BBBEE wrong

[ians]

I enjoy watching this fella.

https://www.youtube.com/channel/UCzqFS4UcsG1zkn9Gc9prudw

[Blurock]

In an article written on the 18th of November 2020 on the University of the Witwatersrand’s website, William Gumede, an associate professor in the School of Governance at the university writes a scathing critique of Broad-Based Black Economic Empowerment(BEE).

He describes it as:

Arguably one of the most wasteful, costly, and ineffective redistribution strategies, devised in any post-colonial society since the end of the Second World War”.

I fully agree and tip my hat to you sir.
I refuse to register for BEE and will not support such a destructive and corrupt system.

Read the full article https://dailyfriend.co.za/2021/10/02...ils-of-b-bbee/

[Blurock]

John Endres: ‘As the JSC interviews showed, the transformation agenda ensures that SA fails to use its talent pool effectively, while providing a convenient point of entry to individuals who lack the requisite skills.’

I am all for equal opportunity and transformation, however, the Ain't No Responsibility party is now loading the judiciary with their cadres and ignoring the competent and better qualified candidates. They even have some dubious characters with proven cases of incompetence and bias on their shortlist. How independent can our judiciary then be in future?

[ians]

Its like anything in life ... you give a little or take a step back ... people will walk all over you.

An example back in the 80's I worked for a company ... I worked long hours 7 days a week ... I was sent to other sites to "help" move jobs along when they were getting behind ... I was given tasks nobody else in the company could do ... like building 6 movie houses from scratch ... doing complete fire alarm system installations etc.

I was promised that I would become a Forman and get a vehicle ... the new shopping centre started construction ... before I knew it ... there others who had started after me ... but because of a bra hey and a bra there in key positions ... other less qualified and less experienced electricians took the foreman position and got the company vehicle ... when I did national service ... by the time I completed my national service ... the electrician positions were already filled by others who didnt have to do national service ... 1600 of us were given trade hand jobs and our salaries cut in half ... people need to wake up and look around ... dont worry about blacks taking the jobs and tenders etc open your eyes.

I see it happening with many companies ... you look at the ratios ... look at who are the managers ... the sales personal ... the accounts department ... look at the government look at who holds the key positions who gets the tenders ... who is sitting in the back round controlling the money and positions.

[Blurock]

In 2012 an anonymous BEE businessman explained why tender prices were often so inflated: ‘You pay to be introduced to the political principals,’ he said. ‘You pay to get a tender, you pay to be paid [for completed work], and you must also “grease the machinery”. From time to time, you are called upon to make donations to the…ANC. There are also donations to the youth league, the women’s league, and the SACP.’ Those who failed to make the necessary payments either in cash or ‘in kind’ – by giving sub-contracts to the relatives of public servants and politicians – would find themselves excluded from state contracts worth many millions of Rands.

[Blurock]

Excerpts from an article by Anthea Jeffery shows just how damaging BEE is to our economy, job creation and the advancement and integration of Black Business:
Last week the Constitutional Court struck down the Preferential Procurement Regulations (the Regulations) gazetted in 2017 under the Preferential Procurement Policy Framework Act (PPPFA) of 2000.

As the SCA pointed out, Section 217(1) requires that ‘all public procurement be effected in accordance with a system that is fair, equitable, transparent, competitive, and cost-effective’. As an exception to this general rule, Section 217(2) adds that national legislation must ‘prescribe a framework’ within which preferential procurement policies may be implemented to ‘protect or advance’ the disadvantage.

The Regulations allowed organs of state to set ‘pre-qualifying criteria’, under which a company wanting to tender for a contract had to have ‘a stipulated minimum BEE status level’ if it was to be considered at all. In practice, this minimum was often set at 51% (or even at 100%) BEE ownership, even though the ownership target under the BEE generic codes is 25%.

These pre-qualification criteria were unconstitutional. They also made for inflated pricing and poor delivery as many businesses with competitively priced and high-quality products were excluded from tendering. This also helps explain why the state’s contract prices are often so absurdly high: R40m for a school that should have cost R15m, as Pravin Gordhan said in 2009, R27 for a bottle of water that should have cost R7, as Gwede Mantashe added in 2012, and a staggering R238 000 for a wooden mop, as Eskom reported in 2021.

The immediate effect of the judgment is that 51% BEE ownership requirements and other pre-qualification criteria earlier imposed under the minister’s Regulations can no longer be applied in public procurement. Does it also mean that the Constitutional Court is becoming more alive to the negative practical effects of preferential procurement policies?

[GCE]

There has being a directive issued by National Treasury in response to the court ruling

Unfortunately my feeling is that the knee jerk reaction from government appears to have made things worse and will have a massive short term effect of contracts awarded and service delivery.
As far as I am aware all organs of state , municipalities etc will have to adhere to

Normally there are numerous tenders that come out at this time of the year because of year ends and projects having to start in the present financial year which ends in June

I have attached the directive

The basics out of the directive as copied and pasted from the directive are

While awaiting the outcome of the above guidance from the Constitutional Court , organs of state are advised that -
- Tenders advertised before 16th February 2022 be finalized in terms of the Procurement Regulations
- tenders advertised on or after 16 February 2022 be held in abeyance ; and
- no new tenders be advertised

[Blurock]

While awaiting the outcome of the above guidance from the Constitutional Court , organs of state are advised that -
- Tenders advertised before 16th February 2022 be finalized in terms of the Procurement Regulations
- tenders advertised on or after 16 February 2022 be held in abeyance ; and
- no new tenders be advertised

There is obviously a very easy way to settle this problem. Adhere to the court's judgment and immediately Scrap BEE! It is unconstitutional, illegal and it has the effect of inflating prices and poor delivery as many businesses with competitively priced and high-quality products are being excluded from tendering.

Only the connected elite benefit from BEE, the vast majority of the black population never will. Worse still, BEE policies are actively sabotaging the prospects of South Africa’s mostly black poor and unemployed citizens to navigate a way out of their dire situation.

[Dave A]

It appears National Treasury would rather government procurement comes to a halt than abandon their preferential procurement policy allowing total exclusion below level 2 BEE status.

[Blurock]

It appears National Treasury would rather government procurement comes to a halt than abandon their preferential procurement policy allowing total exclusion below level 2 BEE status.

The kleptocracy continues. BEE is a licence for the pirates of the Ain't No Consequences party to keep stealing from the South African public.

BEE businessman who explained why tender prices were often so inflated: ‘You pay to be introduced to the political principals,’ he said. ‘You pay to get a tender, you pay to be paid [for completed work], and you must also “grease the machinery”. From time to time, you are called upon to make donations to the…ANC. There are also donations to the youth league, the women’s league, and the SACP.’ Those who failed to make the necessary payments either in cash or ‘in kind’ – by giving sub-contracts to the relatives of public servants and politicians – would find themselves excluded from state contracts worth many millions of rands.

That explains the absurdly inflated state tenders: R40m for a school that should have cost R15m, R27 for a bottle of water that should have cost R7, and a staggering R238 000 for a wooden mop, as Eskom reported in 2021.

Everyone knows what the problem is but nobody is prepared to do something about it. It is time for the courts and business people to strike down this evil policy of a kleptocratic government.

Even the SACP has identified the system as the primary reason for mounting inequality since 1994.
In 2017 the party warned that the ‘intra-African inequality’ which BEE has fostered is ‘the main contributor to South Africa’s extraordinarily high Gini coefficient’ of income inequality. Added the SACP: ‘Enriching a select BEE few via share deals…or (worse still) looting public property…in the name of broad-based black empowerment is resulting in….increasing poverty for the majority, increasing racial inequality, and persisting mass unemployment.’

[JohnMasumba]

Am actually finding that my White friends get upset at the mention of BBBEE, and my more melanin-enriched friends prefer not to talk about it at all.

[Blurock]

Am actually finding that my White friends get upset at the mention of BBBEE, and my more melanin-enriched friends prefer not to talk about it at all.

My experience of BBBEE: In 2012 we started a factory to manufacture products that were mainly imported and sold locally by international companies who dominated the market.
The company was formed with the purpose of creating local jobs and manufacturing skills. Our aim was also to enter the export market to generate revenue to SA. in 2018 we were nominated in 3 categories as exporter of the year and awarded winner in one.
51% of the shares were allocated to our MD, a black South African who had work experience in the USA. The DTI was elated and came to visit us on several occasions, but not one cent of support or orders came from government. We had one of the best products on the market and built a brand known for quality and innovation. We eventually ran out of money because our BBBEE partner was not politically connected and could not raise any funds or orders.

The corporate pirates who then came in as equity investors eventually hijacked our business by not paying creditors, salaries & wages. They eventually appointed two BBBEE partners who came in as investors but no-one had any manufacturing skills or the ability to run such a technical business. After a period of declining sales because of poor quality and mismanagement, the BBBEE partnership was disolved and 70 empoyess were retrenched. Today this business exist in name only. The share price of the holding company fell from R18 to R1.10. In a matter of onlly 5 years they managed to destroy a very successful business with innovative products and decimated a workforce who were adequately trained in a number of skills.

I am all for equal opportunity and uplifting the poor, but none of the poor have benefitted from BBBEE. We have a duty to create not only jobs, but skills to save this country. BBBEE is nothing but corporate greed enriching the politically connected who does not care to steal the bread from their workers and their families. BBBEE = corruption!

[Blurock]

It is encouraging to see that more and more people are realising that BEE is wrong and is holding back the necessary growth and development to generate jobs and prosperity for ALL South Africans.

At the Built Environment Indaba on April 10, Danny Masimene, president of the Black Business Council for the Built Environment (BBCBE), delivered a bold critique of South Africa’s post-Apartheid progress. He declared that after more than 30 years of democracy, the country can no longer blame Apartheid for its economic woes. Instead, he held the black-led government – especially the ANC, which has ruled since 1994 – responsible for the persistent inequality and widespread failures.
Masimene asked, “What have we achieved?” and pointed to national debt, unemployment, poor service delivery, corruption, crime, a weak rand, and diplomatic strain as symptoms of mismanagement. Despite these issues, he argued for renewed commitment to transformation efforts like Broad-Based Black Economic Empowerment (B-BBEE), though he acknowledged they have mostly enriched a small elite rather than the broader black population.
He blamed poor implementation, saying the officials trusted with these policies have not acted with urgency or accountability. Financial sector transformation was singled out as sluggish, with black businesses still struggling for support. Public procurement processes were also criticised, as tenders are often awarded and then rescinded due to financial conditions, creating uncertainty and inefficiency.[/COLOR][COLOR=rgba(0, 0, 0, 0.9)]
Masimene was especially critical of Development Finance Institutions (DFIs), accusing them of mimicking commercial banks’ strict lending criteria, which undermines their purpose. He warned that without urgent financial sector reform, transformation would stall completely.
In closing, Masimene argued that while political freedom was won in 1994, true economic and social freedom for black South Africans remains elusive. He called for honest reflection, stronger financial support, and better governance to turn transformation from a failed promise into a meaningful reality.
Apartheid was never a valid excuse for the ANC’s economic failures to begin with.
Summary from Creamers Engineering News.