BEE compliance has become a major aspect of South African business, with many companies considering it a make-or-break point. With the threat of losing business due to lower compliance these companies are turning to the BEE scorecard and looking for loopholes and ways to manipulate the system in their favour. Deceiving to appear more BEE compliant than what is the reality is known as B-BBEE fronting.
What is BEE fronting?
B-BBEE fronting, simply put, is a form of window dressing. These companies put up a ‘front’ which makes them look more BEE compliant, when in actual fact the impression of compliance does notexist. An example of BEE fronting practices has been found where black employees who earn a lower salary such as cleaning staff are listed as directors. However, these employees are entirely unaware of their listed position and do not receive any of the authority or benefits of their … Read the rest