The response to my initial request for funds to take these codes on review was a little slow, but about two weeks ago a concerned body approached me and told me that they had raised R400k. We can now get started but we need a lot more money to ensure that we are able to make it to the Constitutional court. And it needs to go to the Constitutional court. Evidence the opening paragraph of an analysis that my attorney drafted.
Writer is of the view that it has now become the responsibility of entrepreneurs and business owners to take the Minister and the DTI to task on their total disregard to due administrative process and non-compliance with the provisions of the Constitution, so as to afford corporate South Africa the opportunity to ensure the establishment of a broad-based black economic empowerment plan that will be meaningful and sustainable and that will afford business owners the opportunity to be measured against a consistent set of rules that are unambiguous and more realistic.
History has shown that this government, like its predecessor, is not reasonable. We have a Constitutional yardstick that is routinely ignored, it's therefore up to us to do something about it before it's too late. Arbitrary law making has serious consequences. A consequence that I hadn't considered properly is the demise of verification agencies themselves. I got this email from a prominent agency, who responded to an email I sent out last night requesting funds
(I'm) fully in support, however not really in a financial position to assist with 60% of our client base being wiped out by the new codes. Will send through to potential interested parties.
I then wrote
The VAs in the outlying areas are going to suffer. If you consider that you have a significant number of Indian owned businesses as clients they may no longer need you. However, Indian owned businesses that turn over more than R50m do need to be concerned because the codes do not allow them to employ their family/community members.
The VA responded
All African, Indian and White owned businesses will fall away as most white owned businesses on the QSE scorecard will probably end up non-compliant, so why bother with a rating and that is all EMEs and QSE's gone.
In effect, our livelihoods are on the line here. And the revised codes are the cause of it. You can't expect Rob to understand this because he's demonstrated very little understanding of anything that he is responsible for. Peter Bruce's BDLive column from this morning provides us with a few more clues as to his ignorance.
THE NEW steel plant I have just referred to is a last gasp for the developmentalists in government. Alec Hogg ran a great interview with Trade & Industry Minister Rob Davies the other day in which he asked him whether he was worried about what appeared to be a new round of companies leaving SA. He wasn't worried. There were lots of companies ready to move in in their place. Phew what a relief.
It's heartening to know that he's not only useless at empowerment related issues, he's clueless across the board.
The overview of the Equitable Transformation Alliance is attached again, please forward it onto anyone you now who would be willing to contribute. We first thought that we'd find a few large donors, this is probably not going to happen so any amount will help.