The Broad–Based Black Economic Empowerment Commission (B-BBEE Commission), an entity within the administration of the Department of Trade and Industry (“the dti”), will kick-start the awareness campaign on the B-BBEE Act with a Conference on Fronting to take place on 29 March 2016 at the Midrand Conference Centre, Midrand in Gauteng, from 08:30 – 16:00. The theme of the conference is Do it right and lead from the Front on Empowerment.

Fronting is one of the practices that have become prevalent in South Africa since the B-BBEE Act 53 of 2003 was enacted, and has significantly derailed economic transformation. The B-BBEE Amendment Act 46 of 2013 was enacted to create the B-BBEE Commission to, amongst other things, deal with this scourge by monitoring and investigating these fronting practices.

The Minister of Trade and Industry, Dr Rob Davies, and the Deputy Minister, Mzwandile Masina, who are custodians of B-BBEE and Black Industrialist Program, will deliver the keynote and opening addresses respectively. Other speakers include, Joan Fubbs who is the Chairperson of the Portfolio Committee on Trade and Industry, Eddie Makue who is the Chairperson of the Select Committee on Trade and International Relations, Koko Khumalo of the B-BBEE Advisory Council, Mzwanele Manyi of Progressive Professionals Forum, Polo Leteka of Identity Development Fund, Keith Levenstein of EconoServ SA, Sisa Ntshona of Enterprise Development Council of SA, Matshego Ramagaga of the Companies Tribunal, Nomkhosi Magwaza of Armscor and Thabo Masombuka of the Construction Sector Charter Council.

The conference will provide the overview of the B-BBEE Act and the recently launched Black Industrialist Program as critical interventions by government to drive economic transformation, and is divided into three panel sessions covering the ownership, management control, enterprise and supplier development, skills development and socio-economic development elements of B-BBEE.

Panel Session One is on “Identifying Fronting Practices (Are you a Front or Fronting someone?)” and aims to help companies to know what would amount to fronting in their businesses, and black people to realize when unscrupulous companies are fronting them. For instance, it is alleged that some companies add their unaware black employees as shareholders, or employ black people in positions that appear senior or executive on paper, to fraudulently obtain high level B-BBEE status for government bidding processes, concessions or licenses.

Panel Session Two is on “Doing Empowerment the Right Way (What are the benefits of getting it right?)”, to guide on how to implement B-BBEE correctly within the company strategy and operational plans. Further, practical examples to be given for effective enterprise/supplier development, sustainable employee/collective schemes, proper B-BBEE equity deal structuring, progressive skills transfer and employment equity, as well as accurate B-BBEE verification process for reliable B-BBEE certificates.

Panel Session Three is on “Lessons Learnt from B-BBEE Gone Wrong (What must you avoid doing?), which will alert the stakeholders on important things such as corporate governance, contractual terms, minority protection rights, shareholder’s rights and obligations, and omissions that have led to fronting occurring in companies. Given the number of disputes arising from B-BBEE transactions, this session will also provide information on cost effective alternative platforms to resolve disputes, and services that the B-BBEE Commission will offer in this regard.

The B-BBEE Commission has identified simplification of the B-BBEE Act as a priority area in its advocacy, education and awareness strategy. Knowledge and understanding of the Act will help prevent fronting practices from continuing in our economy, while enabling the B-BBEE Commission to focus more on assisting companies to implement B-BBEE correctly, and investigating fronting complaints to eradicate those fronting practices that are already in existence.

To RSVP for the conference, contact EmpowaWorx at telephone 011 482 7256 and email loyiso@empowaworx.co.za / ramarem@beecommission.gov.za by 23 March 2016. Please note that confirmations are on a first come first serve basis.