Fronting Indicators

Follow these fronting indicators and stop FRONTING. If you know of a company who you suspect is fronting then you can report fronting to the Fraud unit or the DTI’s BEE unit. If you need assistance or advice please contact us and we can assist you.

1. The black people identified by an enterprise as its shareholders, executives or management are unaware or uncertain of their role within an enterprise;

2. The black people identified by an enterprise as its shareholders, executives or management have roles of responsibility that differ significantly from those of their non-black peers;

3. The black people who serve in executive or management positions in an enterprise are paid significantly lower than the market norm, unless all executives or management of an enterprise are paid at a similar level;

4. There is no significant indication of active participation by black people identified as top management at strategic decision making level;

5. An enterprise only conducts peripheral functions and does not perform the core functions reasonably expected of other, similar, enterprises;

6. An enterprise relies on a third-party to conduct most core functions normally conducted by enterprises similar to it;

7. An enterprise cannot operate independently without a third-party, because of contractual obligations or the lack of technical or operational competence;

8. The enterprise displays evidence of circumvention or attempted circumvention;

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