Oops - have we ruffled the DTI's feathers a little.

The Revised BEE Codes of Good Practice are not Intended to make things difficult

2012-11-16  

The draft codes have elicited widespread support but the department has received feedback expressing alarm that some charitable organisations and beneficiaries will lose benefits associated with the current version of the BEE Codes.  This is not true. The proposed socio- economic development (SED) code encourages charitable organisations who receive CSI funding as a result of BEE policy, to ensure that their beneficiaries are representative of South African Society.
 
the dti therefore wishes to reassure all parties concerned that the intention of the proposed Code is not to raise the bar or make it more difficult for current CSI beneficiaries to score BEE points.

It is however evident from the comments received that the current drafting of the SED Code has led to incorrect perceptions that it is the intention to raise the bar or to prejudice certain individuals. This is not the intention and will be explicitly clarified in the final draft.

via www.thedti.gov.za

Now where has this widespread support come from? Is it from those who have to implement it? I have my absolute doubts. It must have come from those who stand to benefit from it the most. As Percy's presentation points out, more points are allocated to even fewer people.

Then there is the almost bewildered sentiment - "we didn't mean to cause this much harm, really we didn't. We just wrote it in such a way that you would have serious doubts about what we meant. And then if you said nothing we would have been proved right. Of course it's not for us to actually read what we write so you really shouldn't have taken it as badly as you have."

And then they put in this line which negates the whole press release.  Apparently anyone who isn't black does not form part of South African society.  How idiotic is this - and these are the people who have been tasked with the transformation of South Africa.  

The proposed socio- economic development (SED) code encourages charitable organisations who receive CSI funding as a result of BEE policy, to ensure that their beneficiaries are representative of South African Society.

Comments

[Shaun Gibson]

Has anyone done the calculations as to how points will be allocated for Senior and Middle Management representation as well as for the Skills Development element i.r.o. the Rand value spent and number of employees trained? The formula states that each black race group (male and female) is summed as a percentage of the compliance target and then divided by 6 to get an average percentage score. This value is then multiplied by the relevant weighting to calculate the points allocation. In the case of a business that has 100% African Male repesentation (with no Coloured or Indian representation and no black females) the 100% becomes 16.67% which results in a much lower score. Is it possible that the drafters of the revised codes intended to shoot themselves in the foot?

[Paul Janisch]

It is strange - I am formula-fatigued. But I suspect that your analysis is right. If you take a look at the EE calculations you'll see a brilliant typo. On page 25 they say that this stupid formula is for paragraphs 2.3 and 2.4, yet on page 26 the formula is now for all the categories under EE.

I haven't bothered to tell the DTI that their formulas are wrong - I just reminded them what a bunch of idiots they really are.