Original publish date – Wed, 20 Oct 2010 11:38:55 +0000, Keith
We are seeing more and more queries of scorecards. Not because there is necessarily fronting but because more people are checking the scorecards.
We have been at the forefront of checking scorecards: we have discovered fronting and reported it. We have discovered mistakes, and asked the agency to correct it. We have raised queries that we satisfactorily resolved. We continue to try to check every scorecard received: We look at the entity – it is an EME, QSE or generic. Does it belong to a sector code and is it done correctly.
In the news lately has been the Kelly Group (www.kelly.co.za). Reports were that they changed/manipulated their employment equity credentials. Latest reports (http://www.fin24.com/Companies/Kelly-denies-fudging-BEE-status-20101019) are that they deny the charges.
This is the Kelly Certificate Expiry 19 May 2011-1 that was produced for them. On face value there is nothing wrong, other than it is surprising to see each element with a completely round number. We usually see ownership, employment equity and skills development calculated to two decimal places and in this case they earned 18, 10 and 12 points respectively for those elements. (They earned full points for procurement, otherwise we would have expected to see decimals as well).
We have asked them for their full report.
On a personal level, we sincerely hope that there is nothing to back up the allegations and we currently have no reason to believe that Kelly’s certificate is invalid. What we are pleased about is that people are checking certificates. This self-monitoring mechanism is what we always had in mind when we stated that the dti does not absolutely need another law to criminalise fronting. We stated that fronting IS fraud, and that it is not the customer or verification agency that will always catch fronting, but the opposition, or other involved people. Obviously the BEE consultant and then the verification agency is the first step to stopping fronting, or misrepresentation or even mistakes. Thereafter the media and other people will question the company’s credentials.
When someone talks of B-BEE, there is a distinct trend to looking at the scorecard or certificate. This is good news.