Broad-based trusts ‘not black ownership’
The Kagiso, Royal Bafokeng Nation, Wiphold Investment and Batho Batho trusts may be affected
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 ...