directly handled by the auditors including Skills Development, Preferential Procurement, Enterprise Development and Socio-economic development accounting for 55 out of 100 points.
BEE Verification is a mess. The process is filled with inconsistencies and a tremendous lack of capacity.
There are only about 35 accredited agencies, and this number is growing at about 1-2 per month. If BEE is to succeed we need far more agencies and lower prices. Once auditors start verifying, competition will ensure more efficiency, more profits for the agencies and lower prices to clients. It will also ensure a more consistent approach.
|State bodies are not applying BEE codes - analyst
By Mzwandile Jacks - Business Report
The head of a Johannesburg-based black economic empowerment (BEE) consultancy has lashed out at government departments and public enterprises, accusing them of not making an effort to comply with the broad-based BEE codes.
Keith Levenstein, the chief executive of EconoBEE, said it was not a secret that broad-based BEE had not reaped the results its developers had anticipated when they launched the BEE codes.
The BEE codes are guidelines to measure the progress of transformation. Broad-based BEE was initiated by the government in response to criticism against narrow-based BEE, which benefited few people.
"We would like to see the government and public enterprises obtaining a scorecard because it would show the government's commitment towards its own policies," Levenstein said.
"We would like to see them set the example by leading the way because it would help those organisations understand the issues involved in getting a scorecard," he added.
He said a number of government bodies did not have scorecards, namely the SA National Accreditation System, the National Empowerment Fund (NEF), the BEE Advisory Council, the Independent Communications Authority of SA (Icasa), the Commission for Conciliation, Mediation and Arbitration (CCMA), the Unemployment Insurance Fund and the National Energy Regulator of SA (Nersa).
|Keith Levenstein speaks to Tony Blewitt about the latest developments in B-BBEE - Classic FM
Keith Levenstein CEO of EconoBEE speaks to Tony Blewitt of Classic FM Entrepreneurs Network about latest developments in B-BBEE.
Listen to the interview.
While there is demand for a BBBEE Scorecard someone will be taking advantage, shouldn’t that someone be you...
|Not sure how to get a BEE Scorecard, click here to see a demonstration of how best to produce your own BEE scorecard.
Turnover below R5 million - find out how to get your BEE Exemption.
Is BEE procurement a pain? Sort it out quick and easy - click here.
02 June 2010
In this issue
- BEE Verification needs a re-look
- State bodies are not applying BEE codes - analyst
- Keith Levenstein speaks to Tony Blewitt about the latest developments in B-BBEE - Classic FM
EconoBEE is a BEE consultancy that has developed extremely effective tools to measure and implement Broad Based Black Economic Empowerment. Our services focus on the business side of BEE. Our services include EconoBEE Scorecard, BEE Scorecard Workshops, EME Pack, Document Pack, EconoLog and the 10 Step Process to BEE Compliance.
Our company supports various organisations and drives the BEE Expert Group to help maintain and develop knowledge in the BEE industry.
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