Up until now all the posts on this blog have been very subjective and often emotional. I have been very fortunate to be given this presentation by King Percy Abelkop. Percy is a pseudonym - as if you didn't know. He's also not involved in the BEE industry which makes his objectivity is most welcome. I will say that his conclusions are similar to mine which makes posting this presentation much easier.
This is the kind of presentation that we used to see in the early days when there was a real depth of skill in this industry. It shows a mature level of understanding and interestingly includes a wide variety of statistics that would have been very useful to the DTI had they actually conducted some research on the current status of the codes. Percy argues that there has not been enough research into the current state of BEE, in fact he shows that the EmpowerDex graph that Rob has in his presentation shows an improvement across the scorecard. That Rob didn't notice this when he made his presentation cannot come as a surprise.
He concludes with this sentence
(The) Revised Codes comes across as a thinly veiled attempt perpetuate benefit extraction for elites
This is the same sentiment that I expressed in a prior post. I got the idea for this post from Percy - who laughed over the phone at the lamentable emphasis on addressing real issues and the extension of the wealth of the elite.
A few significant Percy points
- Number of individual shareholders in the economy is unknown – surely you do this research before you start reviewing codes. How has BEE improved ownership participation? If so, by how much?
- The insistence on value-adding suppliers is an attempt to prevent tenderpreneurism.
- Skills Development, in its natural form, benefits only the employed - 13.3 million (41% of Working Age Population)
- Because it is measured primarily based on Rand spend, it favours the upper quartile of that base because higher order skills are more expensive
He concludes with this slide
Please download the presentation and use it in your interaction with the DTI.
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