Guilty firms to be fined for fronting

2011-11-24 13:48

Cape Town  - Companies found guilty of "fronting" could be fined between 2% and 10% of their turnover if draft legislation approved by cabinet becomes law.

Briefing the media on Thursday, following cabinet's fortnightly meeting the day before, government spokesperson Jimmy Manyi said the executive had approved the publication of the broad-based black economic empowerment act amendment bill for public comment.

Amendments to the act included, among other things, the introduction of penalties for non-compliance with certain elements of the broad-based black economic empowerment (B-BBEE) scorecard.

These penalties take the form of a "discount" from overall score.

Nomonde Mesatywa, trade and industry's chief director for black economic empowerment, told journalists at the briefing that the bill also introduced, for the first time, "penalties for non-compliance" for companies found guilty of fronting.

Fronting occurs when companies misrepresent their contribution to the objectives of B-BBEE in order to gain preferential treatment when it comes to access to licences or business opportunities.

Asked what the penalty might be for those found guilty, Mesatywa said the size of the fine would depend on the severity of the offence, but would be "between 2% and 10% of the turnover of the company".


  • 100002227914361 - 2011-11-24 13:55

    Ag please, you racist bunch of thieves!!!!

  • 100001537126598 - 2011-11-24 14:05

    Funny that, the initials BEE are an abreviation of racism, surely discriminating against an individual or giving an individual an advantage because of his cread or colour is racism, or have I got it wrong ?

  • jerhone - 2011-11-24 14:09

    anything to rob the public so they can steal more

      100003067428713 - 2011-11-24 14:15

      Useless people have to leech off another mans success, can they not do anything on their own, they only know how to take. Why are we so unlucky to be stuck with these corrupt bastards?

  • 100003100676740 - 2011-11-24 14:13

    Should be called black window dressing to create useless individuals sharing profit they do not deserve or BWCUISP.

      100002227914361 - 2011-11-24 14:17

      Jip begging bowls in hand!

      sabongam - 2012-04-04 09:56

      Well you didn't beg, you took.Now that the roles are reversed its a problem? FYI - I'm 110% behind the placing of people in positions despite of the colour of their skin. As long as they're competent and have they have the necessary qualifications...Despite what you say, BEE is a must. 18-years of ANC rule cannot fix the 48-years of preferantial treatment, white people enjoyed during NP governance.

  • jannie.debeer - 2011-11-24 14:16

    Why don't they just charge firms who don't comply 5% and forget the rest of this BEEE fiasco. Stop criminalizing everybody and everything. I am sure many companies will agree to paying a premium for not having to comply.

      freefromu - 2011-11-24 15:11

      different way of looking at , give business a choice , but then they can not do business with goverment, remember private business need not to adhere to bee but bee removes a barrier 'political' to enter into any business with state organs .ps it is law to evaluate on price, bee, capacity,woman, disabled then your in business.

  • Nasdaq7 - 2011-11-24 14:17


  • 100002818502460 - 2011-11-24 14:20

    The nail in the coffin for all small white owned business The end of honest business is in sight The end of RSA also APARTHEID is back the only country in the world with affimative action for a majority Shows you what crooks can do to a country THE END

  • freefromu - 2011-11-24 14:57

    this will give opportunity to ventures that are based on merit than on unskilled people who always have a hand out asking, a white business or black business will need to evaluate who they partner with and thus adding value to each other then to the country. Not a situations were we take our helpers "maid" sons/daughters to be partners ,this does not add any value to skill transfer in the long run, yes fronting must go

  • Thevisitor - 2011-11-24 15:09

    What is this broad based economic empowerment !@#%$%. WHo is it banefiting anyway. If the guys who are usede as fronts are being paid, to me thats economic empowerment. So whats wrong with that?. I suddenly hate being black. Why can't we simply compete as equals 17 years into independence

  • Nasdaq7 - 2011-11-24 15:48

    The bottom line is it is going to take 50 years for this country to pull itself together. We all should just sit back, relax and diversify our assets, employees and businesses globally. Jimmy Manyi and the ANC has forced us to do that.

  • sam.guud - 2011-11-24 18:48

    Government your BEE stinks! It is time for all other Races to have their own Empowerment Initiatives to be instituted so that everybody is treated fair, this constitution of this Government is rotting!!!!!!!!!!!!!

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