A Cape Town company that has been found guilty by the B-BBEE Commission of violating the B-BBEE Act by fronting black employees as shareholders to obtain fishing rights, claims it had no intention to defraud anyone.

A Cape Argus report says African Tuna Traders CC was reported by a former employee, Phephe Khekhe, who told the commission he had been employed as a driver for the company between 2001 and 2010, when his employment was terminated.

During that time, Khekhe said, he and six other black people held 14.29% each as director-shareholders in the empowerment company, Homotsego Trading (Pty) Ltd.

Khekhe said his credentials were used in a subsidiary company, Umbhalo Trading (Pty) Ltd, to secure fishing rights, but that he received no economic benefits.

Department of Trade, Industry & Competition spokesperson Sidwell Medupe said: ‘An investigation by the commission revealed that credentials of black employees of seafood processing firm African Tuna Traders CC were presented as black shareholders for the purposes of obtaining the fishing rights that the company uses to trade in the fishing industry.’

The commissioner of the B-BBEE Commission, Zodwa Ntuli, recently flagged the practice of fronting as a critical impediment to transformation.

More than 80% of the complaints received by the commission relate to this practice.

Full Cape Argus report