Majority of Broad-Based Trusts declared ‘not Black Ownership’

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BEE CRACKDOWN

Majority of broad-based trusts declared ‘not black ownership’

The Kagiso, Royal Bafokeng Nation, Wiphold Investment and Batho Batho trusts may be affected
23 April 2019 – 05:10 Carol Paton

The commission that monitors compliance with empowerment legislation has declared that the vast majority of transactions involving broad-based BEE trusts are not compliant with the law as the trusts are not genuine and effective black ownership.

The Black Economic Empowerment Commission, which was set up in the department of trade & industry in 2017, has written to dozens of companies informing them of the need to rectify their ownership structure and undergo re-verification of their BEE status or face investigation for fronting.