The Broad-Based Black Economic Empowerment ("BEE") Amendment Act, 2013 was signed into law by the President on 27th January 2014.

The Bee Amendment Act, among other things, provides for:

• the economic and financial support of 'black-owned" and "black-managed" businesses as a priority;
• a definition of 'fronting practises";
• the creation of a criminal offence for engaging in fronting practises, misrepresenting the BEE status of an enterprise or providing false information relating to BEE to a BEE verificationprofessional or to an organ of stae which carries a maximum sanction of 10 years imprisonment and /or a fine of 10% of annual turnover;
• prohibition of any person convicted of such an offence from transacting with any organ of state for a period of 10 years and the cancellation of any contract awarded by an organ of state on the basis of false information regarding the BEE status of that enterprise;
• the establishment of the BEE Commission to investigate allegations of fronting;
• a compulsory obligation for all JSE-listed companies to report on their BEE "compliance" to the BEE Commission.

The BEE Amendment Act will come into effect on a date to be proclaimed by the President and to be published in the Gazette.

Erika Petersen-Holmes, Partner

Contact: 031 575 7410 and petersen@wylie.co.za