Black Economic Empowerment (BEE) is a redress programme by the South African government to redress the inequalities of Apartheid amongst racial groups. BEE is governed by the Broad-Based Black Economic Empowerment Act 53 of 2003 as amended by Act 46 of 2013.
Fronting is regulated under the B-BBEE Act is defined broadly as a "transaction, arrangement or other act or conduct that directly or indirectly undermines or frustrates the achievement of the objectives of the B-BBEE Act …". The types of fronting include window-dressing, benefit diversion and opportunistic intermediaries. Fronting is a criminal offence and is punishable by a fine or imprisonment.