23 Apr BEE trusts have been a source of abuse enabling fronting, says B-BBEE Commission

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.

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, which owns 47,5% of Thebe Investment Corporation.

Commissioner of the B-BBEE Commission Zodwa Ntuli joined Business Day TV to discuss the body's investigation and what the findings suggest about empowerment legislation and its impact on transformation and the economy.
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