Front firms still faking black ownership – report

Front firms still faking black ownership – report
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Cape Town – Challenges posed by front companies that misrepresent their true shareholders by falsely claiming black South Africans as owners continues, the first annual Black Industrialist Report highlighted.
The report, released by the Department of Trade, Industry and Competition (DTIC), provides details of approximately 100 black industrialists and entrepreneurs who have been supported by the National Empowerment Fund (NEF), and the Industrial Development Corporation (IDC), with case studies covering a range of productive sectors including food production; clothing and textiles; and mining metals machinery equipment, among others.
“Fronting practices continue in which companies misrepresent the position of true shareholders and beneficiaries by falsifying black South Africans as owners. In some cases, black-owned firms have lent and continue to lend their names to tender documents, while the work is done by other companies; and the names of individuals are sometimes fraudulently put on a shareholder register without their knowledge,” the report found.

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