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·      Deputy President Paul Mashatile warns of real consequences fronting companies ·      B-BBEE will be strengthened ·      B-BBEE Commission is toothless and needs to bite

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Sizwe sama Yende

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Deputy president, Paul Mashatile, has labelled fronting as “economic sabotage” and warned perpetrators of harsh consequences.

Speaking at the Frank Dialogue on B-BBEE (Broad Based Black Economic Empowerment) in Durban on Saturday, Mashatile emphasised the ANC’s position on the matter saying that B-BBEE would not be reversed but strengthened.

In the Government of National Unity (GNU), the DA differs strongly with the ANC and has launched its alternative Economic Inclusion for All Bill with the hope it will supplant the Public Procurement Act 2004 to do away with provisions favouring blacks.

“Fronting brings negativity to transformation. Fronting is economic sabotage. We must treat it as such. It will be confronted through stronger verification, faster case finalisation and real consequences,” Mashatile said.

Mashatile said that GNU partners had agreed to focus on priorities, which are inclusive growth. He said that he did not see “progressive forces” concurring with eradication of B-BBEE. 

“Transformation can’t be reversed. BBBEE will be implemented. It will be strengthened. Others will come screaming and kicking but we’re moving forward,” Mashatile said.

“The question is - are the progressive forces in parliament aligned. I don’t see progressive forces supporting such. The important thing is to continue the engagement. As ANC we talk to the EFF and the MKP. On progressive matters, I don’t see them not going with us. Whatever is brought by those who are opposed to transformation will not succeed,” he added.

Mashatile said that he was unhappy with private sector transformation and called for enaction of law that will force the sector to comply and set targets.

He said that B-BBE was a moral obligation rooted in democratic processes. “Transformation and B-BBEE remain necessary because exclusion remains unabated,” Mashatile said.

Minister of Trade, Industry and Competition Parks Tau said that the government needed to review policies to empower the B-BBEE Commission.

“The Commission does not have punitive powers. As we move forward we must ensure we empower it. Certainly, that’s something on our radar screen,” Tau said.

BBBEE Commmissioner Tshediso Matona indicated that police still regarded fronting complaints as fraud. Matona said 60 fronting cases were reported to the police and called for education of law enforcers about this offence.

“We must have powers like the Competitions Commission. It can fine (transgressors). The law says we must refer cases to the SAPS and NPA (National Prosecuting Authority),” Matona said.