“Clarity” Regarding SANAS Letter

Any verification undertaken from the 15th of August 2020, should be done so in such a manner that it does not exceed a period of 12 months from the most recent Financial Year – End.

This was the subject of the SANAS clarification letter dated the 6th of April 2021 (which referenced a supporting SANAS email clarification dated the 14th of August 2020 and attempted to “clarify” said email).

Unfortunately, this letter did not shed light on how companies should address the following real issue that several companies have and may still face: what happens if a company is in the middle of a verification and their current financial year, ends? Does the measured entity continue to finalize their verification or must the entity stop the verification immediately?

You may say, that company should have planned the verification to start (and end) sooner! However, as consultants, we know that in certain instances, getting a company verified (and completing the verification quickly) is not always as easy as that, for instance:

  • In this “new normal” we find ourselves in, companies may have employees working from home and not always easily accessible.
  • Integral people to the verification may get sick and therefore be unable to provide information.
  • Loadshedding, internet connectivity and other factors also contribute to delays.

It is therefore necessary for SANAS to provide a comprehensive statement so that there is no uncertainty for measured entities, verification agencies or consultants. Failing that, consultants should also be given access to ask SANAS questions or perhaps there should be one body that regulates all consulting firms and who can then provide more guidance in terms of the clarification(s)?

When it comes to understanding the B-BBEE legislation and implementing the interpretation thereof, EconoBEE is dedicated to coming up with innovative transformation strategies for our clients that make business sense.

Please feel free to reach out to us on 011 483 1190 or info@econobee.co.za if you would like to hear more.

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