MTN, Nokia and Others Investigated for Allegedly Violating BBBEE Regulations

Entities found to have violated the Act may be referred for prosecution" and fined up to 10% of the entity’s annual turnover.

MTN Store (Delareyville Sellular)
MTN Store (Delareyville Sellular) (Photo Credit: Wiki Village)

By Staff Writer

The Broad-Based Black Economic Empowerment (BBBEE) Commission is investigating Netcare, Nokia, MTN, Eskom and the South African Social Security Agency (Sassa) for allegedly violating the BBBEE Act.

According to a report by Business Day, the Commission is investigating MTN’s broad-based black economic empowerment schemes MTN Zakhele and Zakhele Futhi BBBEE

The Commission is also investigating Nokia Solutions and Networks SA to determine whether the BBBEE ownership transaction involving its employee trust and Sekunjalo Investment resulting in 26% black ownership and the subsequent change in black ownership, which resulted in 31.28% black ownership by Sekunjalo, complied with the act.

Entities found to have violated the Act may be referred for prosecution” and fined up to 10% of the entity’s annual turnover. Individuals involved could be fined or imprisoned for up to 10 years.

Entities can also be excluded from doing business with the government for up to 10 years, and the contracts they have with any state-owned entity or government department can be cancelled, noted, the department of trade and industry’s Sidwell Medupe, told Business Day.

For more read: Major names in BEE investigation

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