Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Verification Manual

8. Agreeing on Terms of Engagement
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8.1The Verification Agency shall agree on the terms of the B-BBEE verification engagement with the measured entity. To avoid misunderstandings, the terms agreed should be recorded and set out in a written engagement letter incorporating any other standard contract terms and conditions that the Verification Agency ordinarily applies to its engagements

 

8.2Engagement terms generally include rights of access to all relevant information at the measured entity and facilitate access to outside third parties for purposes of obtaining relevant evidence for purposes of the verification engagement, as well as billing arrangements.

 

8.3The engagement  letter may include a clause limiting the liability of the Verification Agency to actions brought by the measured entity arising from its  negligent conduct in the verification. This flows from the fact that the verified Scorecard and B-BBEE Status Report could be distributed to third parties who were not party to the verification engagement and have no contractual relationship  with  the Verification Agency.

 

8.4Acknowledgement of the terms and conditions of engagement by the measured entity's signatory provides evidence of the relationship with the Verification Agency, and also establishes a basis for a common understanding of the respective responsibilities of each party.

 

8.5After having reviewed the request for verification, the Verification Agency shall notify the measured entity whether or not it is accepting the request for verification. The reasons for non-acceptance shall be conveyed to the applicant (e.g. resource constraints).

 

8.6The terms of engagement between the Verification Agency and the measured entity shall include provisions that:

 

8.6.1require the measured entity to supply any information needed for its intended verification, and

 

8.6.2requires the measured entity to conform to the requirements for verification.