DTI seeks to prosecute illegal verification agents

Deputy Minister for Trade and Industry Mzwandile Masina has embarked on a campaign to get rid of bogus agents issuing fake certificates of compliance to companies seeking certification. Image: GCIS

Operation Khusela, which means 'safeguard' is being led by the Deputy Minister of Trade and Industry Mzwandile Masina, who says the department is targeted illegal agents who operate outside the DTI's offices in 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 because of such activities. If anyone submits a fraudulent certificate there is no way the state will award a tender to that business, even though it might have had the capacity to deliver the work. Innocent people are falling prey to these criminals to put an end to it," said Masina.

Masina accompanied by the Acting Deputy Director-Director, Nomonde Mesatywa, DTI officials and the media approached several of these illegal verification agents and was able to get bogus BEE verification certificates rated from level one to level three from street vendors for as little as R800.

"Certificates issued by these people are so similar to the ones issued by SANAS-accredited agencies. Unsuspecting people are unable to notice the difference. Our people were able to get these certificates without even producing identity documents or financial statements to verify whether they are owners of the companies they represented," he added.

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

Masina also said the operation coincided with the release of the amended Codes of Good practice and shows how serious government is in pursuing its Broad Based Black Economic Empowerment initiatives.

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 a bogus agent, his business lost a tender worth R40m.