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The R47-03 Intends to instil Confidence in the B-BBEE Verification Process




The R47-03 Intends to instil Confidence in the B-BBEE Verification Process

Nevertheless, the amendments do mean that the client will be

the point of reference when resolving matters and will remain

accountable for the evidence presented during a B-BBEE

Verification. Such accountability necessitates a new level of internal

competence in organisations to ensure they are aware of and

fully understand the implications involved in presenting evidence

and the subsequent risk to their employees that feed the B-BBEE

information chain.

As organisations are ultimately responsible for the results featuring

on their B-BBEE Scorecard, it is essential that ‘Knowing People’

or those that feed into a B-BBEE Strategy are aware of the

expectations outlined in the R47-03. SANAS acts on behalf of

the dtic in accrediting B-BBEE Rating Agencies. B-BBEE Rating

Agencies may not issue B-BBEE Certificates on any Code without

accreditation from SANAS. Each Code or Sector Code requires a

separate application and assessment for accreditation.

The principles outlined in the R47-03 are fundamental, as opposed

to prescriptive, which means that they do not provide a solution

for every situation that reveals itself. Hence the principles outlined

must be applied as a guide for ethical decisions when a case

reveals itself. Where this is an interpretive issue, all parties must

defer to the B-BBEE Commission, which is the only office with the

power to provide interpretation on B-BBEE legislation. The overall

aim of verifying is to provide all parties with the confidence that

they can rely on the results of a B-BBEE Verification. Therefore,

the validity of a B-BBEE Certificate presented is received based on

trust by:

> Organisations that are the clients of the B-BBEE Rating


> The customers of the B-BBEE Verified organisation;

> Government authorities;

> Non-government authorities;

> Consumers and members of the public; and

> Public entities.

The guiding principles that instil confidence that a B-BBEE

Certificate is indeed accurate with no conflict of interest include

impartiality, competence, responsibility, confidentiality, openness,

resolution of any complaints or appeals submitted as part of a

verification process, as well as ethical and professional behaviour.

The R47-03 amends definitions of role players in the

B-BBEE Arena

‘Consultancy’ generally referred to as B-BBEE Consultant.

> ‘Consultancy’ means the provision of any service that

assists an organisation in implementing a B-BBEE Strategy

or any element of their scorecard. These services include

the implementation thereof without limitation to Ownership,

Management Control, Skills Development, Enterprise and

Supplier Development and Socio-Economic Development;

otherwise any element prescribed in terms of a Sector Code.

With reference to the avoidance of conflicts of interest, any

service of a consulting body or consultancy performed by any

personnel of a B-BBEE Rating Agency that has provided a

service to an organisation, and the same organisation is

verified by a B-BBEE Rating Agency, would be considered a

contravention of the requirements of this document.

Consultancy includes, but is not limited to, specific solutions

and then assisting an organisation with implementing the

proposed solutions.

Examples of the services a ‘consultant’ can provide include, but

are not limited to:

> Coaching or facilitating the B-BBEE process on behalf of an

organisation towards the development and implementation of

activities leading to B-BBEE compliance;

> Preparing or producing manuals, handbooks or procedures;

> Participating in the decision-making process regarding the

management system;

> Providing specific advice or scenarios for developing and

implementing a management system in preparation for

verification; and

> Conducting a Scenario Plan or a Gap Analysis.

The amendment to the definition of ‘consultancy’ limits the

services a B-BBEE Rating Agency can offer its clients. As we

advance only a ‘consultant’, otherwise known as a B-BBEE

Consultant, can provide a Gap Analysis or conduct a Scenario

Plan. If a B-BBEE Rating Agency provides consulting services to

a client, it may not perform the B-BBEE Verification for the same

client. In line with the amendments, a B-BBEE Rating Agency may

render the following services to its clients.

> Verification, including information and planning meetings,

the examination of documents, as well as following up of


> Not harass, threaten or coerce any participant to persuade

or sway votes. Such behaviour does not preclude

professional, respectful debate and exchange of views that

contains information and/or presents perspectives intended

to persuade other participants to lend their support or

opposition to issues, to name but a few.

Essentially, a B-BBEE Rating Agency must strike an appropriate

balance between the principles of openness and confidentiality,

including a speedy resolution of complaints, if and when

necessary, to demonstrate integrity and credibility.

The R47-03 provides clarity about what information and results

thereof should appear on a B-BBEE Certificate. Subsequently, the

amendments require additional information that must appear on

B-BBEE Certificates issued from 7th October 2020.

Each issued B-BBEE Certificate must feature a B-BBEE Rating

Agency’s unique accreditation number and include the SANAS

accreditation symbol. In terms of the amendments contained in

the R47-03 document, a B-BBEE Certificate must contain the

following additional information from the date the requirements

became effective:

> The score per element including the totals for each;

> ‘Black’ Ownership percentage;

> ‘Black’ Woman Ownership percentage;

> ‘Black’ Designated Group percentage;

> ‘Black’ Youth percentage;

> ‘Black’ Persons with disabilities percentage;

> ‘Black’ Unemployed People percentage;

> ‘Black’ People living in rural areas percentage;

> ‘Black’ Military Veterans percentage;

> Modified Flow-Through application derived from the

Ownership percentages, yes or no;

> Application of Exclusion Principle, yes or no;

> Application of Discounting Principle, yes or no;

> Empowering Supplier status, yes or no;

> The financial year-end applied;

> Name and signature of Technical Signatory;

> Any amendments to the certificate must be clearly


> A Consolidated Certificate must indicate such. It must refer to

an attachment that incorporates the names, registration and

VAT numbers of organisations included in the measurement;

> In terms of the reflection of the level and points on the

B-BBEE Certificate, the following is applicable:

• Participated in YES Initiative, yes or no;

• Achieved YES Target and 2.5% Absorption, yes or no;

• Achieved 1.5 x YES Target and 5% Absorption, yes or

no; and

• Achieved Double YES Target and 5% Absorption, yes

or no.

SANAS refers to B-BBEE Certificates, but does not refer to some

requirements regarding hard or soft copies. They only refer to the

information provided and items displayed on the certificate. So the

same rules would apply for both hard and soft copy certificates.

Point (l) to (cc) in the list of information required on the B-BBEE

Certificate was not necessary for version 2 of the R47. Although

some B-BBEE Rating Agencies did display this information on their

certificates, it was not necessarily a requirement up to now.

A B-BBEE Rating Agency shall exercise proper control of

Ownership indicated on the B-BBEE Certificate. Furthermore,

it shall take suitable action to identify and deal with incorrect

references to an organisation’s B-BBEE verified status.

In instances where it is necessary to correct or withdraw a B-BBEE

Certificate, a B-BBEE Rating Agency shall ensure that its client

conforms with its procedures that outline the withdrawal of a

B-BBEE Certificate and ensure that the re-issued one is used.

Such a system would include, but not be limited to:

> Notifying an organisation, otherwise its client;

> Notifying SANAS;

> Uploading the information on a B-BBEE Rating Agency’s

website; and

> Informing all relevant stakeholders.

The R47-03 introduces an outline as to how a B-BBEE Rating

Agency will conduct a re-evaluation of a B-BBEE Verification. The

re-issuing of a B-BBEE Certificate stems from material changes

following a B-BBEE Verification that would impact the outcome of

an organisation’s score. If there are material changes to the overall

score or status level, a B-BBEE Rating Agency must retract the

initial B-BBEE Certificate and issue a new one. The issue date of

the certificate will reflect the re-issue date; however, the expiry

date on the original certificate will not change. A re-issued B-BBEE

Certificate will be valid for the Measurement Period of the initial

B-BBEE Certificate

The R47-03
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