Company probed for fronting

OWNER ‘INSULTED’ BY INVESTIGATION

A VAAL electrical engineering company that rakes in millions of rands from government tenders is being investigated for fronting.

This follows allegations that the company’s black directors are not being invited to board meetings and are not being paid dividends.

Now, Reliant Electric has an arduous task of proving to the Department of Trade and Industry’s broad-based black economic empowerment commission that the allegations are false.

A black worker lodged the complaint to the B-BBEE commission in November.

This week the commission wrote to Reliant Electric’s owners, Geof Harrison and his son Brett, to inform them of the investigation and invite responses to the allegations.

The commission gave the company until next week Friday to supply information, including a record of tenders it has won since 2013.

Lodging the complaint anonymously, an employee brought the matter on behalf of colleagues allegedly in the dark about their shares. The shareholding scheme that is now a bone of contention started a decade ago.

“Shareholder meetings are held but it is only white people who attend those meetings,” the employee told the commission.

“They are only forcing us to sign for minutes of meetings that we never attended.”

He said while they bought the shares some years ago, they still do not know their value. “The employees scheme is not quantified and no shares certificate has [been] issued.

“We are not happy because the company is still deducting our money for shares that we don’t have control of.

“We never get profit shares or tax returns for those shares. We don’t even receive financial reports from auditors of the company.”

The complaint also alleged the two blacks listed as co-directors are no big shots in the company.

One is a receptionist and another is a supervisor on site, he said. The company has four directors, which include the two Harrisons.

“They are not benefiting from their directorship position. It is only on papers to use them for tenders.”

Reliant has a B-BBEE rating of Level 1. It has scored major projects from both private and public entities. It raked in R12.5-million for its work at Eskom’s Matla power station. At the Vaal University of Technology, Reliant was paid R6.9-million for electrical installations.

Brett Harrison reacted with shock to the probe, which he confirmed learning about this week.

“It’s extremely unfair that a 100% loyal South African citizen who complies with BEE has to be investigated. It’s extremely insulting to me.”

Harrison denied workers were being kept in the dark about shares and were not being paid dividends. “I give them what’s due to them.”

He denied that a director worked as a receptionist. Her desk was just near the reception area, Harrison said. “She’s an invaluable asset to me, a cog in the company. I’m empowering them the best I can.

“I’m not a fronter. I’m the real thing. Somebody wants more [money]. It’s some sort of greed.”

Acting commissioner of the BEE commission, Zodwa Ntuli, said: “We are not in a position to discuss investigations or the details thereof.”