Over-emphasis on ownership has promoted fronting’

The Black Economic Empowerment Empowerment Advisory Council, chaired by President Jacob Zuma, called for the consistent implementation of broad-based BEE in all sectors of the economy to ensure that the policy touches the lives of more people. At a meeting at the Union Buildings this month the Council placed special emphasis on the implementation of the New Growth Path and the role of B-BBEE in creating jobs. “Provisions in the New Growth Path that require a much stronger focus on the broad-based elements of the BEE regulations were supported. These include ownership by communities and workers, increased skills development and careerpathing for all working people and support for small enterprise and cooperatives, as well as a new emphasis on procurement from local producers in order to support employment creation.” But the Council also noted the shortcomings in the implementation of BEE, especially the over-emphasis on diversity of ownership and senior management. “The unintended consequence of this over-emphasis is fronting and tender abuse,’’ said President Zuma.