Our frequently asked questions have been created with our clients in mind and done in such a way that it makes understanding the in’s and out’s of B-BBEE easy.

Our frequently asked questions have
been created with our clients in
mind and done in such a way that it makes understanding the in’s and out’s of
B-BBEE easy.

Our frequently asked questions have been created with our clients in mind and done in such a way that it makes understanding the in’s and out’s of B-BBEE easy.

Browse our range of frequently asked questions pertaining to B-BBEE verification and certification.

B-BBEE verification demonstrates your alignment with South Africa’s  B-BBEE objectives. It assists in improving goodwill and public relations with your business and assists with increasing your social capital. In turn, this will enhance your competitiveness to secure both private and public sector contracts.

Once B-BBEE verification is complete, you will be provided a B-BBEE certificate and this can only be obtained through a SANAS accredited B-BBEE verification agency such as Vision Verification.

Receiving a SANAS accredited B-BBEE certificate at the end of the B-BBEE verification process will provide accurate, verifiable and recognisable proof that your business is fully black-owned and is actively transforming the South African economy through its empowerment efforts.

Once B-BBEE verification is complete, fantastic opportunities exist for those businesses that support economic transformation in South Africa. Upon completion, receiving your B-BBEE certificate then demonstrates that your business is carrying out other initiatives that have a direct and positive result on the growth and transformation of your business, for example:

1. Having women of colour across your management structure
2. Training programmes that enable you to develop the skills of your staff
3. Supply chain practices that support black-owned small to medium enterprises
4. Socially developmental initiatives that display social awareness and efforts to promote inclusive growth                                                                                                                                                                                                                      

Exempted Micro Enterprises (also known as EME’s)  receive automatic B-BBEE verification without the need for a SANAS accredited B-BBEE verification agency by using DTI’s EME affidavit. The B-BBEE status received is linked to the level of black ownership within the enterprise.

An EME may improve its B-BBEE rating through a SANAS accredited B-BBEE verification agency in terms of the relevant QSE scorecard to prove their higher compliance. Once this is done, the company will then receive a B-BBEE certificate to use instead.                                                                                                                             

As B-BBEE verification experts, our experience has shown that high costs of proving compliance make it more difficult for clients to maintain their compliance status.

 

The B-BBEE certificate that you would receive at the end of the B-BBEE verification process is only valid for one year, thus you would need to complete the B-BBEE verification process once every 12 months.

The South African National Accreditation System (SANAS) is the institution responsible for the development and maintenance of the rating standards in terms of the B-BBEE legislative framework.

SANAS is responsible for assessing and accrediting B-BBEE verification service providers – such as Vision Verification –  on behalf of the Department of Trade, Industry and Competition.

Vision Verification is a B-BBEE verification agency that has been accredited by SANAS to issue your B-BBEE certificate at the end of our four phase B-BBEE verification process.

A B-BBEE certificate – received at the end of the B-BBEE verification process – is a recognisable and verifiable overview of your enterprise. It demonstrates your businesses alignment with the objectives stipulated in the B-BBEE Act and compliance with the Codes of Good Practice.

The B-BBEE verification process and the receival of your B-BBEE certificate enhances your competitiveness to secure both private and public sector contracts. It can also help to improve public support and goodwill of your brand and business which in turn will increase the social capital of your business. A B-BBEE certificate can only be obtained through a B-BBEE verification process that is done by a SANAS accredited B-BBEE verification agency.

B-BBEE verification looks at what has happened to date within your business and determines your B-BBEE status. B-BBEE consulting looks at what should happen next within your business.

B-BBEE verification is an assessment of the B-BBEE compliance that is made following your B-BBEE scorecard. During the B-BBEE verification process, we review your submissions and determine the points awarded to the efforts performed during the measurement period stipulated.

A B-BBEE consultation or consulting process then entails a review of your B-BBEE status and thereafter assists your business in improving its B-BBEE rating level. This involves assistance with the implementation of acceptable initiatives to improve your B-BBEE status.

Fronting refers to any act that undermines or frustrates the objectives of the Act or its implementation. Just like that of bribery and corruption, fronting practices always involve two or more parties,

A common fronting practice includes instances where a black person is given a title within a business or corporate but does not get the powers associated with said title.

There are two types of fronting offenders: those who conduct the fronting activities themselves and those who know of the fronting and fail to report it. Liability will also fall on persons who neglected to apply their mind to the true nature of the scenarios and unintentionally assisted the fronting activities.

It is imperative that all B-BBEE verification agents, officers and state officials understand that if they become aware of any fronting or attempted fronting, they are obligated to report it.

How does someone get convicted of fronting?

Only a court of law can convict someone of fronting. There would need to be a complaint submitted to the B-BBEE commission in order for the commission to then investigate the matter and refer the case to the NPA for prosecution.

The B-BBEE commission does not have the powers to convict, however, it does have significant powers to investigate fronting – including summoning witnesses and evidence. In addition to its investigative powers, the B-BBEE commission can further refer their findings onwards to SARS (the South African Revenue Service), SAPS (the South African Police Service), and the NPA (the National Prosecuting Authority) for further legal redress.

Anyone can lay a complaint or even prepare a report for an investigation into the potential fronting. Verification agencies and procurement officers on the other hand, have a legislative duty in terms of the Act to report fronting.

Anyone found guilty of fronting can be sent to prison and be fined. A prison sentence can be issued for up to ten years and there is no limit to the fine they may receive.

Companies involved in fronting may be fined up to 10% of their annual turnover.

Verification agents, procurement officers and public servants who fail to report fronting may face both prison and a fine. Said prison sentence can be for up to one year and there is no limit to the fine that they receive.

Further to the above, the guilty party will not be able to deal with the government and Organs of State for a period of ten years from conviction. This ban on public sector businesses extends to both the shareholders and directors of the convicted business.

Get in touch

Call: 031 312 9551
Email: info@visionverification.co.za

2nd floor, 534 Peter Mokaba Ridge, Overport, Durban, 4091

Business Hours
Monday - Friday | 8:00am - 4:30pm

Get in touch

Call: 031 312 9551
Email: info@visionverification.co.za

2nd floor, 534 Peter Mokaba Ridge, Overport, Durban, 4091

Business Hours
Monday - Friday | 8:00am - 4:30pm