Taken up by Namibian Prime Minister Saara Kuugongelwa-Amadhila. To quote the Namibian
Kuugongelwa-Amadhila said Neeef has six pillars, which are of equal importance. Neeef is more than the 25% equity ownership. (There are) six pillars, and all those pillars are very important.
The pillars are ownership, management control and employment equity, human resources and skills development, entrepreneurship development, corporate social responsibility and value addition, technology and innovation, she explained. According to the PM, equity can only be achieved if people are empowered in greater numbers, instead of benefiting a select few. “If you say 25% must go to previously disadvantaged Namibians, and you end up with 10 people who have a stake in all of the companies, you will still have inequities,” said Kuugongelwa-Amadhila.
So much sense coming from a southern African country. You'd be hard pressed to think it was our immediate neighbour.
Contrast this to a press release that was sent to me. I think the press release is for general consumption if not - well then you heard about on this blog first. It was sent out by Rachel Lailey, Content Manager - Norton Rose Fulbright South Africa Inc.
Black ownership versus transformation: proposed amendments to the BEE Codes defeat their purpose
It is irrefutable that transformation is required across all aspects of South African business. However, the draft amendments to the BEE Codes, published by the Department of Trade and Industry (DTI) on 29 March and 15 June 2018, undermine the legislation intended to drive this transformative process.
It is clear from the draft amendments that the DTI is prioritising entities which have at least 51% Black ownership. It has done this through two key aspects:
- entitling generic enterprises with a turnover of more than R50 million to automatic BEE levels; and
- amending the enterprise and supplier development element to increase the requirement and incentive to procure goods and services from entities which have at least 51% Black ownership.
This could be viewed as being against transformation despite its intention to drive business to entities with majority Black ownership. It is imperative to understand what constitutes ownership for the purposes of BEE.
Black ownership for the purposes of BEE is a very limited measurement of ownership and only measures voting rights and rights to economic interest (a right akin to receipt of dividends) in the hands of Black people and sub-categories of Black people. Ownership for BEE purposes is similar to the rights a person would have if they held shares in a JSE listed company – it does not include any involvement in the operation of the entity, nor does it inherently involve any upskilling of the shareholders. It simply entitles a shareholder to vote on proposed shareholder resolutions, and receive dividends in the event that the company declares any.
And so Norton Rose recommends that companies comment. And they are right - we are going so far backwards Malema and Steve Hofmeyr can now kiss each other intimately.
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