Deputy Chairperson, the question is from hon Landsman and it relates to issues of fronting. So, let me start perhaps just with indicating that fronting is when a company or a person misrepresents ownership or control in a company or in a contracting agent. They do so in instances where you are seeking to measure the level of black economic ownership of a company.
It normally done where the law requires that you have a certain minimum ownership. The code may require that or alternatively where there is commercial advantage. So, that is what we would normally describe as fronting. It can also include instances where the conduct of a company hides the true nature of the contracting party - who really the contracting party is; or it seeks to frustrate the achievement of the law. So, that is what fronting is about.
The question asked: What are the programmes to deal with this? At least three sets of measures that seek to ensure that a contractor
or a company is who they say they are. The first is that we use BEE- verification agencies that are required to evaluate the claims of a company and issue a certificate. Those verification agencies in turn are accredited by a government agency. So, they are private agencies but there is a government agency that checks that they maintain the proper standards.
The second thing is that the Broad-Based Black Economic Empowerment Commission can receive complaints from the public or it can investigate on its own initiative when it believes that there may be fronting taking place. Thirdly, the courts have a role to play in this matter in that the courts can and in fact have in the past taken action on this matter. There are very severe penalties that apply when you are found guilty of fronting. So, we have both the institutions and we have an active deterrent in place.
As we expand our black economic empowerment, BEE, programmes, we are going to have to make sure that we put more time and energy to ensuring that the claims that companies and individuals make are in fact proper, honest and are claims that stand up to scrutiny. Thank you.
THE DEPUTY CHAIRPERSON OF THE NCOP (Ms S E Lucas): Thank you very much. Hon Rayi, it has been indicated by the Chief Whip that you will ask a supplementary question.