BBBEE wrong

[adrianh]

What did your daughter study?

[Justloadit]

Art Director and Copyright Editor at the AAA school of advertising and last year won a Bronze Loerie Award in the student category print scrabble campaign.

[JanChris]

Hey Jan, clearly you must be a very bad person because nothing good ever seems to happen to you.

You one sick puppy. It seems that you follow me around just to annoy me. Well, it's not working. I have dealt with your type of personality before. I suggest you get someone to help you.

[HR Solutions]

It seems that you follow me around just to annoy me

Follows you around ????????????????????? Are you SERIOUS ???????????
This is a public forum for all to post ......... Didn't realise it was only for "Janchris" ....... or did I miss something ...... maybe admin can fill us in where it says that certain posts are only for certain people.

[adrianh]

You one sick puppy. It seems that you follow me around just to annoy me. Well, it's not working. I have dealt with your type of personality before. I suggest you get someone to help you.

My type of personality...which is hmmmm....exactly what?

[wynn]

Mark Corke has posted this interesting article, enjoy.

"Keith Levenstein is about to tell us all about where the new BBBEE situation stands in his brief seminars, following the imposition of the new codes next week. At the time of writing this, Rob Davies was intent on imposing the new codes from 1 May. I have a slightly jaundiced view of BEE as a whole, notwithstanding the fact that something (meaningful) needs to be done to sort out the inequities of the past.

I guess I am just a bit tired of poor and indifferent service from people who have jobs because of their skin colour, and not because of their abilities. Indifference arises from the employees knowing that their numbers add to the employer’s score card first, and second; the employees knowledge that employers find it is a leap too far to dismiss the useless, care of the CCMA.

From front line call centre staff to sportsmen in the best teams. They know it and we know it. “Quota” is a four letter word. No really, it is.

There are unintended consequences to this social engineering. None of this is new, of course. When I left school, I was told I would never get a job unless I first got a degree because jobs were all reserved for Afikaners. Life was a lot worse for our black fellow citizens at the time.

Soon after leaving university, I decided that I was unemployable, anyway. Thank goodness for that self realisation as I struggled to create my own space without the luxury of a monthly pay cheque.

That is the thing about the future of South Africa. When the patronising dust has settled, the unintended consequences will simply perpetuate the inequalities of the past and present.

However, it is worth noting that in South Africa in 2015 there are many jobs which are considered very valuable, but falling into a few broad spectra:

•Most public sector jobs seem to be regarded as “reward – without – work” jobs. But apart from those:
◦Consultants are becoming the life blood of the nation as cadre deployment relies on them to get the job done.
•BEE has spawned a whole extra layer between those who are able, and those who can connect. Well if nothing else, it is a way of distributing wealth to the connected. We can only hope that some of it filters down to their respective communities. Personally, I have run out of puff, holding that breath.
•A whole raft of very capable white people who are unable to find employment the various sectors which now place small print at the end of their job adverts: “Preference will be given to PDIs”. Those people become struggling business owners, sometimes employing those with less initiative, other than “always being able to find a job because I am black”.
That last group is going to perpetuate a problem. White people are unable to find jobs commensurate with their abilities. So they take their skills to the small business sector, where they scrape and starve for years, building up one man operations, perhaps with a few staff members in support. The thing with being made to struggle, is that if the struggle does not kill, it strengthens.

When the dust has finally settled, and the strong are left standing, the employers of the future will be the strong who had to fight for their crusts. The workers will be those who rely only on their melanin to get their daily bread. That is a great sadness for a country with so much talent being wasted while it receives handouts.

These “businesses” or “jobs” if you prefer are, in a normal society, difficult to sell. However, South Africa has been an abnormal society for as long as it has had any sort of society in the last 300 years. The current hogs at the trough have no interest in changing that. Much like the pigs before them, and all the previous artiodactylous rulers before them.

The thing with abnormal societies is that abnormal practices flourish. So when a self employed businessman arrives at the end of his career in this abnormal society, there is a ready stream of one man operators willing and desperate to buy themselves into that job. It is not the way it should be. But is the way it is. And it is a meaningful way for small business owners to exit with some accumulated value.

The thing is, while banks may not be interested in financing these acquisitions, the youngsters in question often have access to family funds by way of cash or security, to help put them into jobs which will one day be the employers of the weak sons and daughters of today’s ruling elite.

It’s very depressing for the country as a whole, but it offers a way out for those who need to move on to a new phase in their respective careers."

[Dave A]

Just a reminder to credit content from other sources with a link where possible. Mark Corke's article on BEE is originally published here.

I really loved the "Red Rob". How the heck did we end up with such a die-hard communist as the Minister of Trade & Industry?

[wynn]

How the heck did we end up with such a die-hard communist as the Minister of Trade & Industry?

How the heck did we end up with the ministers of police, health, education, transport, etc. etc.?

[Blurock]

How the heck did we end up with the ministers of police, health, education, transport, etc. etc.?

Cadre deployment and jobs for those who will protect the corrupt One.

When the dust has finally settled, and the strong are left standing, the employers of the future will be the strong who had to fight for their crusts. The workers will be those who rely only on their melanin to get their daily bread. That is a great sadness for a country with so much talent being wasted while it receives handouts.

Thanks to BEE a great number of people (including myself) have started to use their grey stuff and have identified opportunities to get out of the rut and the rat race. After the almost disaster of starting up as a BEE company, the BEE partner did the honourable thing to resign. He is indeed an honourable man, but soon realised that he could not add any value to the business and was not prepared to stand in for 51% of the debt.

Not one of the banks or government institutions were prepared to fund us. We used our own money and found investors in our second year.

Today we, as white Africans, are doing business with black Africans on an equal footing. No BEE. No bull$#!t. We are passionate and patriotic South Africans, but we also have respect for our foreign brothers, some of whom we employ. We also generate an increasing number of direct and indirect jobs and provide skills to the people that we employ. We have started exporting our products and we have people queuing up to buy shares in our emerging business. A number of international companies have identified us as potential strategic partners. Maybe we are stupid, but we have just declined an enormous offer for our shares in the business.

This may sound like boasting, but sadly this is not the case. We could have been further and could have employed many more people, had it not been for political bias and BEE. We are often being told that our company is too white and to "get our house in order" before we can expect any orders. There is no concern for the 90% + black people that we employ and train. If we appoint only one fat cat to sit on our board with 51% of the shares we will be accepted.

No-where in the world has social engineering worked in the long run. Market forces will always prevail. An unjust rule will not correct the injustices of the past. What we need is forward thinking and a better work ethos. Stamp out corruption and do not humour politicians. We are finding that dealing with like minded business men of all races (why do I have to say that word?) is paying dividends as we can respect them for who they are and not the quota players appointed by government.

[Blurock]

Just as white entrepreneurs started their ventures post 1994 due to reverse racism, black entrepreneurs started various businesses pre 1994 during the apartheid era. Some of them remained small, shebeens, spaza shops and the likes, but others made it big in industries such as the taxi industry, cosmetics, cane furniture and others.

Names such as Herman Mashaba (Black like Me), Patrice Motsepe (African Rainbow Minerals) and Sam Motsuane (founder of African Bank) comes to mind. Franchises such as KFC helped to establish black people in business long before the demise of apartheid. There were also a number of Indian and coloured entrepreneurs who did not wait for a handout, but started their own businesses with sweat and hard work and pulled themselves up by their boot strings. I tip my hat to these people who had the guts to defy the government of the day and ignored politics in favour of business. Today we have many entrepreneurs of all colours; shopkeepers, franchise owners and even factory owners who can be proud of what they have achieved.

They have made it against all odds and so can we. Business should make its voice heard and not be shy to tell politicians that we are not going to put up with their corruption and Bull$!t. Let's stop moaning and lets be positive in supporting our fellow businesses and communities. Get politics and quotas out of business so that we can prosper and employ more people. Only then will we be able to create and spread the wealth that this great country offers us.

[sterne.law@gmail.com]

A common thread that runs through BEE thoughts seems to be the fixation on ownership. It is but one component and a company can easily score 65% without maximizing opportunities and without any black ownership.

Perhaps thus is as a result of the original structure which was pretty much all about ownership.
Of course the ultimate way is the bottom up approach where training and lower level employment should carry more weight. In this way people will develope naturally into the executive role and possibly ownership.

Unfortunately, due to corruption, the ownership starts to figure more prominently in terms of landing tenders.

The other thought process that is perhaps forgotten is that BEE is most important for those seeking tenders.
The non tender market is affected due to the drill down effect where tender contenders (nice rhyme that) want their suppliers to have ststus to score the points in procurement.

[Greig Whitton]

A common thread that runs through BEE thoughts seems to be the fixation on ownership. It is but one component and a company can easily score 65% without maximizing opportunities and without any black ownership.

Even if a company did score 65% without any black ownership, it would only achieve a Level 8 B-BBEE rating (which is pathetic).

At most, a 100% white-owned company can achieve a Level 4 B-BBEE rating: 19 points for Management Control + 25 points for Skills Development + 44 points for Procurement and Supplier Development + 5 points for Social Responsibility = 93 points in total = Level 3. Then deduct 1 Level for failing to achieve the mandatory, minimum ownership target = Level 4. By contrast, a black-owned EME or QSE automatically qualifies for a Level 1 or Level 2 rating (and doesn't even have to get certified - a sworn affidavit will suffice).

The difference between Level 4 and Level 1 is huge. On top of that, some procurement points can only be earned by doing business with black suppliers. In industries where a supplier's B-BBEE rating has a serious impact on their ability to secure demand, the new Codes are making it almost impossible for white-owned companies to compete.

[sterne.law@gmail.com]

I am not disputing that 60-80% is not great.
What I think is important is that people are aware that they can get some sort of rating without ownership levels.
In reality you either will or you will not have ownership.
Having made that decision you may as well get what rating you can.
Sure you may only be eligible for 20% of opportunity compared to a 100% rating, but 20% is better than zero.

If you are in a sector where tenders are dominant, we can concede taht the rating is worth zero if you not connected.
Fair - NO, but taht is the current status quo

[wynn]

I bumped into a pal I have not seen in a while and he introduced me to his ten year old adopted black son.

He said "Meet Thando, he is my son and BBBEE partner."

I don't know if he was joking or serious but if this is legal you can kill two birds with one stone.
You can be proactive by offering a good home to a black orphan who would normally not stand a chance in the system and of which there are probably more than white owned business or families.
You can get 100% compliance by naming him as the sole or majority owner but because he is under age you are his guardian and make all decisions for him/her and the business.

The long term benefit is that when he reaches his majority, if he is interested, he will probably be the right fit to be active in the business.

[IanF]

Wynn I met a white guy who had an ID book with his first name as Thabo. Was not a nice guy.