Fronting comes into focus
1 Jul 2019 - by Tessa Reed
THE Broad-Based Black Economic Empowerment Commission has made findings against several companies that do not comply with the Broad-Based Black Economic Empowerment Act and has initiated a remedial policy that could see companies face prosecution if they fail to remedy non-compliance.
The B-BBEE Commission was set up to oversee, supervise and promote adherence to the Act. Companies found guilty of B-BBEE fronting can be fined up to 10% of annual turnover and individuals can be jailed for up to 10 years.
The lack of skills, development and training is widely cited as the biggest challenge holding back industry transformation.
Commenting on the difficulty faced by the industry in achieving the desired B-BBEE certification, Morné du Preez, ceo of Tourvest Travel Services, says: “The challenge is in finding a high calibre of staff while still working toward the highest level of B-BBEE status, and developing processes that are sustainable and make a long-term difference within the community.”
Recognising this skills gap, Mladen Lukic, gm of Travel Counsellors SA, says the company has tied its transformation strategy to the launch of its academy.