Page 12 - Q&A

The importance of continuing to plan for BEE
compliance despite Covid-19 BEE

April 2020
“My business and prospects during the Covid-19 lockdown has all but died. My
BEE consultant has however contacted me to remind me that it is time to renew
my BEE certificate. Is it really worth doing so in this time?”

If one for the moment ignores the social responsibility of businesses to transform
and be BEE compliant and purely look at the economic factors related to BEE
compliance, it still remains a big “Yes”, you should comply and ensure you
have a good BEE certificate, despite the economic pressures all South African
businesses are under due to Covid-19.
Important to note is that the South African National Accreditation System
(SANAS) remains operational during the Covid-19 lockdown and its accredited
verification agents are conducting verifications as well as issuing BEE certificates.
SANAS has implemented special Covid-19 measures and BEE certificates can
be issued without a physical on-site verification. Documents can be provided
electronically and interviews are conducted remotely.
On the point of why businesses should continue their BEE planning and renewal
of BEE certificates, a few aspects can be considered:

Any business that lets its BEE certificate lapse during this period may be in
breach of contract if it was agreed with a client or it was stated as a condition
of a tender that your business will have and maintain a BEE certificate or maintain
a specified BEE level as part of the conditions to your business providing goods
or services.
Not having a BEE certificate may disincentivize clients, now or once the lockdown
lifts, from procuring goods or services from you and rather focus on using
alternative suppliers. BEE legislation has not been paused by the lockdown and
procurement compliance will remain vital to clients.

Many businesses may feel the same as you and not elect to renew their BEE
Certificates and even stop all BEE planning for the moment. The moment things
get going again, these companies may be at a substantial disadvantage to
other competitors that have continued with their BEE compliance and end up
losing market share to such competitors. Remember, preparing and obtaining
a BEE certificate takes time and there is no quick fix for getting a BEE certificate.
Without a BEE certificate your business will not be able to apply for and secure
state tenders. With many businesses and industries reliant on state tenders
for work, this could mean a death knell for your business if it does not have
a BEE certificate.

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