Jail time for BBBEE 'fronters', warns Ramaphosa
9 September 2016
Cape Town - Deputy President Cyril Ramaphosa has told MPs that companies and individuals found guilty of "fronting" BBBEE statistics could now face a jail sentence of up to ten years.
Ramaphosa told the National Council of Provinces on Wednesday that the BBBEE advisory council had become aware of the "growing" practice, and agreed that penalties should be imposed on offenders.
"If you are found guilty of fronting, your business could face a penalty of up to 10% turnover, as well as 10 years in prison for individuals.
"A person convicted of such an offence, will also suffer by not being able to transact with the State for a period of 10 years."