B-BBEE Fraud on the Rise

 In News Flashes

Misrepresenting your B-BBEE status is a deliberate attempt to circumvent the B-BBEE Act and Codes. As a result of misrepresentation, the Department of Trade and Industry could disregard or suspend an organisation’s B-BBEE scorecard, or it may result in a fine or up to 10 years jail time. A recent escalation in the number of companies that misrepresent their B-BBEE status has drawn the attention of Zodwa Ntuli from the B-BBEE Commission.

 

Ntuli weighed in saying “A verification process is critical to properly reflect the extent and level of transformation of each entity, and manipulation of financial information that ought to be used to conduct this process will not be tolerated,”

 

After an investigation revealed last month that a verification agency had issued two B-BBEE certificates improperly, the B-BBEE Commission and the DTI are on high alert. Furthermore, there are reports circulating of fraudsters issuing false B-BBEE certificates from internet cafés close to the DTI campus in Pretoria.

 

Having a valid B-BBEE certificate is imperative if your company wants to secure contracts for government work, including state-owned companies or with many large companies that rightly adhere to the B-BBEE Act.

 

Röhlig-Grindrod is a proud and legitimate Level 2 certified B-BBEE company and we take pride in our status in an industry largely dominated by international companies.

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