Fin24

Zuma convenes BBBEE summit

2012-09-20 18:08

Pretoria - President Jacob Zuma convened the fifth meeting of the broad-based black economic empowerment (BBBEE) advisory council in Pretoria on Thursday.

In a statement the presidency said the meeting was aimed at monitoring and evaluating progress on the overall review of the BBBEE Act and its codes of good practice.

Minister of Trade and Industry Rob Davies made presentations on the review and the codes.

The legislation will put in place strict measures aimed at curbing fronting in the South African market.

Fronting is when companies pretend to be compliant with the act by placing black people in positions that would make them seem as if they either own the company, or are at a level to make decisions in the company.

The presidency said the bill was being certified by the State Law Advisers. When this process ended, the Parliamentary Portfolio Committee would commence with public hearings.

In August, Cabinet approved the gazetting of the revised BBBEE codes of good practice for public comment. The revised codes would enhance the implementation of BBBEE "in a meaningful and sustainable manner," the presidency said.

At a previous presidential BBBEE advisory meeting earlier this year, Davies said when the bill sailed through a commissioner would be assigned to solely focus on fronting.

He said the commissioner would receive and investigate cases of fronting, correct the situation and, in extreme cases, he would have the authority to prosecute those involved.

"The problem is we haven't got provisions in place to catch fronting... ordinary law enforcement officers don't have the capacity to go and investigate transactions of that nature, to see where fronting is taking place," said Davies at the time.

Currently those found guilty of fronting can be charged with fraud and face imprisonment.
 
*Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

Comments
  • sandor.l.varga - 2012-09-20 19:33

    Let's put more useless previously disadvantaged people in high position, few years time a company will go bankrupt but a comrade will be smiling all the way. And he must come from. The Zuma clan...

  • marius.murths - 2012-09-21 12:58

    Why is it that everyone has a problem with BBBEE especially since this is a rectification strategy to undo Afrikaner Economic Imperialism

  • pages:
  • 1