The first change is that exempt micro enterprises will no longer have to obtain certificates from verification agencies and will be able to use an affidavit testifying to their turnover as proof of their BEE status. The same will be the case for black-owned enterprises whose turnover is less than R50m.
If 100% black-owned, the enterprise will automatically receive level 1 status. If majority black-owned, it will get level 2. No verification exercise will be necessary and companies need only provide an affidavit as proof of their ownership status. The motivation for this from the department was to save medium-sized black companies the expense of verification.
But verification agencies, which stand to lose a lot of business from the new system, have a valid argument that the result will be even more cheating by medium and big companies. At present, clients and suppliers can check a partner’s credentials with a verification agency but there will be no way of checking the veracity of an affidavit.
"Since the new codes are also so much more onerous … the incentive to cheat — by falsifying turnover to remain below the R10m threshold — is going to grow," says Mr Oberholzer.
via www.bdlive.co.za
The Oberholzer here is Deon Oberholzer of Veri-Com whose getting a lot of Business Day press. The intention of Rob's Folly is to ease the burden and cost of verification for black companies. But he and his drafters have fucked this up completely because a black-owned QSE still needs to prove they are an "empowering supplier". 51% black-owned QSEs have it even worse because they have to prove ownership in terms of the ownership scorecard and then prove they are empowering suppliers. It boggles the mind that you could make such a half-hearted attempt at something and think that we are such idiots that we would believe you.
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