Paul Janisch

Transformation is out - this is about survival. Compliance is the way

It's the 31st of March 2017.  zuma has fired Pravin and we wait and see what happens now.  zuma's radical economic transformation policy has exactly nothing to do with empowerment. It's about gupta crony capitalism.  Why then should you concern yourself with an empowerment process that rampant racists like jungle jim (manyi) will discount as either fronting or white monopolist expedience.  I'm not discounting the necessity of empowerment, what I am saying is that it is not endorsed by the zuma regime, a regime that now operates entirely independent of the anc (the party will be written in uppercase when they show a little balls).  Back to empowerment - South Africa cannot afford not to empower the disempowered.  It is an economic and social necessity, but until government (under zuma) plays its role as a partner in this process I will advocate compliance over empowerment.  Tread water with me here.

Compliance differs to empowerment in intention.  Empowerment requires an intention to make a difference, it's more hands on and probably more meaningful.  Compliance is a measurement process.  It's squeezing the maximum number of points out of the least amount of money.  It's selfish in nature but does produce results and ultimately does contribute to empowerment.  It's not as easy as mere compliance, bolshie bob's revised codes have made a gallant attempt to push empowerment.  The SANAS verification process is both onerous and thorough (for now) which makes compliance a little more difficult.  But in our favour, the codes (all of them) are so badly written that it comes down to interpretation.  Just make sure that you know what you are doing and have your justifications ready.

Interpretation 

When interpreting the codes you must never lose sight of the founding principles.  There are a number of them but these are the significant ones.

BEE codes

• substance takes precedence over legal form.  The fronting clause.  It refers specifically to ownership but has a broader application.  This clause permits those who doubt to dig deeper than the legal structure of a deal.  Classic (and patently stupid) fronting puts an unsuspecting person on the shareholders' list or as a director. That's the legal status - the substance states that this person is not that in fact.  However there is a converse. Let's say you do your 51% deal and you sign the shareholders' agreement, create the trust, or even sign a MOU; but it takes CIPRO months to reflect these changes.  The substance of the deal is that it exists - the legal form has not happened yet.
• any reasonable interpretation (of the codes) must be consistent with the objectives of the Act and the B-BBEE Strategy.  Note the words "reasonable interpretation" this is a subjective measure.  SANAS or the verification agency might not agree but must entertain that interpretation if it is consistent with the Act and Strategy

 BEE Act

The act lists its goals (amongst numerous others) as

• promoting economic transformation for meaningful black participation;
• substantial change in the racial composition of ownership, management structures, skilled occupations

 BEE Strategy

This is a really good document that predates the Act.  The dti refer to it often but it's not easy to find. So I've posted it here.  My good friend Chris van Wyk tells me that it's not an official document even though it's referred to often. Perhaps Chris can explain that in more detail.

• BEE is broad-based.
• BEE is an inclusive process.
• BEE is associated with good governance.
• BEE is part of our growth strategy

 Notice the second principle.  It's inclusive.  Not according to bolshie bob and his crafty crew of drafters.  You see empowerment is a white problem - not your problem if you are black and turn over less than R50m.  I've said this before.  I wonder if jungle knows that white monopoly capital is being made to pay for everything as well. 

The next post will discuss the modified flow through principle and how you get to 51% black ownership without actually doing it.

 By the way, this is what I am wearing today

Zuma promises more changes to boost BEE - now it's changing the PPPFA

Speaking to the Black Business Council, which has signaled strong support for Zuma, South Africa’s president said that the Preferential Procurement Policy Framework Act will be changed “to continue the quest for a transformed economy”. More people must be brought into the net to benefit from government contracts, he said.

via www.biznews.com

We've heard this before.  Remember how seriously Dud took the doos's obiter remark about set-asides in his 2015 state of the nation (of no fixed) address?  I think this is another platitude from the mouth of a moron who no-one likes nor respects (other than Hlaudi of course).  As Jackie Cameron wrote

The president’s words will be music to the ears of the tenderpreneur brigade, though not so sweet to the small army of entrepreneurs who aren’t black but play a meaningful role in job creation and economic growth and are already doing their bit for BEE. An amended public procurement bill is set to be released for discussion next month and tabled in Parliament early next year.

I can't see this happening.  Zuma lacks the political clout to do it.  Perhaps he is prodding Treasury to see what their reaction will be.  Perhaps he thinks that the useless and tailcoat-riding BBC will start lobbying to get rid of Pravin because he's not going to agree to this.  Thinking about it, this is probably what Zuma is doing. The strategy now is to create huge dissatisfaction with Pravin, specifically amongst those who are not competent enough to provide services to the private sector and have settled for government work that worries neither about quality nor price.

Now he's attempting to placate the completely irrelevant jungle jim, who is threatening to go to court (yeah right) to get the PPPFA scrapped.  He's saying the regulations that Treasury published earlier this year are going to be promulgated at the end of this year as an interim measure, and then they are going to change the Act (not repeal it jungle).  Here are the words of the thickest human being next to Hlaudi.

In the past five years as part of advancing BBBEE procurement, government amended the Preferential Procurement Policy Framework Act or the PPPFA Regulations to provide for BEE preference points. We thought this would work and would make an impact. However, you pointed out that it does not work.  We are now aware of the shortcomings. We agree that the preference points system prescribed in the PPPFA is rigid and is not responsive to government objectives.

Due to the shortcomings, the preferential procurement regulations have failed to substantially re-shape the skewed ownership and control of the South African economy. It is the intention of government to ultimately repeal the PPPFA and its associated regulations and introduce a more flexible preferential procurement framework that is responsive to government objectives. 

In this regard, the Preferential Procurement Policy Framework Act will be repealed by the Public Procurement Act. The Public Procurement Bill is now going through the different government stakeholder engagement processes before it is tabled in Parliament. This is targeted for early 2017. I trust that the BBC has made its inputs to the National Treasury.

In the interim, government is to produce regulations that will improve the PPPFA to make them more responsive to the economic transformation imperatives.

One of the main changes contained in the proposed new Preferential Procurement Regulations is the introduction of a compulsory sub-contracting clause.

It will be compulsory to sub-contract a minimum of 30% of the value of the contract for all contracts above 30 million rand, to small and emerging enterprises owned by the women, youth, black people or persons with disability. The intention is to finalise the Preferential Procurement Regulations for approval during October 2016, and for these to be promulgated by 1 November 2016.

Will this actually materialise? Zuma is a lame duck, it won't happen.  

 

Related articles

Ownership uber alles - can anyone confirm this?

Something very sinister is happening here

Draft PPPFA regulation disgust (discussed and cussed)

Life in the jungle (more like jungle's mind)

There is quite nothing more pathetic than a Zuma/ANC patsy who thinks that he is still relevant, even though he has never been.  Enter our old friend (this blog's friend), Verwoerd's protege - jungle jim (who goes by the new moniker Mzwanele).  I get the impression that Zuma is now so desperate for support that he has put jungle on the case.  I'm not for a second suggesting that jungle is less competent than Zwane but it's really close.

702 picks up the story.

Black First Land First leader Andile Mngxitama and president of the Progressive Professionals Forum, Mzwandile (Jimmy) Manyi say they are shocked over the lack of transformation at SAA.

Manyi says he and Mngxitama decided to engage directly with SAA Chairperson Dudu Myeni over controversial claims made about operations at the airline.

We have decide that we have to be a very active civil society.

— Mzwandile Manyi, president of the Progressive Professionals Forum

He says that while Myeni was very cooperative, they were dissapointed to find that only 2% of SAA's R24 billion procurement budget goes to black business.

Among other representation issues, they have taken gripe with the fact the the airline's ICT services are outsourced to a French firm.

Manyi refused to respond to what he's called "petty comments" regarding his relationship with the ANC and President Jacob Zuma.

In addition, he remains adamant that the National Treasury has been captured by white capital and big business.

National Treasury is working against the development and empowerment of black people.

— Mzwandile Manyi, president of the Progressive Professionals Forum

Stephen Grootes, for his sins and there must be many if this who you get to interview the wild man.  We all know that jungle has one agenda and that is to moan about "white monopoly capital", that brand new buzzword.  To a certain extent jungle is like Panyaza Lesufi who only ever opens his mouth when racism is alleged.   This interview (it's on this page) makes for entertaining listening. Grootes seems to have lost patience with people like jungle.  Perhaps his bullshit barometer is just exhausted.  After questioning jungle about his friendship with both Zuma and Miyeni millions they then head off into PPPFA territory.   The listener should start at 7:13. The PPPFA is killing black business says Tarzan's rival. He goes into section 217. And then alleges that the constitution allows the government to pay exorbitant prices for stuff. He goes into the most unbelievable (literally unbelievable) and nonsensical rant about the PPPFA's constitutionality. Even at first listen you know he's talking rubbish. But that's not the crux. The crux, dear reader, is his parting shot.

"...so we are saying that the PPPFA in its current formulation is actually unconstitutional. We've been making this point time and time again. It's time we go to court on this matter."

Well it's not often that I agree with my good friend.  But I would welcome this court case.  But it won't happen. Manyi, the Black Business Council and other types of lobby groups have no interest in going to court.  They would rather lobby the corruptible powers that be.

Oh well.

 

 

Related articles

Something very sinister is happening here

Has Treasury been captured by the black business lobby?

The more I read this stuff............Moronfest

Management and EE under the revised codes - Udge content with a hint of Jesus

Udge is reputed to be the drafter of the explanation notes that came out in May.  It's a good gig if you can get it because the DTI are never going to publish anything that makes any sense or follows any logic, you'll be drafting explanation notes until Jesus returns.  I haven't read his document but my good friend Chris van Wyk tells me it's clear and the formulas work (now that's a proper endorsement hey Udge).   

The attached spreadsheet is my take on the EE calculations.  It took me an afternoon to figure out this logic, which might not be the Udge-explained logic but it seems to work.  Don't lose sight of the unconstitutionality of these targets and remember that if you have an oversupply of Indians and Coloureds you don't get more points.

Feel free to distribute this spreadsheet with your friends and my enemies.  If there are any serious flaws please let me know and I'll post up your comments and amendments.

On the subject of Jesus returning (if she/he ever came in the first place) can you imagine if he turned out to be white, that would mess with jungle's EAP.

Related articles

Ownership uber alles - can anyone confirm this?

Complete large enteprises and QSE scorecard

Vodacom leaps higher on Neotel approval if you are a supplier to them you'd better blacken up quickly

Progressive Professionals Forum (no apostrophe needed)

PPF comprises of professionals, academia, intelligentsia and entrepreneurs who align themselves with progressive movements and who aspire to progressive i…………………………

So says the PPF's Facebook page. Do we get to fill in the rest of the sentence? How about this

(i)nvolvement of likeminded people who are inspired by the Verwoerdian model of racial exclusivity. Of course being progressive we would never mention that whites, coloureds and Indians are not welcome in this group. In our experience, progressives have an affinity for the African way with a bent towards people who are over concentrated in certain provinces like KZN.

The PPF is designed to woo the black professionals back to the ANC. It's apparently open to all races, sexes, persuasions and political parties but has aligned itself to the ANC. One of its luminaries is Verwoerd's protégé – Jimmy Manyi, known as jungle jim on this blog. jungle is a known racist, an institutionally protected racist who hides his disdain for everything non-African by couching his dogma under the guise of empowerment. I concur with Solidarity who are concerned that Manyi's ideals are going to infiltrate the top levels of the ANC through the PPF. I wouldn't be surprised if these ruminations haven't started germinating at the top.

The PPF was launched last week with a cry from Zuma to rally clever blacks.

President Jacob Zuma is wooing black professionals and opinion makers back into the ANC's fold ahead of next year's elections. And several high-profile figures who have been out in the cold are responding to his call – among them former Government Communication and Information System (GCIS) and Black Management Forum (BMF) boss Jimmy Manyi, who is organising the constituency; disgraced former national director of public prosecutions Menzi Simelane; and businesswoman Danisa Baloyi, who cooked her political goose by backing Thabo Mbeki ahead of the ANC's Polokwane conference in 2007. The three are among the founding members of the Progressive Professionals Forum (PPF), whose launch Zuma addressed in Sandton on Friday night.

That's the PPF. Its core is made up of a few disgraced characters. Do you remember Fidentia and the Living Hands Trust? That is where Baloyi really cooked her goose – she was a trustee on the board of the Living Hands Trust and as a result of her brilliant trusteeship she got booted off a number of boards. This in itself should be an alarm signal about the integrity of this forum.

Why then would you as a progressive want to join this band of merry people? As a progressive professional it's very likely that you contribute a large percentage of your income to SARS. SARS then allocates this money to Nkandla, helicopters to Nkandla, to assist in rampant corruption etc.

Might I suggest that the incomplete preamble on Facebook should go along these lines…..

If you are into racism, cronyism, incompetence, corruption, protected government employment and entitlement – the PPF is for you!!!!!

Jimmy Manyi out - good riddance. No one is to hire him

THIS JUST IN

The Ministry in the Presidency for Performance Monitoring and Evaluation wish to announce the expiry of the contract for the Chief Executive Officer of the Government Communication and Information System (GCIS) and Cabinet Spokesperson, Mr Jimmy Manyi. Mr Manyi left his position on the 25 August 2012, after serving his full three year contract.

via www.moneyweb.co.za

Oh joy.

Now - no one is to employ him. No one, not even  McDonalds!!!!!!! Am I clear on this point!!!  

Lest we ever forget this old chestnut

Solidarity posted a video on YouTube of government spokesperson Jimmy Manyi, who was then the director general of labour, saying there was an “over-supply” of coloured people in the Western Cape.

He made the comment in March 2010.

Manyi later said he had been speaking in his capacity as Black Management Forum president.
SAPA

via m.news24.com

This is still vilely offensive.  Uttered by a vile piece of humanity.  Rumour has it that said personage is not going to be employed by the government soon.  I'll cut the South African business community a deal - I'll promise not to hire him and you promise not to hire him.  If we all don't hire him then perhaps he'll disappear in a heap of impoverishment and get the fuck out of our lives.

 

Ferial, the spear and Verwoerd's idol - jungle jim

I'll do the same.  I love the fact that the ANC boycott against City Press didn't work.  We now need to watch the advertising in this publication, can the dominant party (I'd love to say ruling party but they clearly aren't that)  separate itself from its governmental role and ban all government advertising on City Press.

So said Ferial Haffajee on the City Press website this morning.

The Spear is down. Out of care and as an olive branch to play a small role in helping turn around a tough moment, I have decided to take down the image.

Another interesting article in the papers this weekend were on the über-racist jungle jim. The best one spoke of how his contract as Government Communication and Information Service CEO is not going to be renewed. But the hard-hitting article came from Jonathan Jansen in the Mail and Guardian.

Anyone who thinks that Jimmy Manyi, after his comments about coloured people, is simply an aberration on the post-apartheid landscape is hugely mistaken. Manyi, like Butana Komphela, is merely saying the kinds of outrageous things that many of his ilk among the powerful (and the restless, economically disen­franchised and powerless) think but lack the courage to say openly about the people they dub "coloured".

Manyi is a perfect product of our racist past: he categorises humanity into the four racial boxes of apartheid, assigns biological and social essences to the people in each of them and then damns them accordingly. I once sat on a panel with this man discussing affirmative action and employment equity, and I was astounded by his lack of reflection, his incapacity for generosity and the racial and ethnic determinism that shapes his thinking.

The fact that the man is protected by so-called black (read "racial African") lobbies and receives a light, laughing tap on the wrist from powerful political parties tells you that Manyi-type thinking enjoys considerable support among the elites. That he holds positions of influence makes the man's thinking dangerous in the extreme. What he spewed out and now receives support for is no laughing matter. This is precisely the kind of racist discourse about others—"there are too many of them"—that preceded the ethnic genocide in Rwanda. It is the language of scapegoating, and our skins should crawl when faced with this kind of provocation.

I believe that this view that is taken by jungle jim is necessary for the ANC's survival. It is rapidly realising that its struggle credentials have run out of steam and now must blame whites and other minorities for its own failings. Something that Hitler and Mugabe were particularly competent at doing. Unless the ANC catches a swift wake-up it will be recorded in the history books as another African failure along with Mobutu Sese Seko, Mugabe et al.

More on this in an upcoming post.

 

BEE Act(?) amended

Long-awaited amendments to the Broad-Based Black Economic Empowerment (BBBEE) Act will for the first time introduce penalties for fronting — 10% of annual turnover for companies and a fine or imprisonment of up to 10 years for individuals.

via www.businessday.co.za

First a plea to the world - if anyone has a copy please send it to me (anonymity) is assured.

Second - read this article carefully and notice how the word "fronting" is used.

Fronting, which has undermined the government’s attempts to use its large procurement budget to achieve economic transformation, occurs when companies misrepresent their black empowerment levels to win contracts.

This refers to "government" business - hence fronting can only be a problem in a government procurement situation and only if it induces the government to contract with a company (with the preference points being based on BEE scores this could be very relevant).  Also note that the ambit of fronting is likely to be extended - in other words you can purport to make SED donations and lie and this would be considered a front.  It will spill over into private procurement as a method of terminating a contract, perhaps lawyers should start amending terms and conditions immediately in anticipation.

What is of concern is the penalty clause discussed in this article

The Amendment Bill, which has been released for public comment, attributes a higher weighting to the issues of enterprise development and procurement than has hitherto been the case.
Should the legislation be approved, enhanced recognition will also be given in the scorecard to enterprise development in the sectors identified for priority attention under Ipap and the NGP.
A penalty provision for noncompliance with enterprise development and procurement elements of the BBBEE scorecard is proposed, which could result in a discount from the overall score being applied.

I would also not pay too much attention to the word "Act", it's more likely that the codes are being amended.  Do you think jungle jim knows the difference between the two?

jungle jim - left foot in mouth, right foot in mouth, repeat ad nauseam

Start listening at 6:33.  And I quote

"It's a pity that they made all these impulsive statements before having that meeting.  What one would say (GOING FORWARD) is that before you go out making impulsive, unthought (sic) through statements, have a discussion first,  understand what the other side is saying."

Well isn't that the pot calling the kettle black (black would not include Coloureds and Indians under jungle lore).  Here are a few of jungle's "who gives a fuck about whether I understand what's going on I'll say it anyway"

• The Black Management Forum (BMF) has condemned Futhi Mtoba's election as president of Busa. Her election was "a blow against transformation and the unity process in the South African business community and instead a victory for the interests of established business", BMF president Jimmy Manyi said.

How about we all post one in the comments.  Believe me there are many.  Just another one of the eternally useless president's appointments.