Did you know that not all companies need to undergo the formal verification process to obtain a B-BBEE certificate? The B-BBEE Codes make provision for certain companies to achieve automatic recognition simply by completing the prescribed B-BBEE Affidavit based on their size and level of black ownership.
There are many mistakes to avoid when doing this, though. It is important to take note of the following when completing the B-BBEE affidavit:
- First check if you are using the correct affidavit. Confirm your industry and annual turnover because depending on the sector that your company forms part of, there are different affidavit formats, and for some sectors, the turnover threshold differs. For example, in the transport sector, there is no allowance for the use of an affidavit, and this sector requires an accountant or auditor’s letter.
- If there is a selection to be made between Director/Member/Owner, be sure to indicate the relevant role.
- If there is a selection to be made between Financial Statements/Management Accounts, confirm which document you are relying on by indicating the applicable item.
- When asked which financial year-end is used, ensure that you provide the full date, e.g. 28 February 2023.
- When asked to confirm the black ownership and automatic B-BBEE level, indicate this by ticking the relevant box.
- For validity, ensure that you complete and sign the affidavit in full (e.g. no percentages may be left blank) AND that it is commissioned on the same day.
If you are unsure, feel free to contact your B-BBEE consultant for advice to avoid errors in this process.
