the dti EMBARKS ON AN OPERATION TO EXPOSE ILLEGAL VERIFICATION AGENTS

the dti EMBARKS ON AN  OPERATION TO EXPOSE ILLEGAL  VERIFICATION AGENTS

The Department of Trade and Industry (the dti) today embarked on an operation (Operation Khusela-means to safeguard) to clamp down on illegal verification agents who issue fraudulent BEE and company registration certificates.

The operation which was led by the Deputy Minister of Trade and Industry Mr Mzwandile Masina, targeted illegal agents who operate outside the dti campus and around Sunnyside, Pretoria.

Masina said people who sell fraudulent BEE and company registration certificates are not only crippling the businesses in South Africa but are also harming the economy.

“Our economy is bleeding, people are losing tenders due to such activities because if it is detected that the certificate if fraudulent there is no way the state will award a tender to that business, which might have had the capability to deliver. Innocent people are falling prey to these dealings and it is important that as the state we put an end to it,” said Masina.

Masina accompanied by the Acting Deputy Director –Director, Ms Nomonde Mesatywa, the dti officials and the media approached several of these illegal verification agents and were able to get bogus BEE verification certificates rated from level one to level three  which were sold for about R800.00 in the street.

“Certificates issued by these people are so similar to the ones issued by SANAS accredited agencies and unsuspecting people are unable to notice the difference. Our people were able to get these certificates without even producing identity documentation and financial statements to verify whether they are even owners of the companies they claimed to own,” he added.

He said that the intention was to also demonstrate to industry the importance of properly regulated and that it was important for government to reclaim the verification space.

Masina also said the operation coincided with the release of the amended Codes of Good practise, shows how serious government is with Broad Based Black Economic Empowerment.

Mr Yanda Mjekula who owns a business in the property and mining sector said he had also fallen victim to the illegal agents. He testified that as a result of the fraudulent certificate that he unknowingly acquired from one bogus agent, his business lost a tender amounting to R40 million.

“I believe the dti should do something about this situation as every day innocent people are being robbed of their monies through these schemes. The fact that some of them operate from just outside the dti premises makes people to think that they are legitimate and have links with the department,” he added.