Reporting Fronting
DESCRIPTION: |
Government has a preferential procurement policy. This means government takes into account factors other than price when awarding a tender. If a company poses as a black economic empowerment company, when it is not in fact black-owned, this company is guilty of "fronting". Forty percent of the Provincial Government's four billion rand per year procurement budget should go to black economic empowerment (BEE) companies. For more on this, read the Western Cape Preferential Procurement Policy The Provincial Goverment has undertaken to handle allegations of fronting very seriously. There is concern that companies are posing as BEE companies in order to improve their chances of being awarded contracts. Provincial Minister of Finance and Economic Development, Lynne Brown, has warned that criminal charges could be laid against companies and tenderers found guilty of fronting. Contracts could also be cancelled. |
INSTRUCTIONS: |
If you supect a company of fronting, you can report this to Cape Gateway, by contacting 0860 142 142, visiting 142 Long Street or forwarding an email to questions@capegateway.gov.za. |
PROVIDED BY:
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GOVERNMENT BODY:
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Ministry of Finance and Tourism (Provincial Government of the Western Cape) |
The content on this page was last updated on 8 June 2005
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Cape Gateway is a government service aimed primarily at citizens of the Western Cape, providing information on local, provincial and national government |  |