Paul Janisch

Where are the BEE verification agencies - SANAS ones that is

With the removal of IRBA the number of VAs have dropped from about 450 to 72 (this figure is exact and comes from SANAS' website).  The two graphs below show the split between provinces and which cities they operate in.  I've lumped places like Belville into Cape Town, Benoni into JHB and Centurion into Pretoria etc, this is not an exact breakdown but it gives a good picture.

 

 

 

 

 

 

 

These aren't the clearest graphics.  I can send you a better document if you would like one.  But they show a picture that follows the business demographics of the country.  There are 25 VAs in the whole of the JHB area. That's 25 verification agencies looking after thousands of companies.  It's a massive task.  This VA business is not a pleasant business - SANAS is not a reasonable task master and makes it very difficult for these agencies to operate.  It is an expensive process, my very good friend David Kalmin told me that he was in for over R150k just to get the systems and accreditation done.  The margins are very low and the workload is overwhelming.  And if this wasn't enough you need to look at the amended construction code that has decided that you don't get automatic promotion as an EME or a QSE you need to be verified under skills (this is not quite true but watch almost all small construction companies saying they turned over less than R1.8m or R3m as the case may be).  VAs now have more work than ever.  What happened to that unverified statement from the dti that some black companies were being charge R35k for a BEE certificate?  More on this in another post.

Back to the backlog - we have an undersupply (hey jungle why don't you use that word when you describe your intelligence?) of VAs and bolshie bob wants to limit them even more with his apartheid-style legislation. Does anyone know what happened with that VA proposal?

This is a SANAS and dti issue that needs to be resolved.  We need more VAs and we need to find a way to make it easy for them to come in. As it stands a BEE certificate is unlikely to be issued in two weeks from the date the VA actually starts reading the file.  Think more in terms of six to eight weeks.

Again - my cynical pleas are faktore

 

Trainee Tracking Tool - here's one I created

How SANAS loves its paperwork.  This is a spinoff from bolshie bob's desire to create paperwork and red tape.  How this is going to result in transformation resides only in his red mind.  

The internet was trawled for a trainee tracking tool.  There are some third party systems you can use.  Unfortunately the bee commission doesn't help either - they merely state that every company should develop their own.  This is what I would put in a trainee tracking tool.  Just headings - you can fill in the detail as you go along.  Understand that this is for verification - so you should pad it with lots of documents. ID books, payslips, test results, psycho-analyses, spinal taps and the results of the most recent pencil test.

Trainee Tracking Tool

1. Learner name, ID number, race gender
2. Type of learnership/internship/apprenticeship (name)
3. Ultimate qualification
4. Duration of learnership
5. Date started and anticipated completion date

6. Was the learner employed by the company before the learnership commenced.

7. Progress report (quarterly)
8. Examinations written (date and whether the learner passed)
9. Moderator/assessor’s report on the progress in that quarter

10. Other interventions required to assist the learner (courses, internal training etc)

Signed by moderator/assessor

Date

Good luck using it, tell SANAS I sent you.  And as usual, if you like the tool please send me a mail. In fact I would really appreciate one that has been completed.

Exactly what percentage ownership do you need so as not to be fired

Whilst we wait for Cyril to do something about this abomination known as the BEE codes  I might as well provide my loyal readership with a short tutorial on ownership.

Before I start I need to stress that ownership is not the answer to South Africa's problems.  Well in excess of 95% of all the businesses (whether they be formal or informal) have no intrinsic value.  Their value lies in the person who started that business's energy and effort.  When that person dies, retires or emigrates the chances are that that business will close down.  There might be some value in stock or assets but without that person running it it won't survive.  I can almost see what bolshie bob is spoiling at here. He would say "I am the most useless communist and the scourge of South African business, you are speaking the truth my white monopoly capitalist wannabe.  But if you do a proper handover of ownership and involve black people in the running of the business then it will survive." Too true my Bolshevik brother - but human nature isn't like that.  And no amount of EAPing is going to change it.  You keep on dreaming whilst you enjoy your very generous pension after you have walked away from the mayhem you have caused.

Exactly how much ownership do need so that you don't get fired a level.  The short answer is 10.03%.  Please look at the calculation below.  We know that you need 3.2 points for net value in order not to drop a level.  My rudimentary Excel skills tell me that under perfect circumstances you can get to 3.2 points under formula A with 1% ownership (Acts.co.za is now a subscription site I can't refer you to the formulas).  But you won't get the 3.2 points under formula B and the rule is that the lesser result of A and B becomes the net value answer.  In order to get 3.2 points under formula B you need 10.03% ownership.  Obviously you will need to pay attention to the requirement under formula A to keep it at at 3.2 points.

Ownership level	1.0%
Deemed value
Value of shares in black hands on date of measurement	2.00
Value of outstanding debt	1.00
Value of company on date of measurement	100.00
Deemed value result	1.00%
The net value formula to use is the one that is lower of the two
Net value formula 1
Year 1	10%
Year 2	20%
Years 3-4	40%
Years 5-6	60%
Years 7-9	80%
Year 9-10	100%
Net Value	3.20
Net value formula 2
Percentage black economic interest	5%
Target for ownership	25.10%
Net value formula B	1.59
Subminimum	3.2
Minimum ownership levels	Net Value levels for Formula B
1.00%	0.32
2.00%	0.64
3.00%	0.96
4.00%	1.27
5.00%	1.59
6.00%	1.91
7.00%	2.23
8.00%	2.55
9.00%	2.87
10.00%	3.19
10.03%	3.20
10.10%	3.22
11.00%	3.51

 

 

SANAS BEE analyst required in the Rosebank (JHB) area

A reputable SANAS-accredited verification agency is looking for a SANAS-savvy analyst.  I should experienced SANAS-savvy analyst.  I have no details on the package or anything else - but I can tell you that you will work with me so I'll make it worth your while.

Send me an email if you are interested and I'll put you in touch with the company concerned.

 

Cyril - please not rob davies for another five years

Our good friend and dyed in the wool minister of trade and industry declined to sit on the anc's NEC in December.  My thinking was that bolshie had done enough destruction for one lifetime, something which the country will pay for dearly long after bob is communing with Marx, Trotsky and Lenin in the hereafter, and hence would resign as a minster.  Donwald Pressly takes a different view.  

There is a list of possible cabinet appointments doing the rounds among ANC supporters.

Here is the full circulated list:

President – Cyril Ramaphosa (currently Deputy President)

Deputy President – David Mabuza (Mpumalanga Premier and now ANC deputy president)

Minister in the Presidency – Joel Netshitenze (former government spokesman under President Thabo Mbeki)

Women – Baleka Mbete (currently Speaker)

Agriculture – Thulas Nxesi

Arts & Culture – Dipuo Letsatsi Duba

Basic Education – Angie Motshekga

Higher Education + Training – Blade Nzimande

Communications – Jackson Mthembu

Cooperative Governance -Mondli Gungubela

Defence & Mil Veterans – Nosiviwe Mapisa Nqakula / Thabang Makwetla

Economic Development – Enoch Godongwane

Energy – Senzo Mchunu/ Dikeledi Magadzi (depending on the SG issue)

Environmental Affairs – David Mahlobo

Finance – Zweli Mkhize

Health – Aaron Motsoaledi

Home Affairs – Malusi Gigaba

Human Settlements – Kenny Moimang

International Relations – Lindiwe Sisulu

Justice – Mathole Motshekga/ Andries Nel

Labour – Thandi Modise

Mineral Resources – Ebrahim Rasool

Police – Jeff Radebe

Public Enterprises – Pravin Gordhan (former Finance Minister)

Public Services – Ayanda Dlodlo

Public Works – Thoko Didiza

Rural Development – Gugile Nkwinti

Science & Technology – Naledi Pandor

Small Business Development – Lindiwe Zulu

Social Development – Nkosazana Dlamini Zuma

Sport & Recreation – Fikile Mbalula

State Security – Bheki Cele

Telecommunications – Stella Ndabeni Abrahams

Tourism – Derek Hanekom

Trade & Industry – Rob Davies (vudderfok?!)

Transport – Ebrahim Patel

Water and Sanitation – Lulu Johnson

I suppose you have to take the good with the bad.  abagig should join zuma in nkandla.  I do think that sport will be better under fuckall mbollock - he's such a worm that he'll be half way up Cyril's behind before Cyril's next bowel movement. I do find it interesting that Cyril would consider keeping the same number of ministries - he probably has no choice.  Also note the retention of fatboy mahlobo - a bit of zuma strategy here

Here we are in 2018 - in a better position than we were last year this time

There is reason to be cheerful.  The news is full of reports of a zuma recall within the next week.  Universities are on tenterhooks as the multitudes demand entry - all because Julius is trying to outpopulist zuma.  And the matric results are pleasing (only if you are an IEB candidate).

Is it an opportune time to offer my predictions for this year?  Of course it is, this is my blog.

1. zuma is in a very tight position.  He has a few choices available to him.  If he sticks around he could face impeachment.  The concourt has found that parliament has not held zuma to account. If zuma is impeached, he is thrown out with no benefits, and no state funding for his numerous court cases.  If this doesn't go ahead (I am being very simplistic here) the opposition could call for another vote of no confidence.  zuma sits in a very precarious position -  he doesn't know who his friends are any more.  The aNc is split and many zuma cronies may vote for this no confidence because they can see which way their own careers are going to head.  Or zuma could resign within the next week.  I don't think this is going to happen, he's too deluded, I expect a palace coup before the next state of the nation. 
2. Once Cyril becomes president of the country the aNc will start to align themselves towards him.  He will build up his own powerbase and all those dodgy politicians will kowtow  or be fired.  I cannot see how the likes of zwane, butterbeelee, des, faith, mahlobadass and the like will retain their cabinet positions.  abagig (gigaba) will be moved out of finance to some other aimless position which he will no doubt destroy.  I am hoping that Pravin steps in as a caretaker for a year or so whilst Cyril tries to persuade Jonas or Nene to come back.
3. What about bolshie bob.  I think he's had enough - he's done all the damage that a commie can do to an economy.  He has a decent pension for the balance of his life.  He will be replaced soon - just not by another inept commie.  In fact not by anyone inept.  We are going to be paying for his dogma and incompetence for many years to come.
4. With Cyril in charge we can expect a better relationship between government and business.  Selfishly, I am hoping that a better understanding of what this economy needs is finally agreed upon. The matric results are an express admission that this government has failed the youth.  They want to get those people out of the school system because they cannot do anything with them.  Can you imagine finishing school with a "matric" but you are still functionally illiterate and innumerate?  Many of the matriculants will be in this position. The schools no longer want you, the tertiary institutions don't want you, the job market doesn't want you and the government doesn't want you.  It's no coincidence that bolshie bob in his commie-addled mind pushed the skills development targets up to 6% - what he was saying is that he has no idea (and hence his government has no idea) what to do with these unemployable people.  What he'll do is throw the problem back at the private sector and then accuse them of extreme racism and white monopoly capitalism when they can't do anything for them.
5. The BEE Commissioner is now asking more questions from listed companies about their transformation efforts.  It's all now about the degrees of blackness.  Indians might as well be white now, and Coloureds aren't in a much better position.  
6. Perhaps we'll see a relaxing of BEE requirements.  They'd better do something because what going on at the moment is anti-transformation.  I still scratch my head and ask why would you set up a system that is so hard to understand.  Why? Surely if you want to fix things then make it accessible to everyone.  
7. BEE certificates will take about 4 months to issue.  This is probably on a good day.  SANAS is doing us no favours.  
8. Those companies that got fantastic scores for procurement can expect to drop a level at the next verification.  The old codes scorecards are now gone - they all expired at the end of last year.  Non-compliance is pretty much the way to go now.  I'm seeing this happening already.

Good luck for this year.  I still occupy this piece of digital real estate and will post as regularly as I can.  I see my role moving from doing the actual BEE scorecards to high-end advisory.  I've done some pretty amazing stuff with my listed clients this year.  I've also come up with very interesting concepts with disabled skills development.  I'm almost loathe to write about these things here, I know they work and I know who they work for but I don't know that I want the awesome awdoz to know about them because she'll attempt to close them off.  If you want to know more contact me and I'll come through and tell you for a fee.