WATCH: The reason BEE trusts are under investigation
The Black Economic Empowerment Commission, which was set up in the department of trade and industry in 2017, has written to dozens of companies informing them of the need to rectify their ownership structure and undergo reverification of their BEE status or face investigation for fronting.
Among the trusts that could possibly be affected are those that form part of the most successful and oldest BEE vehicles such as Kagiso Trust, Wiphold Investment Trust, the Sactwu Investment Trust, the Royal Bafokeng Nation Trust and the Batho Batho Trust.
Zodwa Ntuli from the commission joined Business Day TV to discuss the investigation and what the findings suggest about empowerment legislation and its effect on transformation and the economy.
Zodwa Ntuli from the Black Economic Empowerment Commission talks to Business Day TV about the ownership structure of BEE trusts
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