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The Role of the B-BBEE Rating Agency & The Measured Entity.


Often the distinction between the duties & responsibilities of the B-BBEE Rating Agency & Measured Entity are unclear, and/or insufficiently communicated. The latter more than likely resulting in confusion & frustration experienced by both the Measured Entity as well as the B-BBEE Agency during the annual B-BBEE Verification engagement.


It's very important to establish those duties & responsibilities applicable to each party prior to the onset of the verification engagement so as to ensure that there is a clear understanding of what is going to be required from each party.


This being said, one of the most prevalent misconceptions relates to the fact that the B-BBEE Rating Agency is in no way responsible, nor required to collate verification related data for any measured entity, and that their core focus should remain isolated to the impartial verification of the data presented to them. The B-BBEE Rating Agency is thus responsible for the assessment & validation of the claims presented by the Measured Entity against the relevant associated supporting data, in an effort to determine the B-BBEE Status Level of the Measured Entity against the Amended Codes of Good Practice, or relevant applicable B-BBEE Sector Code.


Taking the above into account, often conflict may arise due to the fact that the Measured Entity may be under the impression that the B-BBEE Rating Agency is in some way responsible for the resultant Verification score issued after the conclusion of the verification engagement, and it's for reasons such as this that it is very important to ensure these duties & responsibilities are addressed as the onset of the process, and that they do not come as a surprise right at the end.

"Often conflict may arise due to the fact that the Measured Entity may be under the impression that the B-BBEE Rating Agency is in some way responsible for the resultant Verification score issued after the conclusion of the verification engagement."

Each accredited B-BBEE Rating Agency would attend to the above according to their own documented procedures relating thereto, therefore if these duties & responsibilities of both parties are unclear, it would be best to discuss the latter in more detail with your B-BBEE Rating Agency who would be able to provide the relevant clarity.



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