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Government is setting up a B-BBEE fronting commission! Here's why you should pay attention to its findings

by , 24 October 2014
The Department of Trade and Industry (DTI) is shaking things up when it comes to Broad-Based Black Economic Empowerment (B-BBEE).

On 10 October, it released the Revised B-BBEE Scorecard for Qualifying Small Enterprises (QSE) for public comment.

Now it's announced that it will set up a commission to look into B-BBEE fronting.

Here's why you should pay attention to the commission's findings...

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Before we get to why you must watch the commission closely, let's look at what B-BBEE fronting is

Fronting happens when companies misrepresent their B-BBEE status, stating that they meet a particular condition or have a B-BBEE Level they don't.
This problem has been rampant ever since the introduction of B-BBEE and government wants to clamp it down by setting up the commission.
According to www.sanews.gov.za, Trade and Industry Minister, Rob Davies, said the commission, which will be headed up by a commissioner, will deal with fronting, fraud and other issues that affect the B-BBEE programme.
According to Davies, the commission will be appointed by 31 March next year and will deal with complaints about allegations of fronting.
The Minister added that the commission will try to recommend solutions, but where there are serious transgressions, it will have to work with law enforcement agencies to enforce prosecution. 

So why should you pay attention to the B-BBEE fronting commission and its findings?

The fact that government wants to curb B-BBEE fronting is good news as unscrupulous companies will be rooted out.
It's also possible that the commission may come up with findings that may prompt government to introduce changes to help curb B-BBEE fronting and you'll have to get in line with these.
We'll keep you up-to-date on developments regarding this commission so you can comply with any of its findings.
In the meantime, if you have questions about B-BBEE, ask our experts at the Labour & HR Club.

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