What the verification period refers to?

What the B-BBEE verification period refers to?

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To simplify, the verification or measured period refers to your company’s official 12-month financial period.

 

However previously in practice, companies were allowed to get B-BBEE verified on any financial period provided that it is not older than 18 months. This practice changed following an email and confirmatory letter sent by SANAS in 2021, which specifically dictated that companies need to get B-BBEE verified on their most recent financial period meaning, a financial period which is not older than 12 months.

 

Despite a court order handed down by the South Gauteng High Court on 22 March 2022, which confirms the below, it is important to note that the majority of accredited SANAS B-BBEE verification agencies uphold SANAS regulations as well as their interpretation and methodology up until such time, a formal media statement has been issued or the DTIC has formally gazetted a clarification notice in a Government Gazette:

 

“The directive issued by SANAS on 6 April 2021 entitled “Clarity on Measuring Period” in the subject line, is declared unlawful and is reviewed and set aside. It is further declared that SANAS has no power in terms of the Broad-Based Black Economic Empowerment Act No. 53 of 2003 (“the BEE Act”) or any other legislative instrument, to prescribe the measurement period that must be considered when verifying an enterprise’s compliance with the BEE Act or the Codes of Good Practice issued under the BEE Act”.

 

We therefore recommend that before you start preparing for your B-BBEE verification, you liaise with your company’s selected B-BBEE verification agency, to confirm their understanding and application of the above.

 

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Regardless of whether your company is a Start-up Enterprise, a Private Company, or a Close Corporation, Listed or Unlisted, operating in South Africa has changed drastically in the past years