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ENSURING ACCURACY IN B-BBEE VERIFICATION: THE ROLE OF R47 AND MEASURED ENTITIES

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.

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