Fraudulent BEE deals to be scrutinised
Fraudulent Black Economic Empowerment deals will be scrutinised by government’s BEE Advisory Council.
Chaired by President Jacob Zuma, the council now requires contracts to be registered with the council, or constant monitoring.
The Black Economic Empowerment Advisory Council says it will plug some of the loopholes found in BEE deals with its new regulations.
Problems of pseudo empowerment, fronting and corruption have regressed gains the programme was meant to achieve.
The BBBEE commission says of the 33 complaints placed with the advisory, 22 of those were of fronting.
Penalties for those contravening BEE codes include arrest, blacklisting, contract cancellation and 10 percent of the company’s turnover.
The advisory will distribute the new regulations soon and investigate fraudulent deals and will also act as an advisor for companies going into new deals.