Paul Janisch

Nafcoc to launch black-owned bank

THE National African Federated Chamber of Commerce and Industry (Nafcoc) plans to launch a mass market, black-owned "mega" bank this year that will mimic the Chinese model and grow small businesses.

via www.businessday.co.za

This is the best news I've read in weeks. We need this - please launch this thing NAFCOC.

The Debswana story: a PPP success (what about us?)

As the rest of Africa was plundering its mineral wealth through nationalisation and mismanaged parastatals, Botswana chose the PPP path and stuck to it.  Moreover, the wealth from the Debswana partnership was used wisely and did not act as a catalyst for unnecessarily grandiose projects and an orgy of looting.  Through Debswana, Botswana has topped the world diamond sales league by value. Critics may say that other countries in Africa (Ivory Coast is a good example) have achieved the same status with other natural wealth with or without a 50-50 PPP. But the difference is that the fruits from the Debswana PPP have been channelled to successfully develop a once dirt-poor country.  Of course, the fact that the Debswana arrangement has worked for Botswana does not mean that we close our eyes to its unedifying aspects.  

But the broad picture indicates that in comparative terms, the Debswana arrangement has worked well for Botswana.  Crucial in this success has been fairly good management and the fact that our leaders have not been corporate raiders and pirates voraciously feeding off state resources like famished hyenas.

via www.mmegi.bw

Very interesting.  A successful PPP.

On the subject of PPPs, this is an email I got from a partner who did not want to even contemplate bidding for a PPP

From: A person

Sent: 17 April 2012 10:09 AM
To: Another person
Subject: Re: RFP GSM/12/03/0428 - Transaction Advisor for proposed Durban Dig-Out Port

The reality is that it wouldn't pass our bid/no bid criteria on the basis of chances of winning, so a no in this instance.

From: Another person
Sent: Tuesday, April 17, 2012 08:33 AM
To: A person
Subject: RE: RFP GSM/12/03/0428 - Transaction Advisor for proposed Durban Dig-Out Port 
 
I understand that concern but it is a massive project and they don’t come around too often. 
We would not fund the bid costs and therefore it is no problem if you elect not to bid.

This same sentiment is echoed in a FM Supplement, conveniently entitled Infrastructure.

Companies have expressed frustration with abandoned processes and policy flips. Moreover, the money that they pump into tenders has been wasted. Basil Read, which is part of the consortium that won the tender to build the R10bn N1/N2 winelands toll road, had been working to win it for over 10 years. Government's freeze on all new toll roads makes its future uncertain.

"Recent experience with PPPs has not been good. We have spent tens of millions preparing tender proposals which, in some cases, have not even been opened. But with limited state funding, they will have to be an option in one form or another," M&R's Henry Laas says.

The financial costs of bidding are not mitigated against the likelihood of succeeding.  Many believe that the bid will never be awarded and so can't justify the expense.  Who has the money and personnel to sit on a bid for 10 years?

An unfortunate feature of the stagnant Zuma government (probably inherited it from Mbeki who was a big a failure).

 

Tax money and welfare

According to Atud’s research 16 million people are dependent on the state to live‚ which takes up 32% of the national GDP expenditure. Ten million children are dependent on grant support and 2.5 million elderly people are beneficiaries of old age grants.

via www.businesslive.co.za

This can't be sustainable. It's exacerbated by gross mismanagement and corruption. And all of this is paid for by about 5% of the population.

Is the BBC legitimate at all

A letter to the Business Times this weekend was quite enlightening. Written by Zanele Gasa who is a Prasa board member.  She dismisses Zungu completely (as she should - but it's better if it comes from a black person not me) with

"The BBC's spurious and attention-seeking claims are unfortunate and achieve nothing other than bringing the programme into disrepute."

Bang on the money here.   But perhaps the conclusion of the letter is the most relevant.  She write "Where was the BBC at these engagements?" The engagements refers to market engagements that Prasa convened prior to issue the rolling stock fleet renewal programme (RSFRP).

Hmmmm - perhaps this is an analogy of how the entitlement mentality might work.  Something like we don't want to work on anything we want you to give it to us.  A sentiment Nkadimeng might endorse.

 

Government is closing BEE loopholes (that they themselves don't understand)

“This system is a voluntary one,” said Van Wyk. “If this thing is going to be forced down their throats, corporate South Africa is going to walk away.”

via mg.co.za

This is Chris' response to this quote "It (the new codes" recommends that all companies with less than 40 points on the scorecard be rendered noncompliant, meaning that all companies with a current level eight (the lowest compliance level) would lose their BBBEE status altogether."

He's completely right. If you can't get on the scorecard at all then why bother. The playing fields will be completely even - so no one will bother.

I wonder if the IT world would take me back.................

Black Business Council may take govt to Concourt - (no they won't)

The Black Business Council may take the government to the Constitutional Court over a procurement process it believes to be unfair, spokesman Sandile Zungu said on Monday.

“We are quite keen to test... are set asides unconstitutional when the Constitution allows affirmative action? It doesn't make any sense,” BBC secretary Zungu said in Johannesburg.

“Set asides” refers to a certain category of work in a government contract being set aside for specific group, for example women, or blacks.

“Set asides is basically saying this volume of work will be left for this category of people,” Zungu said.

However, the National Treasury has said set asides are unconstitutional.

“They said specifically it would be unconstitutional. They... will not base their procurement practices on the standards of set asides, so we have to test that.”

Zungu said Treasury believed anyone should be able to apply for a contract, and if one could fulfil the price, one could do the work.

This meant the state's buying power was not being used to transform the economy.

via www.moneyweb.co.za

Do it, I fucking dare you. It is alarming how the BBC insists in portraying itself as a bunch of disgruntled losers who use the race card to get their way. But it is heartening to see how few people take them seriously. Maybe a little court case will cause people to pay attention.

How to issue EME certificates (if you are an accounting officer or auditor)

When confirming the validity of such a certificate, the following should be detailed on the face of the certificate:

• The Auditor's/Accounting Officer's letter head with full contact details;
• The Auditor's/Accounting Officer's practice numbers;
• The name and the physical location of the measured entity;
• The registration number and, where applicable, the VAT number of the measured entity;
• The date of issue and expiry;
• The B-BBEE status level of contribution (level 4 or 3 as the case may be)
• The total black shareholding and total black female shareholding.

Taken from a circular from Treasury dated the 29th of February, 2012.  It's important to follow these guidelines because a certificate may not be accepted by a bid committee.

 

When do the ICT Charter and Property Charter begin to be operational – from SANAS (and new targets)

From: Phinda Ndabula [mailto:[email protected]]

Sent: After the charters were gazetted

Subject: RE: Property Charter

As far as I understand Sector Codes are not gazetted today and applicable tomorrow there is always an effective date with them. I have not read the sector code yet therefore I cannot comment on whether there is an effective date in it but the logic is that if it is gazetted today no one has implemented it yet thus no one can be evaluated on it until they have been given time to implement it.

Phinda Ndabula

Field Manager: BBBEE

Tel: +27 (0) 12 394 3861 / Fax: +27 (0) 12 394 4861 / E-mail: [email protected] / Website: www.sanas.co.za

the dti Campus, Building G, Ground Floor, 77 Meintjies Street, Sunnyside, 0132

-----------------------------------------------------------------------------------------------------------------------

So spake Phinda today. This makes sense. Both the Property Charter and ICT Charter have come out in the last week or so. The preamble to the ICT Charter says

This Notice is effective from the date of publishing and means that the ICT Sector Code is binding on all stakeholders operating in the ICT Sector.

I understand this as being that from that date of gazetting the charter comes into effect. You start measuring from today onwards. My ICT client that has been measured up until January is going to be rated under the DTI's codes within the next couple of weeks. That's fair enough. Although whatever you do DO NOT ASK Andile Tlhoaéle for advice, it will be wrong on all levels – although I'm sure he'll mention the words "measured entity" at least 852 times in answering.

Then there are those that are going to concerned about that irritating PLT Keith Levenstein alleging fronting (how are the cases coming along Keith?) because the wrong charter was used. I wouldn't worry about that, he's not that clued up about much. Id est a newsletter he sent out a few weeks' ago tells us that the old targets under EE and procurement still apply. That's not what I heard (although I'd love to believe our resident expert). It seems that Phinda sent out an email on the 30^th of May stating that even though the new targets come in at a very strange time (like half way through a calendar month!!), they still apply.

Y'see Keith – what you need is friends in the industry who send you this information. Must be lonely where you are.  Also Keith - you've had more than enough time to send out a correction to your incorrect posting.

Of course – no official notice has been sent out by the DTI. And this makes me wonder whether the same notice was sent to the IRBA. Perhaps a little more official clarity would be appreciated.

----------------------------------------------------------------------------------------------

From: Phinda Ndabula [mailto:[email protected]]
Sent: 30 May 2012 01:43 PM

To: Dees Dhanraj

Subject: FW: New Targets

Greetings

Please note that as per the e-mail below the dti wishes to retract its earlier e-mail on the applicability of the Year 6 targets.

Kind Regards

Phinda Ndabula

Field Manager: BBBEE

Tel: +27 (0) 12 394 3861 / Fax: +27 (0) 12 394 4861 / E-mail: [email protected] / Website: www.sanas.co.za

the dti Campus, Building G, Ground Floor, 77 Meintjies Street, Sunnyside, 0132

--------

From: Makhosazana Seate [mailto:[email protected]]

Sent: 30 May 2012 12:00 PM

To: Phinda Ndabula

Cc: Mashudu Mannde (he's from the DTI)

Subject: Fwd: New Targets

Dear Phinda,

The above subject refers. Kindly find below and disseminate to all accredited verification agencies.

With regards to the clarification on the subject matter, kindly note that the dti is in the process of issuing an official announcement in due course. It is therefore requested that any communiqué issued after the gazetted notice should be ignored until an official announcement is issued by the dti.

Kind regards,

Ms Makhosazana Seate

BEE Director

The Department of Trade and Industry

Tel: +27 12 394 1694

Fax: +27 12 394 2630

Cell: 074 172 2096

e-mail: [email protected]

Not this dweet again

Steering committee deputy chairman, Andile Tlhoaéle, says the market has always known the charter is on its way and the 30% ownership requirement did not come out of the blue. The transformation issues that faced the sector seven years ago are still relevant today, he adds.

Tlhoaéle says the charter provides companies with a framework against which empowerment can be measured, and it will unlock opportunities as it requires investment in skills. In addition, there will be larger consumption of ICT products and services.

He says the focus on the charter is on increasing the base as there is less emphasis on ownership and more on other aspects of the scorecard, such as skills development. This will increase the skills base and bolster the sector.

The charter will entrench a lot of redesign on how companies do business and develop skills, says Tlhoaéle. “Let's get the most out of it.”

via www.moneyweb.co.za

This is the same guy who shot his mouth off on TV about white women and demonstrated his clear lack of understanding for all matters empowerment. And they put him on the steering committee of the ICT Charter. Fire him for good, for fuck's sake.

Why, Rob, why?

ZungGwabber politely assessed by Chris Barron. And the ICT Charter

(Sandile Zungu's) contemptuous attitude to BEE hand-outs is rich given that he himself was only too keen to accept what would have been one of the biggest hand-outs in the history of BEE through a stake in the Ayigobi consortium which he was invited to join shortly before it scored an R800-million deal with ArcelorMittal SA.

Sadly for him, and for one of Zuma's sons who was another member of the well-connected consortium, the deal went sour.

Zungu was widely reported at the time as conceding that it was "money for jam".

He denies that he said that, but there is little doubt that he is, in the words of BEE authority Reg Rumney, "one of these guys who's always been in the right place at the right time". (Yes but will he when Zoomer is booted out?)

via www.businesslive.co.za

The contemptuousness refers to Prasa's Lucky Montana telling Zungu and his BBC ilk to mind their own business when it comes to the fleet renewal tender.  A little different to what I thought the BBC were up to with the Prasa fleet renewal programme. They are a complete waste of time.  

On the subject of a waste of time (even though we will have to waste our time with it), Rob has gazetted the ICT Charter under section 9 (1).  Gazette number 35423.  He's known about it for two months plus - now we know about it.