The Broad-Based Economic Empowerment (BBBEE) Commission has welcomed the decision by the Gauteng High Court to dismiss, with costs, the application by CRRC E Loco Supply to set aside a decision of the commission and interdict the publishing and implementation of its findings and recommendations.
This was triggered by a fronting complaint lodged by Lietsiso Mohapeloa and Juliet Mxhakaza, who were directors of Matsete Basadi Consortium (MBC), against CRRC, pursuant to which findings were issued by the commission in November 2018.
The matter was heard by the High Court in October 2020.
The commission successfully defended the attack on its mandate by CRRC, a joint venture between CSR Zhuzhou Electrical Locomotives and MBC.
The High Court found that the commission acted correctly and that its findings were rational in respect of allegations that MBC and its members were denied participation, economic benefits and access to information.
The court characterised the shareholders’ agreement between the parties as “just a ruse designed to disguise a window dressing type of a relationship as an empowerment deal”.
The commission says the ruling cements its authority to “fearlessly safeguard the objectives of the economic transformation agenda”, and paves the way for seamless referral of these types of matters to criminal law enforcement agencies and other regulatory bodies for further consideration. 