The use of Affidavits within B-BBEE transactions may be confusing to many.
The intention of sworn affidavits to confirm BEE compliance is to save small businesses the costs of obtaining a SANAS verified certificate.
An affidavit is an important document. A person who makes an untruthful statement in an affidavit is guilty of perjury and can be prosecuted.
Key principle 2.6 of the BEE Amended Codes states:
“Any representation made by an Entity about its B-BBEE compliance must be supported by suitable evidence or documentation. A Measured Entity that does not provide evidence or documentation supporting any initiative must not receive any recognition for that initiative.”.
Any BEE certificate or sworn affidavit must have supporting evidence, or at least supporting evidence should be available. In the context of an EME or QSE, the entity may need a letter from their professional Financial Accountant confirming the turnover and black ownership levels, or any other suitable evidence.
Five current affidavits are permitted within the B-BBEE Act and have been listed below for your convenience.
Affidavit – EME – Generic
Affidavit – EME – Specialised Entity
Affidavit – QSE – Generic
Affidavit – QSE – Specialised Entity
Construction Sector Codes – EME Affidavit