The Broad-Based Black Economic Empowerment world has been rocked by the decision of some of the icons of the industry to go public on a series of complaints about the Black Economic Empowerment Commission, a department of the Department of Trade and Industry.
The complaint is shrouded in some mystery because the commission, headed by Zodwa Ntuli, claims its work in individual investigations is confidential.
In 2019 the Kagiso Charitable Trust, the Mineworkers’ Investment Trust, HCI, the WDB Trust, Ditikeni Trust and Wiphold Trusts appealed to Trade and Industry Minister Ebrahim Patel to gazette clarifications that certain broad-based ownership schemes are legitimately black-owned.
The Broad-Based BEE Act aims to increase black participation in the economy and not just use ‘token’ blacks as a ‘front’ in business
The commission monitoring compliance with empowerment legislation says it has received almost 700 complaints in the past four years of fronting, a form of non-compliance with the law in which “token” black people are passed off as company shareholders.
The Broad-Based BEE Act, which aims to increase black participation in the economy and redress the legacy of apartheid, provides for the establishment of the B-BBEE Commission to monitor and promote adherence to empowerment legislation.
It is compulsory for all B-BBEE ownership transactions over R25m to be registered with it...