• Wealth and poverty

    True riches would be to create a safe and satisfied community for all South Africans.

  • SABC shenanigans

    SA has already embarked on a slippery slope to autocracy, warns Terry Bell in Inside Labour.

  • Zim tastes people power

    Protests in Zimbabwe are forcing Mugabe to face anti-government sentiment, says Memory Mataranyika.

All data is delayed
Loading...
See More

Zuma convenes BBBEE summit

Sep 20 2012 18:08
Sapa
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.
rob davies  |  jacob zuma  |  bbbee

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
2 comments
Comments have been closed for this article.
 

Company Snapshot

We're talking about:

THE SAVINGS ISSUE

Saving can make a lot of things possible, but we all know how hard it is to save. This special Savings Issue will help you get focused.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Sarb's decision to keep the repo rate unchanged is:

Previous results · Suggest a vote

Loading...