The department of trade and industry (dti) will investigate allegations that white IT and engineering staff at management services company Bosasa, are being paid off the books in order to maintain a high BEE rating.<\/p>\n
According to a report in the City Press, a number of white IT and engineering professionals at Bosasa have had their salaries paid by a shelf company in order to keep them off of Bosasa’s main books.<\/p>\n
Documents seen by the City Press, as well as sources which have come forward, indicate that two companies – alleged “shelf ” company, Consilium Business Consultants and Sondolo IT, a Bosasa subsidiary – are at the centre of the claims.<\/p>\n
Bosasa head, Gavin Watson has denied any fronting, while Bosasa spokesman, Papa Leshabane explained to the paper that “Consilium is a specialist service provider to the Bosasa group.”<\/p>\n
Leshabane said that Bosasa does not own any shares in Consilium and denied that it was a shelf company paying employee salaries.<\/p>\n
However, white IT professionals who have been doing full-time work for Sondolo, and been paid significant salaries, have been listed as employees of Consilium, despite never having been in contact with the company.<\/p>\n
Sondolo has scored government tenders worth R1 billion in the past eight years, while Consilium has 37 full-time employees, according to documents seen by the City Press – yet has no offices or branding.<\/p>\n
According to chief director of the dti, Nonmonde Mesatywa, the department will investigate the allegations, noting that BEE fronting has become an escalating problem in business.<\/p>\n
MultiChoice BBBEE companies receive R900 million<\/strong><\/a><\/p>\n SA not a friendly place for SMEs: DA<\/strong><\/a><\/p>\n BEE ruining black entrepreneurship: study<\/strong><\/a><\/p>\n