Paul Janisch

And then we are told the HDI is back in the allocation of preference points and Treasury is involved

The term HDI or Historically Disadvantaged Individuals hasn’t been used for years.  It was around in the late 1990s and was hastily discarded in the mid 2000s.    The reason behind this is that the definition was roughly – all those people who did not have the vote under the constitution that predates our current constitution that came into effect in 1994.

The definition included all women and disabled people.  This contradicted with the definition of black which is om en by Indian, Coloured or African born in SA.  The HDI definition would then exclude all those who born after 1994 irrespective of race.

But it seems that a tender (which I haven’t seen and can’t seem to  find) issued by National Treasury, the justice department and Solicitor-General for the provision of government legal services for the next three years awards points for HDIs.  And so a few organizations are going to court.

The General Council of the Bar (GCB) and Advocates for Transformation (AFT) are suing the ministers of finance and justice, as well as the Solicitor-General over the use of a tender process to constitute a "panel of referral advocates" who would then be briefed on all state litigation for the next three years. In other words, black lawyers who are 30 or younger would not receive the points allocated to HDIs. "This definition, with respect, does not pass muster," ……He added the HDI definition in the tender was unlawful and clashed with the Constitution, Preferential Procurement Policy Framework Act and Broad-Based Black Empowerment Act.

How on earth did this happen?  It’s from Treasury who are trying to push the procurement bill through to get away from the PPPFA. 

They are firmly aware of the definition of black.  Old Dali must be dancing in the aisles because his lose at all costs policy is still available to continue assist the state in losing cases. After-all he is willing to work for peanuts for the awful busi.

Government wants us to fix its buildings- PPP territory but how many takers

In other words a PPP (Public-Private Partnership).  I thought PPPs had died down - this is not the case.  They are happening.  Refurbishing and managing a building probably won't be too hard a bidding process.

PPPs are a different beast that don't appear to be issued under section 10 of the BE Act, you know that section that incompetent government officials hide behind when they use race criteria to offer support under COVID.  The BEE aspect of PPPs is in fact a code so it's issued under section 9 and this one of the first codes, it came out in 2004.  When it comes to PPPs we have a code that can be found on Treasury's website or here.  

Back to this article.  It's building across the country.  If we think about inner city buildings I think this will be a hard sell.  So does our esteemed government

So far, five government properties – Telkom Towers, Cervitas Building, Public Works House, Police Barracks and Department of Defence Flats – have been identified in the City of Tshwane as pilot projects of these public-private partnerships.

Said to be done in phases, the first project is expected to commence in March 2024. “No property has been leased out as yet as the process is still in its conceptual stage,” said the minister.

We have a BEE for PPP course coming up in March this year.  I'll keep the blog updated.  There are rumours that the Minister will update the code this year.  Let's see

Draft Transport Code – rumours are that it will come into effect in March 2024 but does it exist

This is odd.  Mind you everything in this industry is odd.  A female Adrian (who I care not too credit) wrote in October 2023

The new Director of the Transport Council confirmed that the integrated Transport Sector Codes will be aligned with the Codes of Good Practice and published by the end of December 2023 and further confirmed that it is planned that these Amendments will come into effect from the 1st of March 2024, with no transitional period.

A search for this draft revealed nothing, I can’t even find a website for the Transport Council.  If there is a draft then where the hell is it.  I asked a lot of people.  Greg Wood (from Magna BEE Ratings) sent me the attached draft.  I looked through it and noticed that there were a number of things missing – like bursaries (and we still have student fee protests – another anc failure) , the procurement was similar to the first iteration of bolshie’s gift to a static economy. I started writing this post when I looked at the date of this draft – 2016. 

If there is a draft that’s newer I don’t think it exists.  slaptjips has done very little BEE stuff. Election year, there’s no electricity, no railway network and the only thing that keeps this country operating is the road-freight sector (which also destroys the roads), no leadership, cyril in fact has none; I’m not sure that this useless government has the mettle to ruffle the feathers of the only thing that works (and gets violently targeted too).  What am I saying – of course they would do whatever they could to fuck up the country – hell they even have an extra day to do it in this year.

I’m not with girl Adrian here.  I don’t think that there will be a revised transport code by March 1 this year.  But then I believed in cyril when he started.

What is a participant then - and who do we work for?

A participant is defined as a natural person holding rights of ownership in a Measured Entity (got to love that term). Simply put it’s a living breathing black person.  That’s simple enough. Where this word appears it must refer to a natural person. For example

Black New Entrants” means Black participants who hold rights of ownership in a Measured Entity etc

This is the inspiration for this post. In my industry we are always trying to one-up each other.  Since Rudolf and I have start delivering our courses I have come across at least two people who I would recommend in a heartbeat – you know who you are Marc Thompson and Ricky de Souza.  But you also get VAs who try to argue because they think it’s a gunfight.  When it comes to verification we have one outcome – that is that the client gets the result they expect.  The VA needs to defend what they do with SANAS, so if they are able to do so then allocate the points.  Don’t argue for the sake of arguing.  In my case it’s my reputation.  I’m interested in cheap points.   Give them to me.

I digress.  One person refused to allocate the new entrant points because the trust was a new entrant. I think he delighted in rubbing my nose in it. 

Corporate SA is gatvol of BEE

Those aren’t words from my mouth, I would have used more choice words.  This came from a person who is a player in SA business.  I approached the person to ask their advice about certain skills projects we have going.

This is not a surprise at all.  The largest corporates have long paid lip service to the process.  Claiming that they are committed to transformation.  They “engage” with the government at every level.  And to what end?

Corruption, crime, potholes, electricity, infrastructure. Theft, incompetence,  duplicity, racism, blame, you name it.  We’ve all had enough of this.  And the government knows it.

Where does this leave us?  I can’t see that BEE is going to be canned in a hurry, but I do see that the desire to comply to the letter of the law is waning.  I don’t think we need worry about the BEE Commission.  They have probably  realised that they are toothless.  As for the DTIC I think we need worry – because the incompetence levels there are scary.  How’s this for a story

There is a company that dropped a level (multiple levels)  because they had lost their ownership.  They had completed  a YES programme and wanted to go from that skimpy level 8 to a 7.  I sent an email to someone whose name was on the DTIC’s website.  And I was given the name of a militant Millicent who would hear our case.   It was obvious that she had little time for two white people pleading their case.  She found fault with the fact that there had been a two year gap between certificates.  I informed her (and I know this as a fact) that there is no requirement to renew ever.  “Oh yes there is!” thundered Millie.  “The Verification manual requires it was well.”   Pity Millie didn’t know that the manual is only applicable to VAs.

She then went onto to insist on evidence that the verification agency would have taken into account.  Why would you do this?  It  sounds like a personal agenda.  And you know you are powerless because she’s clueless and militant.  Where’s the reward for doing YES?  It doesn't exist.

It all talks back to the government.  They are not to be trusted.  This article came out a few weeks ago and I wholly agree with it.  The author concludes with

The biggest hurdle, in my view, to making the undermining of BEE more common is not the risk of legal jeopardy, but the sentiment harboured by too many South Africans that they owe the South African government a duty of obedience in conscience. Once this hurdle has been scaled – and it is becoming easier to scale as government’s incompetence and incapacity gets more pronounced by the day – BEE will all but collapse under the weight of noncompliance.

We aren’t there yet but it’s coming.  As this awful government starts losing power so will the revolt gain momentum.  If we become a coalition government then it’ll move quicker.  There’ll be so much infighting that governance is bound to suffer.

Ownershield is geared for this change.  It’ll be cost effective and non-invasive.  Like the things we’ve been offering over the last few years, we have expanded beyond ownership and intraternships.  Budgets are tight and BEE was only invented for the good times. Perhaps that’s the point.  We’ve been taken for complete and utter fools for 30 years.   If you want compliance that talks to your internal requirements then we can help you.  If you want to spend a lot of money then we’ll have to turn you down.

And why do you want to spend huge amounts of money on this ludicrous programme.

Udemy BEE courses launched at last https://www.udemy.com/user/ownershield/

Please forgive me.  We have been building up our new business and this blog has been used for marketing purposes.  I need to get back to the thought provoking stuff.  We've been asked to write  something on Scottish empowerment.  I'm working on that at the moment.

If you've missed any of our BEE courses, you can go onto our Udemy page and register for one of our courses.  They are delivered by  Rudolf and myself  and only focus on specific aspects of a BEE implementation.  We've done Once empowered, Net Value,  Introduction to Public Sector Compliance, EAP, Intraternships and a few others coming up.  Rudolf is regarded as the BEE tax expert and will do a BEE tax course at the end of November 2023. 

Please take  a look at the courses.  I know they are good because I lack humility and I wrote some of them.   There are many more to come.  And this is the only BEE Channel on Udemy.

There is a free course as well - Once Empowered, Always Empowered.   This is very poorly understood across the industry.

Ownershield Udemy Channel

 

Overview of Intraternships: Fostering Growth from Within

With training budgets slashed and productivity being prioritised it's time to have a good look at the training of staff.  Throwing money at training detracts from productivity.  Focused and customised individual training with re-inforced quizzes are the future.  Think of it as a type of skills development microdosing - but over a longer period of time.

HENCE - INTRATERNSHIPS

Intraternships, a portmanteau of "internal" and "internships," represent a groundbreaking approach to talent development within organizations. Unlike traditional internships aimed at external candidates, Intraternships are designed exclusively for internal staff members. This innovative concept recognizes the untapped potential of existing employees, offering them a unique opportunity for professional growth and skill enhancement within the familiar confines of their workplace.

The key features of intraternships:

Internal Talent Cultivation: Intraternships focus on identifying and nurturing existing talents within the organization. By offering structured learning experiences, companies can harness the expertise and potential of their employees effectively.

Skill Development: Intraternships allow employees to acquire new skills or enhance existing ones, aligning with the organization's current needs or future objectives. This targeted skill development ensures that the workforce remains adaptable and proficient in an ever-changing business landscape.

Knowledge Transfer: Seasoned employees can serve as mentors during Intraternships, facilitating the transfer of institutional knowledge and best practices. This mentorship aspect creates a collaborative environment where experience meets enthusiasm, fostering a culture of continuous learning.

Retaining Institutional Knowledge: Intraternships enable the preservation of institutional knowledge by encouraging experienced staff members to share their expertise with newer employees. This ensures that vital company-specific information is passed down, enhancing organizational stability and efficiency.

There are several application possibilities when it comes to intraternships

Leadership Development: Intraternships can be tailored to groom future leaders within the organization. Promising employees can be exposed to leadership roles, decision-making processes, and strategic planning, preparing them for higher responsibilities.

Cross-Functional Training: Intraternships facilitate cross-functional training, allowing employees to explore different departments or roles within the company. This exposure promotes a holistic understanding of the organization, encouraging collaboration and innovation.

Innovation Hubs: Organizations can establish dedicated Intraternship programs focused on innovation. Internal teams can work on research and development projects, exploring creative solutions to industry challenges while leveraging the company's resources.

Project-Based Learning: Intraternships can be structured around specific projects or initiatives. This approach promotes teamwork, problem-solving, and project management skills among participants, leading to tangible outcomes for the organization.

Diversity and Inclusion Initiatives: Intraternships can be instrumental in promoting diversity and inclusion within the workplace. By providing equal opportunities for employees from various backgrounds, organizations can create a more inclusive environment, fostering creativity and diverse perspectives.

Succession Planning: Intraternships play a crucial role in succession planning by identifying and grooming potential successors for key positions within the company. This proactive approach ensures a seamless transition when senior employees retire or move on to other roles.

Intraternships represent a paradigm shift in talent development, emphasizing the value of internal expertise and continuous learning. By investing in their employees' growth, organizations can enhance employee satisfaction, boost productivity, and maintain a competitive edge in the market. This innovative approach not only benefits individual employees but also contributes significantly to the long-term success of the organization as a whole

Intraternships offer a wide range of benefits for both employees and organizations

Some key advantages:

1. Internal Talent Development: Intraternships provide a structured platform for nurturing internal talent, allowing employees to enhance their skills, explore new areas of interest, and develop expertise within the organization.
2. Cost-Effectiveness: Training existing employees through Intraternships can be more cost-effective than hiring external candidates. It eliminates recruitment expenses and reduces the learning curve associated with new hires.
3. Knowledge Retention: Intraternships enable the transfer of institutional knowledge from experienced employees to newer staff members. This knowledge sharing ensures that valuable company-specific information is preserved and passed down, enhancing organizational stability.
4. Increased Employee Engagement: Offering Intraternship opportunities shows employees that the organization values their growth and development. Engaged employees are more likely to be satisfied with their jobs, leading to higher retention rates and a positive work culture.
5. Promotion of Diversity and Inclusion: Intraternships can be designed to promote diversity and inclusion by providing equal opportunities for employees from different backgrounds. This fosters a more inclusive workplace, encouraging diverse perspectives and ideas.
6. Boosted Productivity and Innovation: Employees who participate in Intraternships gain new skills and knowledge, which can lead to increased productivity and innovation within the organization. They bring fresh ideas and perspectives to their roles, driving continuous improvement.
7. Succession Planning: Intraternships play a crucial role in succession planning by identifying and grooming potential successors for key positions. This ensures a smooth transition when senior employees retire or move on to other roles, mitigating the risks associated with leadership gaps.
8. Enhanced Employee Loyalty: Investing in employees' professional development through Intraternships fosters a sense of loyalty. When employees feel supported in their career growth within the organization, they are more likely to stay committed to the company in the long run.
9. Adaptability and Skill Alignment: Intraternships allow organizations to align employees' skills with the company's current and future needs. This adaptability ensures that the workforce remains competent and capable of meeting evolving business demands.
10. Positive Employer Branding: Organizations that offer Intraternship opportunities demonstrate their commitment to employee growth. This positive employer branding can attract top talent, enhance the company's reputation, and make it an employer of choice in the industry.

Free internship online course 9 November 2023

INTERNAL INTERNSHIPS

The future of skills development

The BEE Codes of Practice allow companies to recognise the salary spend of staff members on Internships, Learnerships and Apprenticeships.  The most interesting and possibly the most neglected skills programme is that of Internships. 

To many an Internship involves bringing external people into the organization for workplace experience.  However the Skills Development Matrix contradicts this concept by referring to people on ABET programmes, which are typically provided for staff.

It follows that Internships can be extended to internal staff members.   This makes a great deal of sense as the internship programme delivers a number of benefits.

• The internship can be tailored to suit the employee and employer. It has an aspect of  on the job training to it to ensure that the skills learned during the academic modules are being applied in the workplace.
• Internships are far less rigid than learnerships with a shorter academic cycle. Many learnerships are not adequately suited to employees and they are very time consuming, often requiring self-study in the evenings.  Often this is impossible due to loadshedding.
• Internships cost less in terms of time and money than learnerships.
• There is distinct prestige advantage to companies where they position their internship programme as the industry standard.

Join us for a free online seminar on the 9^th of November 2023

 

We will cover all the technical aspects of internships for internal staff and provide the necessary evidence that this programmme is acceptable in terms of the BEE codes and how the entire company can benefit from such an internship programme.

The online course starts at 09:00 and should be finished by 10:30.  Space is limited to 100 people.  To book send an email to [email protected]

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

The difference between Broad-based Ownership Schemes (BBOS)/Employee Share Ownership Programmes (ESOP) and Trusts

Most people involved in the BEE world, including law firms are of the opinion that a Trust deed needs to fulfil all the requirements contained in Annexure B – D of the ownership code.  These are the annexures that cover BBOS, ESOPs and Trusts.  There are a number of problems with this approach

• All amendments to a trust deed including the replacement of trustees needs to be lodged with the Master of the High Court’s office
• The Master’s office is in a shambles it could take more than a year to get the updated Letter of Authority
• Annexures B (BBOS) and C (ESOPs) do not refer to Trustees and Trust Deeds. They specifically refer to Fiduciaries and a Constitution of the programmes.
• Annexure D refers directly to Trusts.

Studocu.com observes the following

While all trustees are fiduciaries, not all fiduciaries are trustees. Trustees specifically refer to individuals or entities managing assets in a trust, while fiduciaries have a broader scope and can include other roles where a duty of loyalty and care is required.

This is further corroborated by the 2008 Verification Manual that requires verification agents to interview trustees or “equivalent representative of scheme”.

It makes sense to have two documents when it comes to BBOS or ESOPs.  The first is the Trust Deed.  The requirements for the trust deed are far simpler than those of the BBOS.  In fact there is no racial requirement for Trustees at all.  This document should be broadly drafted to accommodate BEE requirements as well as the standard essentialia of a trust deed.  What it should do as well is refer to the Constitution of the Broad-based Ownership Scheme or ESOP.

A Constitution is a far more fluid and adaptable document.  It does not need to go to the master’s court and also does not have to be unnecessarily complex.  One of the requirements is that the Constitution must be made available to beneficiaries in a language that they are familiar with. 

Contact us for a  free consultation

Anyone who has a trust and have gone through a verification knows how complicated it is.  It can substantially simplified with a constitution.  Please contact us to discuss to understand what a BBOS or ESOP Constitution should look like and how to go about drafting this document.

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

SANRAL's tired argument. They lost a court case and clutch

From Moneyweb

The High Court in Gqeberha granted H&I Construction an interdict stopping Sanral from proceeding with the adjudication and award of two specific tenders in accordance with the amended tender scoring system as advertised by Sanral on 19 May 2023 in an addendum to its tender document.

Judge Nyameko Gqamana said in the High Court in Gqeberha accepted that Sanral is empowered in terms of the Preferential Procurement Policy Framework Act (PPPFA) to determine its own preferential policies and has a discretion to make its own policy choices regarding the specific goals it wishes to pursue.

The judge said the transformation agenda by Sanral to ensure broader black participation is commendable, a step in the right direction, and long overdue – but the policy has to be fair, lawful and rational.

“What troubles me more is that the changes to the scoring system [were] introduced without consultation,” said Judge Gqamana.

SMEC SA said the new scoring system renders the Broad-based Black Economic Empowerment Act (B-BBEE) a nullity and compliance with the PPPFA is undermined because compliance now only amounts to a fraction of the points.

H&I Construction along with nine other construction companies argued that their BEE programme (which cost more than a little bit of money) amounted to nothing.

I love the response from Themba Mhambi the chairman of SANRAL (clueless I would say)

That the court action by the construction companies will not deter Sanral from pursuing real transformation of the sector.

Followed by

Mhambi stressed that it is time for black South Africans – Africans, Indians and Coloureds – who had previously been excluded from benefitting from massive infrastructure projects to benefit alongside the well-established industry players.

“Therefore, don’t believe all the lies that are told that we want to kill these construction companies.

“We don’t want to do that. We want to support them. We want to strengthen them to get more business but there is one condition. That condition is that they must understand that South Africa belongs to all who live in it, black and white,” he said.

Mhambi stressed that those people who have in the past been excluded from benefitting from road construction, bridge building, pavements, manufacturing of guard rails, the production of asphalt must now benefit as well.

He said that is the condition – and that the condition does not come from anywhere other than the Constitution of South Africa.

“When these millionaire and billionaire companies say to us ‘we are going to take you to court Sanral because you are depriving us of the millions and billions that we are making alone’ I understand what they are saying, because you can’t be a millionaire or billionaire by sharing” he said.

This is noise, I use that term a lot.  They tried to pull a move that wasn’t supported by the constitution and legislation.  And when they get kicked down then they argue transformation. It’s a tired move.