Sipho Mabena
Premium Journalist
2 minute read
22 Oct 2020
4:55 am

Fronting by white-owned companies now ‘too sophisticated to detect’

Sipho Mabena

'We plan to enhance cooperation with law enforcement agencies because we believe dealing with violators will send a strong message to those involved in such activities and to society,' says Ntuli.

B-BBEE Commissioner Zodwa Ntuli. Credit: DTI

White-owned companies have perfected the art of fronting – using black people as tokens to qualify for tenders – with the Broad-Based Black Economic Empowerment Commission saying this sabotaged the economy and scuppered opportunities for black people to play a meaningful role in the economy and its growth. According to Zodwa Ntuli, the commission’s head, 26 years after the attainment of democracy, company ownership patterns remain unacceptable in SA. Since 2016, it had received more than 800 fronting cases for investigation and 386 had been finalised, while seven matters had been referred to the National Prosecuting Authority and South African...