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Johannesburg - Fronting activities aimed at dodging the transformation imperatives of broad-based BEE legislation have become so sophisticated that monitoring the practice will be prioritised to penalise those found guilty of cheating the system.
Speaking at a seminar on the creation of the Broad-Based BEE Commission in Joburg this week, acting commissioner Zodwa Ntuli said the department of trade and industry would no longer be powerless to act against individuals and companies found to have misrepresented their credentials to achieve higher BEE ratings.
“Fronting activities are taking a sophisticated turn. They are no longer doing what others do when companies put in a tender and just use their maids’ names. Maybe that’s still there for smaller companies, but now it’s so sophisticated. With that sophistication, we need to be closer to the process so that at least the people who get to be part of the BEE deals can actually come to us and ask if this is the right deal,” said Ntuli.
