A TECHNICAL SIGNATORY DOES NOT ROLL THE DICE

The last step to issuing a valid B-BBEE Verification Certificate (B-BBEE Certificate) is the

process of a Technical Signatory (TS) signing it off. The role and responsibility of a TS

are to confirm the evidence presented by an organisation through a Verification Analyst

during a B-BBEE Verification. The responsibility lies with them to ensure that a B-BBEE

Verification is indeed accurate and in line with the Code on which an organisation is

measured.

A verification team consists of one or more Verification Analysts and a TS. During a

B-BBEE Verification, an organisation rarely engages with the TS. The Verification Analysts

are the face of a B-BBEE Verification, as they conduct site visits physically or remotely

- as per the current SANAS provision - inspect evidence and conduct interviews.

Verification Analysts are the client-facing representatives who address issues as they

arise and ensure sufficient and appropriate evidence is presented to substantiate all

B-BBEE claims made by an organisation.

Only a TS may sign off a B-BBEE Certificate. Each B-BBEE Rating

Agency has one or more technical signatories who are ultimately

responsible for the findings and verification data that are used to

issue a B-BBEE Certificate.

The onus is on a TS to confirm that sufficient and appropriate

evidence was accepted by the Verification Analyst and that all

verification procedures have been adhered to during the B-BBEE

Verification process.

A B-BBEE Certificate is not valid unless a qualified TS has signed it

off. Such a person’s name appears on a B-BBEE Rating Agency’s

Scope of Accreditation which features on the SANAS website1

.

What is the role of a TS on a B-BBEE

Verification Team?

Following the confirmation of an organisation’s verification date,

the TS allocated to that specific verification team reviews its

B-BBEE verification file. The TS role is to assess and interpret

data, then analyse samples provided by a Verification Analyst

during the verification process, based on the Code on which an

organisation is measured. They are then either comfortable with

the Verification Analyst’s findings and issue a B-BBEE Certificate;

otherwise they request further evidence to substantiate claims

to ensure alignment with the Code on which an organisation is

measured.

It is the responsibility of a TS to ensure that Verification Analysts

follow all procedures in line with the Verification Manual published

by the Department of Trade Industry & Competition and the R47-

03 published by SANAS. The verification team must conduct a

B-BBEE Verification in line with the Verification Methodology of the

B-BBEE Rating Agency they represent. Only once a TS is satisfied

that the score achieved by an organisation is fairly represented,

based on sufficient and appropriate supporting evidence, will they

sign off on a B-BBEE Certificate.

What qualifies a person to be a TS?

Not every person employed at a B-BBEE Rating Agency qualifies

to be a TS. A person undertaking the role must not only be

declared competent by the B-BBEE Rating Agency they represent,

but must have completed the B-BBEE Management Development

Programme through UNISA or Wits.

SANAS assess a TS, whereby they confirm the competence of

the individual. A TS must be fully versed on all sets of Codes for

which the B-BBEE Rating Agency they represent is accredited

to perform. Notably, a proficient TS will be versed in and align

with the policies and procedures of the B-BBEE Rating Agency

they represent, as well as the SANAS requirements relating

to accreditation and compliance. Only then will a person be

acknowledged as a TS.

What are the core roles and responsibilities

of a TS within the structure of a B-BBEE

Rating Agency?

> Compliance with SANAS accreditation requirements;

> Compliance with the B-BBEE Act, Verification Manual and

relevant Codes or Sector Code;

> Compliance with the internal policies and procedures

approved by the B-BBEE Rating Agency they represent;

> Sign and issue B-BBEE Certificates;

> Quality control of B-BBEE verification files; and

> Internal training of Verification Analysts.

What are the consequences if a TS is not

recognised as a competent person?

Since the first publication of the Codes of Good Practice in 2007,

there have been many schemes intended to by-pass the B-BBEE

Verification process by competent teams. One such scheme

includes the signing off of a B-BBEE Certificate by a person that is

not a TS.

An example: for years, a fake TS named ‘Simon du Toit’ has

presented himself as a TS at a B-BBEE Rating Agency in good

standing in the B-BBEE space. However, he was never employed

at that agency, and there is no record of him completing the

B-BBEE Management Development Programme through UNISA

or Wits.

The consequence for organisations that have a B-BBEE Certificate

signed off by the elusive ‘Simon du Toit’, or others like him, is

that they are trading with an invalid B-BBEE Certificate, as it is

fake. Subsequently, such fake B-BBEE Certificates mean that any

procurement spend based on that certificate may not be accepted

as a claim.

Organisations must refer to the scope of accreditation on the

SANAS website to ensure that the TS who signed their certificate

represents the B-BBEE Rating Agency they are paying to perform

a B-BBEE Verification.

What are the risk areas for a TS?

> If a client purposely claims when they are aware the evidence

is not credible, but the Verification Analyst does not sample

this evidence.

> Discovering Fronting Practices during a B-BBEE Verification,

as a TS has an obligation to report such indiscretions to the

B-BBEE Commission.

> If SANAS, during its annual audit, picks up an issue with a

sample used in a specific element.

> Discovering that a person representing the B-BBEE Rating

Agency did not disclose a prior working relationship with a

client within the restraint period.

> Suppose that an initiative has been incorrectly accepted as valid by both the Verification Analyst and TS. In this case, there is a possibility that

a B-BBEE Rating Agency would have to revert to all B-BBEE Certificates issued where the B-BBEE Rating Agency applied that specific

principle or interpretation. The implications of this are far-reaching, as all such B-BBEE Certificates issued under that specific principle or

interpretation would have to be updated and reissued.

How did amendments to conducting a B-BBEE Verification during 2020 impact the B-BBEE Verification

landscape and the role of a TS?

What factors must be taken into account when choosing a B-BBEE Rating Agency?

When sourcing the services of a B-BBEE Rating Agency, do due diligence. Choose a B-BBEE Rating Agency that has

the experience and solid references within the relevant sector. An organisation is within its rights to request versed and

experienced Verification Analysts and request a Curriculum Vitae of the Verification Team members allocated to their B-BBEE

Verification. In line with the R47-03, it is imperative during the vetting process to confirm that the agency or any employee has

not provided any advisory services in the previous four years.

An organisation’s B-BBEE Verification file must be easy for a Verification Analyst and a TS to navigate. Tips

for ensuring a smooth B-BBEE Verification include, but are not limited to:

> Do not lump claims together, for example:

o Skills Development – refrain from combining total costs relating to one intervention; file evidence

separately in terms of course fees, accommodation and travel.

o Enterprise & Supplier Development – refrain from combining claims such as discounted rent,

discounts on services rendered, grant contributions and loans.

The recognition and evidence requirements for each of these claims must be categorised individually and

kept separately.

> Do not claim for unsubstantiated initiatives.

> Collect records and ensure that record-keeping is done consistently throughout the year.

> Have a good understanding of the B-BBEE Act and relevant Code, as well as what evidence

substantiates the various claims.

> Produce evidence to back up claims. It is better to do this whilst implementing the initiative for a claim

rather than collating this during a B-BBEE Verification.

> Obtain the most recent B-BBEE Certificate or Affidavit for all suppliers before the verification date.

> Do not include unnecessary documents in the B-BBEE verification file.

o Payment requisitions are not acceptable evidence as proof of payment. They should not be

included in the B-BBEE verification file unless the requisition is a reconciliation between the invoice

and proof of payment.

o There is no need to submit Skills Development attendance registers for the full year if a certificate

of attendance was issued.

> All evidence must be clearly indexed.

> All documents must be filed per element, then broken down per claim;

> Ensure the procurement data accounts for the inclusion and exclusion principles that differ from those

contained in the IFRS financial standards.

> Clearly label and categorise soft copy evidence for easy reference purposes. Using Skills Development

as an example, include the Beneficiary’s name, the training initiative and, where possible, the

supplier used.

o “K_Nkosi_Health_&_Safety_training_Invoice XXX”

o If evidence for one claim is combined in a single evidence pack: “K_Nkosi_Health_&_Safety_

training_-_Certified_ID_EEA1_Dr_confirmation_of_ disability_invoice_attendance_register_proof of

payment.”

> If including one Beneficiary in both a Management Control and Skills Development claim, have a copy

of their certified identity document or card and EEA1s under both sections.

> Schedule timeslots per element for engaging with the Verification Analyst.

> Schedule timeslots with relevant individuals for interviews. Ensure that Beneficiaries have the

infrastructure to participate in an interview. Be clear that the interviews are to verify a B-BBEE claim

and that no preparation is necessary.

> Ensure there is a copy of the verification schedule and/or plan before the date of verification.

> Conduct a post-mortem following a B-BBEE Verification, which will assist with identifying shortfalls.