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BEE Commissioner announces first investigations into Fronting Complaints

The Broad-Based Black Economic Empowerment (B-BBEE) Commission is enforcing its mandate by initiating investigations against certain entities which relates to regulatory B-BBEE ownership and Codes of Good Practice. All the identified entities were notified of initiated investigations whereby they will be given a 30 day window to respond to the findings - prior to allowing the B-BBEE Commission to finalise the findings. Notably, the B-BBEE Commission is permitted t...o initiate investigations by its own initiative which likely occurs as a result of a tip-off. In the instance where the B-BBEE Act is found to be breached, the entities may be referred for for prosecution and additionally be given a fine of up to 10 % of the entity's annual income. In addition, the individuals involved may also be fined or face up to 10 years imprisonment. The entity's will also be deemed unfit to conduct business with the government for a maximum period of 10 years and the contracts which they may have with any state will be cancelled. Further steps which the B-BBEE Commission may employ include: motioning the court of law to restrain any breach or for any remedial relief which may include the transaction or initiative being set aside. The B-BBEE Commission is not obliged to detail their investigative process however, the findings will be published as required and stated in the B-BBEE Act. Accordingly, in terms of the B-BBEE Act, the Commission is allowed to consider other dispute resolutions, upon facilitation and agreement. See below entities initiated for investigation: - Net Value Holdings (Pty) Ltd - MTN Group Limited - Nokia Solutions and Networks South Africa (Pty) Ltd - Worley Parsons RSA (Pty) Ltd - Netcare Limited - Dust-a-Side (Pty) Ltd, Dust-a-Side Holdings and Dust-a-Side Partnership t/a Dust - Eskom SOC Limited - South African Social Security Agency (SASSA) - Tempest Fire CC - Altius Trading 40 (Pty) Ltd t/a Reliant Electric - Forklift Parts World (Pty) Ltd - Marissimo BEE Professional Verification and Services - BEE Matrix CC - AQRate Verification Agency - National Empowerment Rating Agency (NERA) - Empowerlogic (Pty) Ltd - Premier Verification (Pty) Ltd

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