Ricochet News

BEE warning as financial year-end looms

Feb 8, 2017
BEE warning as financial year-end looms

As the financial year-end looms for companies, the challenge of preparing the requisite reports on top of normal day-to-day activities often results in the complex and tricky issue of BEE (Black Economic Empowerment) being put on the back burner.

But relegating BEE to a more convenient time could be fatal for a business, warns Arnel Ayers, attorney and BEE specialist at Greyvensteins Attorneys. 

“With the financial year-end of 28 February 2017 just around the corner, business owners should have planned and be well on their way towards achieving their compliance targets,” she says.  

“In a world where change is the only constant, one has to accept and work with the fact that targets in every facet of life change every year. Accordingly, now is the time for business owners to ensure that their BEE financial targets for the year will be achieved by the end of February deadline, failing which they will need to treat the situation as urgent and seek professional assistance to remedy it.”

She adds: “It’s also important to note that, as from 1 January 2017, donations made after the close of an enterprise’s financial year will no longer be allowed.

According to Ayers, SANAS (South African National Accreditation System) is currently the country’s only accreditation body for verification agencies, which have to follow their stringent regulations.  Failure to do so, she warns, could result in verification agencies losing their accreditation.

Within the ever-changing BEE environment, she notes further, the validity and applicability of Sector Codes must be investigated in order to ensure compliance.  As the DTI (Department of Trade and Industry) website is not a reliable source for this information, the facts should be obtained from the applicable industry body, or a professional specialising in BEE compliance. 

“Without such information, planning becomes a daunting task,” she says.

Finally, Ayers says there are a number of exciting projects planned for the Eastern Cape during 2017, hence the need for a current BEE certificate, without which the chance of benefitting from them is very slim. “It’s therefore vital to ensure that the best possible level of compliancy is reached as soon as possible.  This is a classic example of ‘failing to plan is planning to fail’,” she concludes.

For more information, call Greyvensteins Attorneys on (041) 501 5500 or Cor Van Deventer 082 443 6301 / cor@greyvensteins.co.za; or Arnel Ayers 076 613 6164 / arnel@greyvensteins.co.za.