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WISDOM: Do not dismiss the critics of black economic empowerment, Deputy President Kgalema Motlanthe said at the launch of the new Broad-Based Black Economic Empowerment Council. Picture: GCIS

New body to expedite empowerment

Published: 2010/02/05 06:23:40 AM

WILSON JOHWA

THE government is banking on the recently appointed Broad-Based Black Economic Empowerment Council to speed up implementation of its affirmative action policy.

The government’s economic transformation programme has been blamed for alienating the white community, while creating new social inequalities, especially among its intended beneficiaries.

The 19-member body, which is chaired by President Jacob Zuma , was officially launched yesterday. “We want it to give advice that will lead to action,” said Trade and Industry Minister Rob Davies .

With its members appointed by the president, the council is a statutory body created in terms of the Broad-Based Black Economic Empowerment Act. It replaces a black business working group that advised former president Thabo Mbeki .

“The sense that we all have is that progress of BEE to date has been modest,” Davies said. He said there was a need to review the codes of good practice “to see what is wrong with them, if anything”.

There was a need to conduct research on the effect of black economic empowerment to date, and also on big deals concluded so far.

Standing in for Zuma, Deputy President Kgalema Motlanthe said the government could no longer tolerate the current status of BEE, which in the past 15 years had benefited a handful of individuals.

“Only a few benefited again and again from the bounty of black economic empowerment,” he said. The “truly marginalised” — women, the rural poor, workers and the unemployed — were left on the sidelines.

It was important to look at BBBEE beyond business deals and shareholding in companies, to include equipping people to run their own businesses. “More must be enrolled in skills training and more should have access to arable land.”

The BBBEE council includes Congress of South African Trade Unions president S’dumo Dlamini, Business Unity of SA CEO Jerry Vilakazi, and businessmen Sandile Zungu and Don Mkhwanazi. Other government officials were Economic Development Minister Ebrahim Patel, Labour Minister Membathisi Mdladlana , and M inister of Women, Children and Persons with Disabilities Noluthando Mayende-Sibiya.

The council would meet at least four times a year in plenaries. But it was expected that the bulk of the work would take place through subcommittees to be established when it convened within six weeks .

Motlanthe said it was wrong to think that the government did not want black people to be wealthy, just as it was unwise to dismiss critics of black economic empowerment.

“The critics must accept that the exclusion of a large section of our community from productive participation in the economic life of our society is a significant hindrance to our collective prosperity.”

johwaw@bdfm.co.za

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By: geanann On: Feb 5 2010 3:16PM
BEE has to be expedited the new leaders have hardly had any benefit and now the financiers are baulking at giving money away. Bring on the pressure brigade
By: chirp On: Feb 5 2010 3:33PM
BEE would work properly if they implemented it correctly! Right now all it’s done is serve the greedy desires of the black elitist trough feeders.
By: shannig On: Feb 5 2010 6:54AM
We would all love to see the disempowered getting their place in the sun, and will reach out to help them. But, like Communist "nationalisation", BEE is seriously detrimental to business, foreign investment and local investment (ripped-off pension fund members) -- regardless of whether or not the costs involved are borne voluntarily and even enthusiastically. The costs incurred due to BEE will always militate against returns on investment, and therefore must militate against job creation. Which is the greater common good? What is the ideal balance between job creation via the profit incentive and social responsibility? That is a question Deputy-President Kgalema Motlanthe may well ask himself in his efforts to shift the benefits of BEE away from the creation of undeserved billionaires.
By: The Ethical Induna On: Feb 5 2010 7:24AM
Brilliant. Let's all clap while the new ad hoc committee gathers at some five star harem to negotiate our country further down Verwoerd's road. This colour coding is not growing jobs, it's further isolating the poor who get further away from the centre of power while a handful of so-called experts who haven't made a profit in their entire lives try and tell us how to be good capitalists. Remember to have your SUV's MP3 player on LOUD so you can't hear the pain outside your window, Patel. Next year they're at your door. Like a wolf.
By: The Ethical Induna On: Feb 5 2010 7:26AM
The next round of protests are going to see a disempowered police force which can't shoot straight trying to impose order on a truly non-racial group of people who're going to be aiming at the BEE bigwigs. That will cause a serious seizure of logic for Patel et al, who'll try and suddenly wave his red hat at 'em. It won't work. Power gone. We'll free ourselves with our lighters and our knobblies.
By: What On: Feb 5 2010 7:57AM
The blacks in SA have been held back by the primitive white culture. Look at how prosperous blacks in the rest of Africa are. Seriously, the ANC has no idea how to ran a country, or create jobs.
By: vanysen On: Feb 5 2010 8:44AM
"The sense that we all have is that progress of BEE to date has been modest"... what an uderstatement...all that BEE has done in the past 15 YEARS is, to lose massive amounts of skills at a unimaginable cost to the economy causing huge job losses, exclude 99% of the poor from economic opportunity, & enrich a few elite greedy ANC caders..nothing more nothing less. If I was a poor black living in a township I would be very upset with the ANC right now, very!!!!
By: Solomzi100 On: Feb 5 2010 8:47AM
There should be a limit for empowerment. There should be no BEE credits for multiple beneficiaries. But do you think a multiple benficiary like Zungu can endorse that? There is an inherent conflict of interest. You need fresh people to deal with this.
By: GusMan On: Feb 5 2010 10:06AM
Well if MR Motlanthe asks the right questions to the right people with truthful motives.....based on facts and not "politically correct" FICTION, then SA is headed in the right direction! If the NEW....BEE comes into being in a manner that empowers ALL people involved then let's get on with it! The ANC and the select Billionaires of BEE, should be in jail now as they have "stolen" money that was intended for the masses as per the BEE charter. A crime against humanity(or rather the masses) has been committed worse than Verwords ever did.
By: v3 On: Feb 5 2010 10:06AM
Yet another imposition on the productive sector Yet another diversion of resources into form-filling and compliance instead of focussing on production (the Chinese are laughing) Yet another reason to verneuk the system - in order to avoid penalties and imposts and win tenders Yet another website whose BEE and AA operators cannot make it work (anyone tried Cipro lately?) Yet another D-G, CEO, CFO, COO Yet another sinecure for Manyi clones and Zuma cronies Yet another fleet of 4x4s/BMWs Yet another set of overseas travel (why?) travel and accommodation costs Yet another suite of offices = plus furnishings and IT Yet another set of travel, per diem & sustainance claims Yet another area for fraud Yet another qualified audit report Yet another multi-million rand severance package down the line. Yet another hindrance to our collective prosperity
By: toczin1 On: Feb 5 2010 12:23PM
I wonder if the newly elected members of the "revamped" black business advisory panel are the best the selection. Apart from BUSA's Vilakazi, Zungu & Mkhwanazi, the rest are just expected to any real turn-tables-around value. The government should claim to have established a new council, they just revamped the previous administration's council. Well, let's wait and see. But I still think that real experts in business and government policy (including whites), should have been assembled for this tough task.
 
 


 
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