The B-BBEE Commission issued a practice guide recently, which set to clarify the confusion around the validity of verification certificates, CIPC BEE certificates, and affidavits. B-BBEE Commission Practice Guide 1 of 2018
The guides us (amongst other things):
- on what constitutes a valid BEE verification certificate, CIPC BEE certificate, EME affidavit, and QSE affidavit.
- With confirmation that an EME affidavit is sufficient proof of BEE compliance for EMEs.
- An EME will only have to follow a QSE scorecard and be verified by a SANAS accredited verification agency when it wants to improve its status.
- Start-up businesses with contracts exceeding the EME/QSE threshold must also get a SANAS accredited agency to do a verification.
- on the implications of contravening the BEE Act by trading with a fraudulent/invalid BEE certificate:
- Entities could be fined up to 10% of their annual turnover.
- And individuals involved could face up to 10 years in prison and/or be fined
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