OLD or NEW South Africa

[Greig Whitton]

I accept what you are saying however in those countries they do not state that you must only hire locals. Yes in other countries they require the nationals to own a certain percentage, however the national is not stated to be from a specific race group as is the case here.

Please reference the local legislation that COMPELS all South African private enterprises to allocate a specific portion of ownership to particular race groups.

In Portugal, as a foreigner that opens a business must have a minimum 40% of the business owned by a local person, irrespective of their race, and many many Portuguese citizens were originally from Africa. The same goes for other European countries. I think that there is a major difference to what we are experiencing here.

The application of affirmative action around the world is a lot more complex than how you are presenting it and is not limited to race or ethnicity. Bottom line: many countries, South Africa included, implement affirmative action policies that favour some demographic groups over others because there are social imbalances.

[Justloadit]

Please reference the local legislation that COMPELS all South African private enterprises to allocate a specific portion of ownership to particular race groups.

With respect to the new amended codes, If you want to get business from corporates so that you can earn a living, one will have to follow the new amended codes, copied from "EconoBEE
011 483 1190".
The majority of companies will reach a maximum of 4 points if not fully black owned owned with full senior black managers.
So business will get more and more difficult if you are not with in the new amended BEE codes. In fact most business who had high scores before the new codes will be very surprised to note that they will have dropped down by a number of points under the new amended codes.

Code 100 -Ownership:Points available: 25
–Awards points for black participants in the ownership of the enterprise.
–Takes into account:
–Voting Rights
–Economic Interest
–More points for:
–Black women, ESOPS, broad-based schemes
–Is a priority element –drop one level if insufficient ownership

Do you need Black Ownership?
–Are your customers asking you if you have black ownership?
–Do you supply the mining sector?
–Will Black Ownership result in more business?
–Do you need additional finance to grow your business?
–Do you need additional management capabilities?
–Do you need access to government business?

How much Ownership?
–10% reaches the subminimum on the priority element status
–25+1 vote is the Amended Codes target
–30% black female will assist your customers through the procurement element
–51% black people will assist your customers through the procurement element

[Greig Whitton]

With respect to the new amended codes, If you want to get business from corporates so that you can earn a living, one will have to follow the new amended codes

Nope. Compliance with Broad-Based Black Economic Empowerment is entirely voluntary. I have many clients that supply corporates even though they aren't compliant or have a low B-BBEE score.

[Justloadit]

So if discrimination is also an inevitable product of human nature, does that mean AA can never be abolished?

That's what my conclusion was with the following statement "Maybe, because of the emotion involved with AA/BEE, it may mean that it will be here for eternity."

I have many clients that supply corporates even though they aren't compliant or have a low B-BBEE score.

Can you show some evidence of this.

[Justloadit]

Nope. Compliance with Broad-Based Black Economic Empowerment is entirely voluntary. I have many clients that supply corporates even though they aren't compliant or have a low B-BBEE score.

If you wish to deal with corporates, it may be more difficult to be a supplier with out having a score, and provided you are less than the lower turn over threshold - depending on your industry, unless you are a strategic component supplier that you can continue unabated. If you are over the T/O threshold, law states that you must abide by the BEE codes.

[Greig Whitton]

If you are over the T/O threshold, law states that you must abide by the BEE codes.

Would you mind referencing the legal provision stating that companies over a certain turnover MUST comply with B-BBEE?