Paul Janisch

Treasury on the FSC

Taken from "National Treasury Policy Document. A safer financial sector to serve South Africa better (23 February 2011)".  Page 64 to be specific.

The FSC allows for a comprehensive mid-term review of its target to take into account achievements by the financial sector against the targets and to adjust the targets in line with existing challenges. The Financial Sector Charter Council, constituted to oversee implementation of the Charter between 2004 and 2014, is redrafting the Charter as the Financial Sector Code in terms of the Broad-based Black Economic Empowerment (B-BBEE) Act 53 of 2003.  The draft code aims at aligning the FSC with the B-BBEE Act Codes of Good Practice, which were gazetted in 2007, well after the launch of the FSC.  After making significant progress from inception until 2007, the Charter process broke down over negotiations to amend it to meet the new B-BBEE requirements. This delay slowed the process of transformation, but now, after three years, the dispute over equity ownership appears to have been resolved.   Phase one of the draft code, which represents an agreement mainly on the ownership element, was gazetted for comment end 2010. It is envisaged that phase two of the code...............will be gazetted for comment mid-2011.

ANC against 'disturbing' Manyi comments

"We want to categorically put on record that the remarks made by Manyi neither represent ANC nor government policy," party spokesperson Jackson Mthembu said in a statement on Friday.

"Based on the Freedom Charter which espouses non-racialism as a guiding principle, the ANC together with all our people, including the coloured community, has fought for the liberation of all South Africans to live freely wherever they desire in the country," he said.

via www.news24.com

Well, well, well. You must read the article in the latest FM (http://www.fm.co.za/Article.aspx?id=135468) about the ANC and the western Cape. They are fucking up so fantastically.

Rob's getting the TriplePeeEffAye on track

The interdepartmental task team reviewing the Preferential Procurement Policy Framework Act regulations had concluded its work and the recommended amendments were before the Cabinet.

via www.businessday.co.za

There's been a bit of press on this - even the ultra sharp Andile Tlhoaele, an expert on empowerment legislation, has been talking about this.

This is going to be very interesting reading when it comes out.  Bet you I'll be an expert before Andile is.

 

jungle (good) lore(d)

Did I not suggest that jungle would ultimately hang himself.  I am now even more convinced that he will.  Y'see no one (except for a few mense in power) likes him.  We all know that he is

1. A racist (and not a very good one at that)
2. Incompetent (the stories run rampant about his so-called "corporate" past)
3. An extreme racist
4. An ignoramus
5. A rabid racist

Now jungle's racism is nothing unique - as it turns out he got all his great ideas from grand apartheid.

Our zero went on TV (last year and not in his current position) and told Freek that the coloureds were over concentrated in the western Cape.  

"I think its very important for coloured people in this country to understand that South Africa belongs to them in totality, not just the Western Cape. 
"So this over-concentration of coloureds in the Western Cape is not working for them.

 Wasn't apartheid rather like this, or the Indian Reservations in the USA?  A certain race is in a certain place and you don't want them there - easy, move them.  Only jungle tries to couch this in some sort of economic necessity (I'm not going to point out his stunning grammatical foute - feel free to observe these yourself)

There's a requirement of coloureds in Limpopo, there's a requirement of coloureds everywhere else in the country.

And how do you solve this, jungle style.

"They should spread in the rest of the country ... so they must stop this over-concentration situation because they are in over-supply where they are so you must look into the country and see where you can meet the supply."

My oh my (actually I really wanted to write MY FUCK!!!!!!!!!!!!!!!!!!)

I'm no Pierre de Vos so I'll limit my Constitutional comments to section 21

Freedom of movement and residence    

1. Everyone has the right to freedom of movement.    
2. Everyone has the right to leave the Republic.  
3. Every citizen has the right to enter, to remain in and to reside anywhere in, the Republic.    
4. Every citizen has the right to a passport.  

Oh jungle will argue that it is racists who made them stay there and now they should move.  But the informed few will once again sigh deeply and look away in embarrassment.  However we are in for a very humorous ride with him the official mouthpiece of the government - as if Zumachine Gatdoesn't have enough problems on his hands, and it's an election year).

If you don't believe me then watch below (better hurry before the Zumatics take it down).

jungle's defence to this.

"This was the BMF position. I have no feelings on any issue. I speak as BMF chairman or as the government spokesman,"

How on earth can either of these two (caring and competent) institutions have such a ........... speaking for them?

 

Amendment to codes 600, 700 and a few others (oops - they're for comment)

There are big changes afoot and Rob's leading the charge. He told us a few days ago that he was going to do this and he has now started.  (Thanks Obed for sending me this).

 

 NOTICE 88 OF 2011

(Government Gazette 34019)

DEPARTMENT OF TRADE AND INDUSTRY

AMENDMENT OF THE CODES OF GOOD PRACTICE PUBLISHED IN GAZETTE NUMBER 29617 ON 9 FEBRUARY 2007 IN TERMS OF THE BROAD - BASED BLACK ECONOMIC EMPOWERMENT ACT, 2003 (Act No. 53 OF 2003)

By virtue of the powers vested in me in terms of section 9 of the abovementioned Act, I, Dr. Rob Davies, hereby amend the Codes of Good Practice as set out in the Schedule.

(Signed)

Dr ROB DAVIES, MP

MINISTER OF TRADE AND INDUSTRY

GENERAL EXPLANATORY NOTE:

[      ] Words in bold type in square brackets indicate deletions from existing enactments.

         Words underlined with a solid line indicate insertions into existing enactments.

SCHEDULE

1.

Amendment of paragraph 3 of Code 600, Statement 600 - The General Principles fur Measuring Enterprise Development Element

Paragraph 5 of Code 600. Statement 600 is hereby amended by the substitution for paragraph 3 2.8.3 of the following

"3.2.8,3 settlement of accounts with beneficiary entities over a shorter period of time in relation to the Measured Entity's normal payment period, provided the shorter payment period is no longer than [10] 15 days"

2.

Amendment of paragraph 2 of Code 600, Statement 600 - The General Principles for Measuring Enterprise Development Element

Paragraph 2 of Code 600. Statement 600 is hereby amended by the substitution for paragraph 2.2 of the following.

"2.2 the following table represents the criteria and method used for deriving a score for enterprise Development under this statement:

Criteria	Weighting Points	Compliance Target
[Average annual] Annual value of all Enterprise Development Contributions and Sector Specific Programmes made by the Measured Entity as a percentage of the target.	15	3% of NPAT

3.

Amendment of paragraph 3 of Code 600, Statement 600 - The General Principles for Measuring Enterprise Development Element

Paragraph 3 of Code 600, Statement 600 is hereby amended by the substitution for paragraph 3.1.2 of the following:

"3.1.2 Qualifying Enterprise Development Contributions of any Measured Entity are recognisable [cumulatively] on an annual basis"

4.

Amendment of paragraph 2 of Code 700, Statement 700 - The General Principles for Measuring the Socio Economic Development Element

Paragraph 2 of Code 700. Statement 700 is hereby amended by the substitution for paragraph 2.3 of the following:

"2.3 The following table represents the criteria and method used for deriving a score for Socio Economic Development under this statement:

Criteria	Weighting Points	Compliance Target
[Average annual] Annual value of all Socio Economic Development Contributions by the Measured Entity as a percentage of the target.	5	1% of NPAT

5.

Amendment of paragraph 3 of Code 700, Statement 700 - The General Principles for Measuring the Socio Economic Development Element

Paragraph 3 of Code 700. Statement 700 is hereby amended by the substitution for paragraph 3.1.2 of the following:

"3.1.2 Socio Economic Development Contributions of any Measured Entity are recognisable [cumutatively – (sic)] on an annual basts (sic again)"

6.

Amendment of paragraph 7 of Code 800, Statement 806 - Enterprise Development for QSE's

Paragraph 7 of Code 800, Statement 806 is hereby amended by the substitution for paragraph 7.1.2 of the following:

"7.1.2 The following table represents the criteria and method used for deriving a score for approved projects and enterprise development under this statement:

Criteria	Weighting Points	Compliance Target
[Average annual] Annual value of all Enterprise Development Contributions and Sector Specific Programmes made by the Measured Entity as a percentage of the target.	25	2% of NPAT

7.

Amendment of paragraph 8 of Code 800, Statement 807 - Socio Economic Development Contribution for QSE's

Paragraph 8 of Code 800, Statement 807 is hereby amended by the substitution for paragraph 8.1.2 of the following:

"8.1 2 The following table represents the criteria and method used for deriving a score for socio economic development under this statement:

Criteria	Weighting Points	Compliance Target
[Average annual] Annual value of all Socio Economic Development Contributions by the Measured Entity as a percentage of the target.	25	1% of NPAT

Now here's a question. The DTI issued a tender for interested companies to provide a study of the codes (take a look at paragraph 2.1) – and Rob has already started amending. Can we assume that this work has already been done and that the tender was a mere formality. It seems VERY strange that Rob is on the amending path when he might have to change everything again in the next year. Hmmmmmmmmmmmmmmmmmmmmm

Call for Proposals: Review of B-BBEE Legislation and Verification System – as per the DTI

The deadline for this is this Friday (11^th of Feb, 2011). It's too late for me to submit a bid, but if anyone is interested in subcontracting me on this programme – I AM VERY INTERESTED IN DOING THIS.

On 21 January 2011, the dti published, in the Government Tender Bulletin, a tender to invite service providers to assist with the review and improvement of the existing B-BBEE framework.

The review of the B-BBEE framework will include the following:

• Review of the current B-BBEE Act, with the aim of recommending possible improvements thereto. In respect of this, the appointed service provider shall present to the Chief Director of the BEE Unit:
  • A draft report containing recommendations on the aspects of the Act for possible review; and
  • A draft amendment Act that incorporates all the proposed improvements.
• Refining provisions and parts of the B-BBEE Codes of Good Practice, with a view to rectifying/enhancing them. These improved inputs, from the selected service provider, will be added to those reviewed by the dti. In respect of this, the appointed service provider shall present to the Chief Director: BEE Unit:
  • A draft report with recommended provisions on the areas of the Codes requiring rectification.
  • Investigating and recommending to the dti, effective legal instruments for the regulation of the B-BBEE Verification Industry, including recommendations for the creation of a regulated industry body for verification. In respect of this, the appointed service providers shall present to the Chief Director: BEE Unit:
  • A draft report including a recommended model for a statutory body;
  • Recommendations on the amendment of the Act in regulating the Verification Industry; and
  • Recommendations on possible amendments/improvements to the contents of the Verification Manual, to incorporate rectifications of the Codes.

Bid documents for these services are available at:

the dti Campus

Block B

Reception, Ground Floor

77 Meintjies Street

Sunnyside

Pretoria

0001

This is huge. And it must be done properly, we have to ensure that entrepreneurship and skills are prioritised, not Zungu's uninformed bullshit about ownership and management.

jungle swings to another post

It would be completely wrong not to comment on jungle's new post.  I think it's brilliant - he was far to0 dangerous in the labour department, so him uttering government policy is fantastic.  He is very opinionated about topics that he knows or understands very little about - this is perfect for him, he doesn't even have to think about what he's saying.

By all accounts he's not the most competent person at much, this is the rope (or perhaps vine)  that he will need to hang himself.

Go on jungle - prove me wrong here.

How do we identify black? Simple, the JSE has become the guardian of such things

A few years ago Levin Kester hosted a very entertaining course on that flawlessly authored document – the BEE verification manual. He went through the whole thing and unfortunately didn't show how much a verification would cost if you had to follow it to the letter. Anyway one of the things that he did touch on was that of an ID book. He showed us a copy of his ID book with a picture of him that only a mother could love. He then asked a very pertinent question – id est. "How do you know what race I am?" Many people volunteered an answer ranging from the last digit through to the whole number etc. The correct answer is of course – the picture. He told us that ID numbers stopped considering race in the late 80s. I did a little research on this and came across this website.

 

By the early 80s, through the creation of independent homelands (or Bantustans), Blacks were no longer considered 'true' citizens of the Republic. The remaining citizens of South Africa were classified according to eight categories: White, Cape Coloured, Malay, Griqua, Chinese, Indian, Other Asian, and Other Coloured. The South African Identity Number was 13 digits long. The first six digits gave the birth date of the holder (year, month, and date). The next four digits acted as a serial number to distinguish people born on the same day, and to differentiate between the sexes: digits 0000 to 4999 were for females, 5000 to 9999 for males. The eleventh digit indicated whether the holder was a SA citizen (0) or not (1) - the latter for foreigners who had rights of residency. The penultimate digit recorded race, according to the above list - from Whites (0) to Other Coloured (7). The final digit of the ID number was an arithmetical control (like the last digit on ISBN numbers).

But this all changed in 1987 with the Identification Act No 72 of 1986 (commenced 1 July) which repealed the Blacks (Abolition of Passes and Co-ordination of Documents) Act No 67 of 1952 and amended parts of the Population Registration Act No 30 of 1950 such that Identification Numbers no longer reflected a person's racial group.

Now we know. And the JSE? Well the JSE has set up a BEE segment on the main board, with SASOL being the first company to make use of this. It's also backed up by an amendment to the Securities Services Act. I can't pretend that the amendment makes for great bedside reading, but it does contain a variety of definitions that need to be looked at. I'm not going to bother with the definition of a black company but concentrate on the definitions of natural people. Here we go

"BEE compliant person" - (a) as regards a natural person, one who falls within the ambit of the definition of "black people" in the BEE Codes. For the new readers to this blog I'll use the definition contained in the codes

Black people' has the meaning defined in the Act qualified as including only natural persons who are citizens of the Republic of South Africa by birth or descent: or are citizens of the republic of South Africa by naturalisation:

(a) occurring before the commencement date of the constitution of the j Republic of South Africa Act of 1993; or

(a) (sic) occurring after the commencement date of the Constitution of the i Republic of South Africa Act of 1993. but who, without the Apartheid policy j would have qualified for naturalisation before then;

The only remaining question here is if we have no litmus test to determine blackness, whiteness, Indianness (you get the picture) then how is the JSE going to be in a position to bar people who choose to participate in this scheme? Are they now given the sole powers to look at an ID picture and say – OK you look black so you can play;  hey whitey! get the hell off this board!!

Are we inviting a little legal challenge at some stage?  Probably.