Not the NABC content – but they would do well to pay attention to this post

Some people can verify BEE stuff, I can't. I cannot stand the roteness of that job – I find it staid, mundane, invasive and actually offensive. So I choose to consult – horses for courses they say. This is an article I wrote a few months' ago about the BEE consulting world.

 

What you should expect from a BEE consultant.

 

The BEE consulting industry is about 10 years old. With BEE laws and practices being reasonably bedded down the industry has become relatively established with BEE consultants being called in to provide a variety of BEE-related services to their clients.

Typically a BEE consultant is brought in for two reasons

1)    To remove the admin nightmare of both measuring BEE requirements and managing the verification process

2)    To advise on a specific issue that might need a little more focus. This point has opened up opportunities from a variety of professions ranging from lawyers and accountants through to HR professionals and corporate social investment specialists

BEE consultants differ from BEE verification agencies in that consultants do not verify. A simple analogy would be a cricket game where the players are watched over by an umpire. All decisions regarding wickets and runs are decided by that umpire. In the BEE world the consultant is the player and the verification agency is the umpire. The cost of setting up a verification agency is somewhat prohibitive which is one of the reasons why there are so few verification agencies. However the barrier to entry to become a BEE consultant is very low, all that is needed is a modicum of expertise and a client. Because of this low barrier to entry there is a possibility that the consultant you appoint might not be able to assist you properly. In my experience the following eight pointers should serve as a guide to what you should expect from a BEE advisor

1. A working knowledge of the codes and charters and how they interact with each other. It's not necessary to be an absolute expert but over the consultation period they have to satisfy the client that they are providing the best possible advice
2. A basic financial understanding. They should at least be able to read a balance sheet and income statement (understanding Afrikaans terminology is a bonus)
3. BEE consultants deal with a variety of departments in a company – from the financial department to the HR department and the procurement department. Each one has a different set of priorities and responsibilities – a consultant must be able to talk to each person with an understanding of their responsibilities and how these will benefit the company in their own BEE scorecard.
4. Overall knowledge of the legislation that black economic empowerment derives its legal legitimacy. This includes the Companies Act, Skills Development Act, Employment Equity Act et al
5. They should know what a verification agency will or will not accept. There are two ways to get behind this, you can either read the verification manual (which is an absolute must) or they can run ideas and interpretations past a verification agency. I have learned that there is little point in arguing over something when a verification agency has decided that they won't accept it.
6. Good writing skills are a benefit. Often a consultant will need to write certain types of policies, letters, memoranda of understanding which will form the basis of verification file.
7. A consultant will often be asked to refer charities or enterprise development beneficiaries for clients to earn points. A brace of these types of causes and beneficiaries that satisfy the various charters that can be referred are always useful.
8. A decent working relationship with a verification agency. I would recommend that they work with a few verification agencies. This is because it might be very embarrassing when you have advised a client on one issue that a verification agency has rejected
9. A willingness to sign some sort of non-disclosure agreement. The consultant will be exposed to almost all your company's confidential information.

A brief case study

I was approached by an engineering company who needed BEE advice. I really cut my teeth on this project I found myself advising them on the construction charter which involved setting up a variety of initiatives and programmes to get them to the BEE score they wanted. Some of the things that I ended up doing for them were:

1. Sitting in with lawyer and assisting in the drafting of the shareholders' agreement and contract of sale for the shares. A lawyer knows the law – but they typically do not understand the subtleties of a BEE deal and the demands the codes make on such a transaction
2. Writing HR policies that are unique to the construction sector charter
3. Advising on the best method to adhere with the complicated enterprise development requirements in the charter

This was pretty much what the client expected and it proved to be a very sharp learning curve. I suspect that these kinds of demands are placed on consultants all the time.

Maybe the NABC will accept this as the standard. Hmmm – no never, that's too much hard work.