Even more B-BBEE nonsense

This is what I wrote a few days back, I've unpublished it because there's even more!

They now say that an Exempted Micro-Enterprise is not a Measured Entity and that therefore it was not allowed to adopt the new Codes ahead of 1 May 2015 and that therefore any certificates issued to an EME under the new Codes and prior to that date are invalid.

Now this is what the Codes say

3.2 The basis for measuring the B-BBEE compliance of an Entity in terms of paragraph 3.1 is:

3.2.1 Paragraph 4, in the case of an Exempted Micro-Enterprise;

3.2.2 The Generic Scorecard and the QSE Scorecard, in the case of other Measured Entities (my italics)

Doesn't this confirm that an EME is, in fact, a Measured Entity?

That's not all. The IRBA then goes on to say that because the Codes together with a subsequent Government Gazette say

4.5 An EME is only required to obtain a sworn affidavit or Certificate issued by the Companies and Intellectual Property Commission (CIPC). (my italics again)

then no-one but the Companies and Intellectual Property Commission is allowed to issue a certificate (including B-BBEE approved auditors), despite our being qualified to issue certificates for all higher levels of Measured Entity.

Now visit the DTI Website (the ultimate authority on B-BBEE) and this is what you will find -

  • Micro Enterprises

            "These are applicants with an annual turnover/projected annual turnover of R10m and below. These applicants are exempted and just need to provide an exemption certificate from an accredited BEE verification agency." (the IRBA is the principle such agency as SANAS is being phased out)

Is the world going mad or am I?

So, until someone comes to their senses, we will now issue certificates as Chartered Accountants.

You can, however, check that we are IRBA approved by visiting their website,

Now, just as a matter of interest, Google "BEE certificates". Click on some of the websites that offer them. Prices vary from R180 upwards (we charge R700). These self-claimed professionals are as muddled as are the codes themselves. If you want good, professional advice, skip the outdated sites (if you can't change your site to recognise the new codes, you don't deserve to be in business), skip the sites that offer you practically nothing for practically nothing, go to the consultants www.econobee.co.za . We have no connection with them, except the occasional meeting to discuss policy and principles. They take this business seriously. The other one is www.econobee.co.za who have a great system for preparing you for audit. They are not consultants and no longer issue EME and black qualifying QSE certificates through accredited agencies because of the above rubbish, but their scoring system is great.

When it comes to EME and black owned QSE certificates, come to us. We also take these matters seriously.

We will all have to wait and see how this madness settles down (if it ever does with Rob Davies in the driving seat of the DTI).

Now here's the latest - I received the following email from the IRBA in repsonse to my suggestion that they obtain legal opinion -

Dear Mr Springett,

We have obtained clarity regarding this requirement from the DTI. The other regulator SANAS has also been given the same advice by the DTI. No verification professional is allowed to issue a certificate – if you do so – your client would have paid for something that is invalid and will be rejected as invalid.

Kind regards

Ashika

Ashika Mohan

CA(SA), Registered Auditor

Professional Manager: B-BBEE

Despite my view that the DTI and certainly the IRBA have no authority to make statements of this nature except via the Government Gazette, I persued the matter by visiting the DTI website to see if I could obtain a B-BBEE certificate. Not a mention!

So then I tried CIPC which falls under the DTI and clicked all over the place. Finally, by entering BEE cetificate in their search facility, I found this gem -

The new service (which evidently came into effect on 14 August 2015) will enable CIPC customers who are registering private companies through the terminals to also apply for B-BBEE certificates at the end of the company registration transaction or when they file their CIPC annual returns. Through this process, the B-BBEE certificates will be issued for free (sic) to registrants.

I dug through the many companies of which I am a director and found one whose Annual Return was due. I submitted the Annual Return, but was given no option to apply for a B-BBEE certificate.

Cry the beloved country!

So, where to from here?

We will send our clients an affidavit for signature and return to us as Commissioners of Oaths, this will be at our normal charge (currently R700). Once it is returned, we will sign it and stamp it, then send it, along with a free certificate issued as a CA(SA) and a copy of the above email from the iRBA. The client can then submit any or all to their customers.

Best of luck you guys!


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