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BBBEE Commission to tackle fronting cases

A recent article adapted from Business Day online highlighted that the Broad-Based Black Economic Empowerment Commission has received about 100 complaints related to ‘fronting’.

The BBBEE Commissioner, Zodwa Ntuli has described the complaints as “traumatising” and pointed out that most complaints were from shareholders & employees who were offered significant shares to boost BBBEE levels. These stakeholders were denied access to financial information or meetings. Some stakeholders were forced to leave the company once the desired levels were achieved.

Ntuli explained that verification agencies also share the responsibility to establish the correct BBBEE levels for all companies and to detect fronting.

The BBBEE Commission is committed to give companies a strategy to do things correctly. The commission will not tolerate fronting and will ensure that companies who are found guilty will face the full might of the law.

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