The implications of B-BBEE compliance were examined by the Mpumalanga High Court, which stressed that it is not merely a tick-box exercise.
The importance of entering into Broad-Based Black Economic Empowerment engagements (B-BBEE) on bona fide terms and to comply with the purpose of the Act came under the spotlight in the Mpumalanga High Court.
An acting judge commented that being B-BBEE compliant is not merely a “tick-box” exercise for a company in securing certain contracts if the person appointed is not empowered to also participate in the running of the company.
The matter landed before the Middelburg seat of the high court after Ntimeng Johannes, a shareholder of a company called Waterzone, was replaced with a black woman after being used for 14 years to uplift their B-BBEE status.
Johannes contested this and made a range of demands, including the provision of certain company records. The court dismissed several of his demands but ordered that the company must provide him with certain documents.
