Commission says fronting frustrates BEE
BUSINESS LIVE / 20 OCTOBER 2020 - 17:09 / LUYOLO MKENTANE
The Broad-Based BEE Act aims to increase black participation in the economy and not just use ‘token’ blacks as a ‘front’ in business
The commission monitoring compliance with empowerment legislation says it has received almost 700 complaints in the past four years of fronting, a form of non-compliance with the law in which “token” black people are passed off as company shareholders.
The Broad-Based BEE (B-BBEE) Act, which aims to increase black participation in the economy and redress the legacy of apartheid, provides for the establishment of the B-BBEE Commission to monitor and promote adherence to empowerment legislation. It is compulsory for all B-BBEE ownership transactions over R25m to be registered with it.
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