With more than 20 years into a new democratic era, Broad-Based Black Economic Empowerment (B-BBEE) has become a key part of government policy and doing business in South Africa.
However, the legislation presents business with certain challenges. Pieter Steyn, head of the B-BBEE practice at Werksmans Attorneys, discusses the following key issues affecting business in South Africa arising from B-BBEE compliance in this Moneyweb webinar:
- The legal framework for B-BBEE and the role and powers of the B-BBEE commission;
- Recent B-BBEE commission investigations and cases including the MTN and Eskom decisions;
- The use of trusts in B-BBEE ownership structures;
- The severe consequences of fronting practices (10% of turnover fines, 10-year jail terms and being blocked from state tenders for 10 years). What are the red flags?
- Understanding the role of B-BBEE in state procurement. When can sub-contracting amount to a fronting practice?
Brought to you by Werksmans Attorneys.