Carol Paton Writer at Large

The commission that monitors compliance with empowerment legislation has declared that the vast majority of transactions involving broad-based BEE trusts are not compliant with the law as the trusts are not genuine and effective black ownership. The Black Economic Empowerment Commission, which was set up in the department of trade & 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. Its function is to monitor and record empowerment transactions with a value of more than R25m. It also has the responsibility to ensure that all transactions that are still running are compliant with the Broad-based Economic Empowerment Act, even if they were concluded prior to the commission’s establishment. 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 ...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.