The objective of the B-BBEE Act is clear in seeking to increase the number of previously disadvantaged social groups to participate meaningfully in the mainstream economy through various interventions.
Hosken Consolidated Investments has for more than a year been battling the department of trade, industry & competition over R117m the department is withholding from a subsidiary-owned company amid allegations of misrepresentation of its broad-based black economic empowerment status.
Accrediting fronting firms hampers BEE s good intent SIBUSISO MTSETFWA > By SIBUSISO MTSETFWA - 19 April 2021 - 07:57
I recently came across a “transformed” 51% black-owned company that flashed its level 2 broad-based BEE (B-BBEE) credentials to all and sundry as it stood at the front of the tender line, successfully winning and retaining contracts with large corporations it did business with before its “transformation”.
I say “transformed” because on closer investigation the company’s status was found to come from a 51% shareholding held by a “creatively” registered trust for black employees of the business. The 49% white shareholders and directors were trustees of the trust, while the black employees, as beneficiaries, had neither veto rights nor any say in the running of the business or decision-making of the trust. ..