SACP supports action against fronting

The SACP has welcomed the Broad Based Black Economic Empowerment (BBBEE) Amendment Bill which would see the assigning of a commissioner to solely investigate incidents of fronting.

"The SACP urges government to move with the necessary speed to finalise provisions in law that allows for fronting to be criminalised," said spokesman Malesela Maleka on Wednesday.

Fronting is when companies place unqualified black individuals in high positions so the companies seem to be complying with the BEE Act.

The black individuals are made to look as though they own the company or have decision-making powers in the company when they actually do not.

"Such levels of dishonesty are nothing but corruption. Those who are involved in fronting are merely reproducing a parasitic, compradorial and colonial type relation between black sections of the capitalist class and established capital," said Maleka.

"The SACP calls on government to act decisively and criminalise fronting, to investigate the nature and extent of the practice and to act against those involved."

On Tuesday Minister of Trade and Industry Rob Davies said the Amendment Bill would put in place strict measures to tackle fronting.

He said a commissioner would be assigned to receive cases of fronting and investigate them.

Davies said ordinary law enforcement officers did not have the capacity to investigate transactions to see where fronting was taking place.

"We welcome government's decision to appoint a commissioner to deal with this scourge," said Maleka.