GOVERNMENT BELIEVES BUSINESSES ARE UNDERMINING TRANSFORMATION
On 30 November 2023, the B-BBEE Commission called for tighter legislation and greater powers to “address companies that undermine transformation efforts in South Africa.”
In a recent report, the Commission stated that it has received 1,273 complaints. According to the Commission, 84% of these complaints pertain to fronting.
The B-BBEE Act has defined fronting practices to mean transactions, arrangements, or other acts or conduct that directly or indirectly undermines or frustrates the achievement of the objectives of the B-BBEE Act, or the implementation of any of the provisions of the B-BBEE Act. Fronting effectively means businesses are “misrepresenting their transformation standing”.
Although NEASA is and will always be fundamentally opposed to any race-based business policies such as B-BBEE, we realise that some employers have no other option than to comply.
Consequently, we offer, in collaboration with a specialist service provider, a solution for businesses that is lawful, adheres to all of the B-BBEE regulations, addresses the concern as highlighted by the B-BBEE Commission – without compromising on free-market principles.
This solution also encompasses a variety of other benefits for business, including mitigating the political and economic instability-related risks to a business, by:
- implementing B-BBEE compliance without breaking key free-market principles;
- building a valuable business despite B-BBEE challenges;
- enhancing and diversifying the business’ balance sheet;
- reducing in-country risk exposure;
- achieving accelerated personal wealth creation;
- performing generational- and succession planning;
- ensuring tax- and dividend efficiency;
- making better use of a compliance budget; and
- setting a business up for growth outside of South Africa.
Employers who wish to find out more about how to future-proof their businesses through this comprehensive solution can send an email to email@example.com or call 082 318 7562.
For more information
NEASA Media Department