The Broad-Based Black Economic Empowerment Act 53 of 2003 and the ways in which the commission of fronting practices affects the achievement of its objective

Abstract

The Broad-Based Black Economic Empowerment Act 53 of 2003 is one of the statutes enacted to promote the right to equality, which is enshrined in the Bill of Rights of the Constitution of the Republic of South Africa. It is therefore aimed at balancing the economic playing field of black and white people in South Africa. Broad-based black economic empowerment is a governmental policy initiated to enable the black people to participate in the economy meaningfully. The Act was promulgated inter alia to facilitate broadbased black economic empowerment by achieving a substantial change in the racial composition of ownership and management structures and in the skilled occupations of existing and new enterprises. The issue that arises is whether this objective is being achieved and how the Commission of fronting practices affects the achievement of this objective. Statistics show that this objective is not being achieved and that the Commission of fronting practices plays a negative role in its achievement.