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Cosatu slams BEE fronting
Thursday, March 04, 2010 | Comments: 2
by Siyabonga Ntshingila ;
Cosatu’s backlash against what it perceives as the failure of BEE continued yesterday when the trade union federation advocated subordinating BBE initiatives to the crucial social imperative of job creation.
Cosatu attacked what it called “import fronting” a practice whereby black owned enterprises won government business but instead of sourcing locally then imported the production inputs to the detriment of local business. Cosatu pointed to the furore over some major 2010 projects, calling the issue a “scandal”. The federation also called for BEE laws to be amended to mitigate against this.
Cosatu second deputy president Zingiswa Losi and industrial policy co-ordinator Jonas Mosia expressed the federation’s disenchantment with current BEE practcies. “While in the past we saw massive outsourcing and privatisation with consequent job losses to promote narrow BEE, fronting is the new tendency emerging.”
Cosatu affiliate NUMSA also called for the “re-nationalisation” of key corporate ArcelorMittal (formerly state-entity Iscor) and SASOL, stressing they major role they played in South Africa’s value chain production. NUMSA attacked ArcelorMittal’s controversial pricing policy as undermining South Africa’s industrialisation agenda.
Both labour and Business Unity SA (Busa) stressed the importance of co-ordination between government departments and other stakeholders if the action plan was to succeed. The buy-in of state-owned enterprises would be critical.
Cosatu’s backlash against what it perceives as the failure of BEE continued yesterday when the trade union federation advocated subordinating BBE initiatives to the crucial social imperative of job creation.
Cosatu attacked what it called “import fronting” a practice whereby black owned enterprises won government business but instead of sourcing locally then imported the production inputs to the detriment of local business. Cosatu pointed to the furore over some major 2010 projects, calling the issue a “scandal”. The federation also called for BEE laws to be amended to mitigate against this.
Cosatu second deputy president Zingiswa Losi and industrial policy co-ordinator Jonas Mosia expressed the federation’s disenchantment with current BEE practcies. “While in the past we saw massive outsourcing and privatisation with consequent job losses to promote narrow BEE, fronting is the new tendency emerging.”
Cosatu affiliate NUMSA also called for the “re-nationalisation” of key corporate ArcelorMittal (formerly state-entity Iscor) and SASOL, stressing they major role they played in South Africa’s value chain production. NUMSA attacked ArcelorMittal’s controversial pricing policy as undermining South Africa’s industrialisation agenda.
Both labour and Business Unity SA (Busa) stressed the importance of co-ordination between government departments and other stakeholders if the action plan was to succeed. The buy-in of state-owned enterprises would be critical.
2300 Nigel Hope
[ Thursday, May 13, 2010 | 4:37:17 PM ]
Hi
I (non white) was used for BEE Fronting with a company in Cpt. I'm now busy with the DTI but the main shareholder that used me still does not want to "come clean" His a perfect example of why gov is so strict on these matters.....If I had my way, I wish gov would send him to jail as he not only "stole" from me but from loads of gov departments.
If anyone could assist please inbox me at nigel@futdi.co.za
I (non white) was used for BEE Fronting with a company in Cpt. I'm now busy with the DTI but the main shareholder that used me still does not want to "come clean" His a perfect example of why gov is so strict on these matters.....If I had my way, I wish gov would send him to jail as he not only "stole" from me but from loads of gov departments.
If anyone could assist please inbox me at nigel@futdi.co.za
1598 Lyndall Beddy
[ Thursday, March 04, 2010 | 3:49:20 PM ]
As long as you have BEE you will have fronting and tender fraud.
Same as you had fronting in apartheid (but little tender fraud - even if a pal got the tender it had to be the lowest tender)
I once had an insolvency of a butcher - who had owned 4 shops in white areas but always pretended to be the employeed - and had NEVER paid tax in his whole woking career. He simply had never registered himself for PAYE
I know another case - the bank could not get judgement on the BMW on which the client owed money because of a letter from his "employer" on his earnings (too low).
The BMW was found abandoned at the airport - and he turned out to be his own employer.
In the 1980s I took few cases in my own name(I had young babies, and was breastfeeding and working) - liquidators were flying around the world recovering creditors' assets from insolvents who had told their host countries they were "fleeing apartheid"
Same as you had fronting in apartheid (but little tender fraud - even if a pal got the tender it had to be the lowest tender)
I once had an insolvency of a butcher - who had owned 4 shops in white areas but always pretended to be the employeed - and had NEVER paid tax in his whole woking career. He simply had never registered himself for PAYE
I know another case - the bank could not get judgement on the BMW on which the client owed money because of a letter from his "employer" on his earnings (too low).
The BMW was found abandoned at the airport - and he turned out to be his own employer.
In the 1980s I took few cases in my own name(I had young babies, and was breastfeeding and working) - liquidators were flying around the world recovering creditors' assets from insolvents who had told their host countries they were "fleeing apartheid"
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