Paul Janisch

SANLAM BEE report. And they are surprised by their conclusions

And the headline reads

'Transformation not as advanced as BEE scorecards suggest' – Sanlam report

The report says that

After analysing all the data and interviewing people working in these companies, the researchers concluded that "transformation is not as advanced as the scorecards suggest".

Why is this not a surprise?  The article concludes with

Masilela said it's time South Africans questioned why transformation promised by the Broad-based Black Economic Empowerment (BBBEE) remains elusive 20 years after the law was introduced to address inequalities in SA. He, however, doesn't blame BBBEE policy but rather corruption, racism, and the psyche and attitude of decision-makers.

The failure has everything to do with BEE policy.  There was never a transformation agenda in the policy.  It is a punitive model.  It goes beyond a tax.  Business cannot fix what the government has broken.  If the education system is broken then you can't hire people.  If you don't make it easy to fire people then you won't hire them.  I've noticed with some of the YES projects that we've run that certain people would rather do nothing and get paid R350 to do it than work for R4500.  This is not a slight on the people in this country - this is the environment that they have grown up in.  If everyone around you is unemployed going back a few generations then how will you know what work is?

BEE has failed and will continue failing because government (anc government I need to stress) has not been an equal partner in the process.  Of course it's about compliance.  An additional thing to consider is the fact that BEE was only designed for a booming economy, now that the anc has dragged us into the shit BEE cannot function.  We have that awful bolshie bod to thank for this.

 

 

 

 

 

Ownershield has launched a Whatsapp Group for BEE advice

Click on the link and join us.  It's broadcast only but if you have any questions we'll take emails

We have a number of really good products coming out.  We don't think that the market has seen these products before and many of them transcend BEE compliance.  We'll keep you posted

Ownersheepish - and the only BEE compliance course

Someone searched for this on the blog.  I wrote this 14 years ago.  I'm glad to see that my thought process hasn't changed.  I've probably become a little more jaded over time. 

We have a unique online BEE course coming up.  It's all about compliance. I don't know of another course that deals only with the substance of the codes and doesn't touch on what is right or  emotional issues.  Click on the link and join us

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Bless me for it has been a while.  I discovered that if you get twittering your blogging suffers - something my fellow blogger Melissa Chang told me is a very normal process.   It's been a very interesting month - I went on a national tour talking to both the private and public sectors about the PPPFA regulations.  I was quoted in Business Day - something I have been wanting since I started this BEE lark five years ago and I appeared on TV.   Now before my head gets too big..........

I found this article on my alerts "BEE firms could warm up to family businesses" that initially got up my nose (I've changed tack since I started writing this post).  It's written by Cynthia Mapaure who is the financial director of the Mineworkers Investment Company and in it she avers

Family businesses employ millions of black workers yet black economic empowerment (BEE) has made only limited inroads within these companies - leading to impatience in some quarters over the slow pace of change at the core of our economy.

OK - I don't agree with this statement.  I firmly believe that family businesses should be allowed to remain exactly that FAMILY BUSINESSES.  Why on earth should they sell out to a BEE investor or any investor for that matter. 

But Cynthia goes one step further, surprising me very pleasantly.

Why would a family business that had stalled on BEE for years suddenly have a change of heart in the middle of a downturn? Chances are the company is in dire need of capital and is embracing a new partner out of necessity.

She backs this up with

Some empowerment companies still have relatively strong balance sheets and solid capital reserves. They might benefit from value opportunities like this.

Is she perhaps suggesting that empowerment companies might actually be willing to part with money for their shares - something VERY few have been interested in doing up until now.

Her concluding remarks are

If you are serious about your empowerment mission, there can be no shirking the responsibility of extending transformation to the workers who depend on these businesses for jobs and a regular income.

And this is where I draw a line.  We know where Cynthia is coming from - the byline tells us that she is the financial director of the Mineworkers Investment Company, a leading BEE company with a 14-year track record.  She does deals.  But surely someone who knows anything about deals knows that there is a scorecard that looks after the transformation of the workers.

I put it to you Cynthia - can you seriously prove that by extending the ownership of a private company to the workers you are benefiting them in any real way?  Let me tell you what I think

1. The shares ain't worth shit unless someone is going to buy them.  And in a private company situation this is not going to happen readily
2. I have yet to be convinced that ownership in a company where the shares are not readily for sale actually improves staff retention

Come now Cynthia - drop the ownership rubbish and start talking about job creation and entrepreneurship.  Focus on skills development and whilst you are at it talk to the SETAs about innovative ways to develop skills.  And then why not invest some of your own money in starting black owned family businesses that will compete healthily with white owned businesses.  Leave the ownership of family businesses alone - they are the cornerstone of our economy.

Our first BEE compliance course. BEE COMPLIANCE MADE EXTREMELY COST EFFECTIVE and SIMPLE

This is very overdue. I have seen so many courses offered by companies that want to instil a ridiculous fear in their delegates. So many companies have been chronically ripped off by these charlatans. We are talking ugly ripped off

This is the first course that I am aware of where we go through the shortcuts. We talk about acceptable compliance. Transformation in this country is a politicised joke. Look at every single parastatal in the country. They are dysfunctional because of BEE-related corruption. If they don't give a toss about transformation then why should the rest of the country.

But you need a BEE certificate to do business. I've got 20 years of BEE compliance experience. Most of the stuff that I will talk about is not on this blog. It's stuff that has worked over many years. It's time to pass it on.  Here's the flyer

Ownershield presents

BEE COMPLIANCE MADE EXTREMELY COST EFFECTIVE and SIMPLE

Tuesday 8 August 2023.

R599 per person.

Online only.

Book by emailing [email protected]

B-BBEE compliance, as with any type of compliance including tax compliance, is open to interpretation. Verification agencies are happy to accept these interpretations if they are in keeping with what the BEE codes prescribe.

Fact "the spirit of BEE" does not exist within the context of a BEE verification

No verification agency has the ability to assess you in terms of "𝘁𝗵𝗲 𝘀𝗽𝗶𝗿𝗶𝘁" because their mandate is to objectively measure the evidence you present. Similarly, SANAS is not an interpreter of the BEE codes. They are there merely to assess the quality of the information submitted to a verification agency.

It follows that any reasonable interpretation of the codes will suffice for compliance purposes.

BEE Compliance has to fit within your business strategy and operations NOT THE OTHER WAY AROUND

It's likely that we would have no loadshedding if Eskom hadn't put "empowerment" credentials above their mandate to deliver cost effective and reliable electricity.

Why expose your business to a similar fate. Your business exists to provide employment and generate a return for its shareholders. Splurging large amounts of money on BEE points with all too willing service providers could impact on both of those business imperatives.

Don't do it!!!! There are much more cost effective alternatives.

Take aways from the course

• The four hour online course covers practical short and medium term tips that will generate points under most BEE codes for the least amount of money and effort.
• Each element will be covered
• You'll hear about alternative compliance programmes. These will include options, alternates, internships, loans and many other tips in detail
• An overview of the verification process – it's all about documentation, all of that documentation is easy to draw up

Please note we are not going to teach you how to front and nor are we going to suggest that you change your HR practices to appease the despicable new Employment Equity regulations.

COST AND FORMAT

Tuesday 8 August 2023.

R599 per person.

Online only.

BOOKING

Send an email to [email protected] to confirm your booking. We will send you an invoice. Proof of payment will confirm your place on this one of a kind course.

About your presenters

Rudolf Rautenbach is the BEE tax and structuring expert in South Africa. He has worked on multiple large transactions and has a wealth of knowledge about ownership transactions their tax pitfalls, amongst other things

Paul Janisch is a BEE compliance expert. Over the last 20 years he has saved his clients millions of rands in their BEE processes whilst delivering high BEE scores. He is also the rudest BEE blogger in the southern hemisphere.

CONTACT US

Please contact us to learn more about how our solutions can empower your business

Rudolf Rautenbach	Paul Janisch
083 759 0374	083 227 1375
[email protected]	[email protected]

For more information please visit our website - https://ownershield.co.za/