The B-BBEE verification process is crucial for South African businesses seeking to demonstrate their commitment to transformation. Regulation 47 (R47) of the B-BBEE Codes of Good Practice plays a key role in ensuring the accuracy and consistency of this process.
What is R47 and what does it do?
Provides clear guidelines for verification professionals on what aspects of a business they must scrutinize during B-BBEE verification.
Ensures consistency in assessing compliance across different companies undergoing verification.
Responsibilities of Verification Professionals:
Review evidence provided by the measured entity (the business being verified) to verify compliance with various B-BBEE elements, including:
· Ownership structures and management control
· Employment equity
· Skills development initiatives
· Preferential procurement
· Socioeconomic development contributions
Responsibilities of Measured Entities:
Have the primary burden of proof, meaning they must provide documentation and evidence to support their B-BBEE claims.
This evidence may include financial records, ownership structures, employment equity plans, skills development initiatives, and other relevant information.
Verification Process:
The verification agency will review the evidence provided by the measured entity to assess their compliance with B-BBEE requirements.
Failure to provide sufficient evidence may result in an unfavourable B-BBEE rating.
In Conclusion:
R47 ensures a rigorous and consistent B-BBEE verification process by outlining the responsibilities of both verification professionals and measured entities. Businesses seeking a positive B-BBEE rating should be well-prepared to present clear and comprehensive evidence to support their compliance efforts.