Understanding the implications of fronting

Companies are very desperate to get tenders that they even take an illegal route just to receive BEE accreditation. When a company deliberately provides the wrong information related to BEE compliance this is called fronting and it has serious implication on the company and the business owners or directors. BEE accreditation for a company leads to more business deals and the company can also apply or receive government tenders or other sector’s projects in which they will obtain more profit to sustain their business and apply for countless tenders. Fronting has many consequences on the business and its image.

There are three types of fronting practices, opportunistic intermediaries, benefit diversion and window dressing where a company lists their black employees as shareholders to be more BEE compliant as they will earn more points on the BEE scorecard. According to the amended code of good practice fronting is a criminal offence. Companies or anyone found guilty of this act will be fined and the penalty fee will be 10% of the annual turnover and imprisonment up to 10 years for the company owners. They will also be excluded from any government deals or tenders for 10 years. For those companies that reply on government tenders to operate they will have to liquidate or close the company. To report any incidents of fronting contact the Department of Trade & Industry http://www.dti.gov.za/contacts.jsp

There is always a solution to B-BBEE! Call Sparrow FET College today – 011 673 4410/4419 to make your BEE pain go away.

Sourced from www.cenfed.co.za

Building a generation that is fully equipped to take the bait

As the rate of unemployed graduates increases every year, skill development programmes help to reduce the rate by offering students with specific skills training that are highly demanded in the job market. The programmes also inspire an entrepreneurial mindset which will have a positive impact on the country’s economy and communities when the students open their own businesses. To help companies increase their BEE score card, they can invest in different kinds of skills development training including internships, school bursaries and learnerships. When investing in a skills development programme a company will be credited with 25 points on the BEE score card. With the #feesmustfall movement creating a disruption in tertiary institutions, companies need to spend money on skills development programmes to have a good reputation on their employment equity profile.

The Labour Relations Act 66 of 1995, states that no one should be discriminated in the workplace or while looking for a job according to their race, gender or social background. At Sparrow FET College we provide you with a solution that benefits your scorecard and your company image, which will result in repeated business. Sparrow FET College provides 12 months learnerships and 6 months skills development programmes. A company can either fund a student to study, pay for their school bursary or employ a student to gain workplace experience and grow within the company. Join Sparrow Schools FET in reducing the unemployment rate while increasing your BEE score card. #EducateAchild

Sourced from Cores and Econobee