Broad-Based Black Economic Empowerment (BBBEE) is an important component of South Africa’s transformation agenda. Misrepresenting a company’s BBBEE status or ownership structure—commonly known as “fronting”—is a serious offence.
Examples of fronting include:
- Misrepresenting ownership or management control.
- Using individuals as nominal shareholders without meaningful participation.
- Submitting inaccurate or misleading BBBEE certificates or affidavits.
Suppliers should ensure that all BBBEE documentation submitted during procurement processes is current, valid and accurately reflects the company’s ownership and management structure.
Honest disclosure promotes fair competition and protects the integrity of the procurement process.