Fronting and tender abuse were an “unintended consequence of an overemphasis on diversity of ownership and senior management in implementing broad-based black economic empowerment (BBBEE)”, President Jacob Zuma said while chairing a meeting of the Black Economic Empowerment Advisory Council that met at the Union Buildings on Friday.
“We are happy that the council spoke out so strongly against fronting, which is one of the major obstacles to the implementation of BBBEE.”
“Fronting is an insult to the dignity of the poor and we have to act decisively against it. I am pleased that the council is so determined to work with us to act against this heinous practice,” Zuma said in a statement issued by the presidency.
It was agreed that fronting insulted the dignity of the poor and the practice had to be eradicated – possibly through punitive measures against those found guilty thereof.
The council said the government should “urgently ensure proper monitoring and evaluation” of the implementation of the BBBEE Act.
The presidency said the meeting “emphasised” that BBBEE was “not just about big business deals for a few individuals in society”. - Sapa