How will the Corona virus and social distancing impact B-BBEE verifications?

With the coronavirus pandemic that South Africans are currently facing and President Cyril Ramaphosa’s announcement of a nationwide 21-day lockdown starting on 27 March, how will social distancing influence B-BBEE verifications?

SANAS requires that all B-BBEE verifications be based on information that has been verified during an onsite visit to the measured entity and that no score may be given without an onsite assessment of the entity (paragraph 18.1.1 of the R47-02 SANAS procedures).

However, there may be circumstances where it is not possible or feasible to conduct onsite assessments. In such circumstances, assessments may be conducted remotely (SANAS Notice: Remote Assessments – Management & Execution (P35-01), dated 20 March 2020).

SANAS defines these extraordinary situations as “A circumstance beyond the control of the organization, commonly referred to as ‘Force Majeure’ or ‘act of God’”. Examples given by SANAS include “war, strike, riot, political instability, geopolitical tension, terrorism, crime, pandemic, flooding, earthquake, malicious computer hacking, other natural or man-made disasters”. 

Has the SANAS B-BBEE verifications and procedure been changed?

Because of the coronavirus pandemic and to promote social distancing, SANAS has temporarily relaxed their R47-02 procedures by issuing a Notice dated 18 March 2020, permitting the following:

• B-BBEE Verification Agents may conduct assessments remotely via any suitable video communication channel should an onsite assessment not be possible.
• A director of the measured entity must provide a sworn affidavit which confirms their physical location.  He/she must also provide proof of their physical address, which is not older than three months.
• All interviews may be conducted via any suitable video / teleconferencing communication channel, which must be recorded and saved by the B-BBEE Verification Agent.
• It is expected of the B-BBEE Verification Agent to identify and mitigate all risks with regard to remote onsite visits.
• Where documentation to support the verification process cannot be obtained, the B-BBEE Verification Agent shall view these documents via any suitable video communication channel, which must be recorded appropriately.
• A sworn affidavit should be submitted by the director of the measured entity, confirming that all information provided to the B-BBEE Verification Agent is true and correct.
• Take note that the B-BBEE Verification Agent accepts full responsibility for the results of the B-BBEE Verification Certificate and Report.

In conclusion

This approach by SANAS is welcomed, as delays in B-BBEE Verifications and the issuing of B-BEE Certificates can be avoided by allowing remote onsite visits.  Therefore, companies are empowered by being able to do business with a valid B-BBEE Certificate even though they are challenged by the coronavirus and social distancing.

As SA's leader in in Legal Compliance and Transformation Solutions, SERR Synergy assists businesses with the development of strategies and compilation of strategic reports to enhance B-BBEE levels. Our services include the issuing of a SANAS-accredited B-BBEE verification certificate by an accredited verification agent. We facilitate and manage the verification process on behalf of clients to ensure successful outcomes.

About the Author: Rachéll van Staden is a Project Manager who joined SERR Synergy in July 2016 at the Pretoria B-BBEE Department. She obtained her BCom Law and LLB degree from the University of Pretoria and is also an admitted attorney, conveyancer and notary.