Paul Janisch

Where does our favourite empowerment system fit in with Cyril's economy rebuilding programme?

Disclaimer: please excuse the uppercase usage for zuma, gigaba (abagig to this blog), davies (should be bolshie bob) and dud miyeni (in the land of sheer incompetence this one truly stands out, we are talking mkhwebane incompetent).

It’s been almost a week since Cyril’s SONA and our initial euphoria has been tempered by Gigaba’s reality biting budget speech.  It’s now patently clear that Zuma’s gallant attempt at destroying the economy was remarkably successful. That might be a little too lenient on the erstwhile statesmen. His lack of leadership has left the fiscus, the economy, the government and the country in complete turmoil. No amount of litigation and Zuma/Gupta dock-sitting is going to make this pain any more bearable. Cyril also has to live with the fact that the last nine years have created a massive trust deficit between the public and the government. Cyril’s words at the SONA were comforting and probably lulled us all into a temporary false sense of security.  But reality bites hard and we are unlikely to take his word at face value.  We want action. Zuma made all sorts of promises in his SONAs but it was only those that served the interests of his kleptocracy that were honoured.  Think about procurement set-asides that Dud Miyeni illegally imposed at SAA.

In spite of my cynicism I do recognize the importance of resuscitating the economy.  We can’t run away from this.  The imperative to create employment cannot be overstated. Social interventions like black economic empowerment (BEE) have to play a greater role in this process than they ever have before.  But they cannot deliver on this imperative in their current guise. If you consider the Gigaba has raised taxes and reduced the disposable income of most corporates, and taxpayers, there is now less money for extravagant BEE programmes.  Davies’ Marxist-inspired altruistic BEE codes are in severe danger of collapsing in on themselves. 

It’s been 3 and a half years since Davies gazetted his latest set of BEE codes. In that time he has also overseen the gazetting of numerous industry specific charters, culminating in the financial sector code in December 2017. This must have felt like a coup to him because he got it done in three years, three times faster than the previous one took to gazette. Over the last three years I have seen a number of companies simply falling off the BEE radar. Of the 100-odd qualifying small enterprises (QSEs – turnover between R10m and R50m) that I have assisted in the past decade, only one has attempted to be rated under the new codes.  The balance have either opted for non-compliance or simply restructured their shareholding to appear to be 51%black owned. The sole compliance company has gone to great expense and has come out in a far worse position than the effort was worth. A number of larger companies (turnover in excess of R50m) have simply requested their verification agency to give them a non-compliant BEE certificate. Not your average non-compliance certificate, one with five zeros on it. The reasoning behind this is simple, under Davies deluded regime if you have 54.99 points or zero you are still non-compliant. Why go to the extraordinary effort and expense to get to 54.99 points when the result is exactly the same as zero. I can only assume that the market is accepting these BEE certificates because I’ve heard of very little pushback.

These companies have fallen off the BEE map and with it their enterprise and supplier development as well as socio economic contributions. They are still skilling up their staff because being in business requires it and they are still attempting to meet their employment equity commitments. There is no incentive to go back onto the BEE map because they have chosen to exercise their constitutional right to retain 100% ownership of their businesses – something that would be regarded as racist…… Because of this simple omission they will make no contribution to emerging black businesses or charities. I’m sure Davies and his cabal of Marxist and militant employees are hatching all sorts of plans to punish these companies even further because of this. But this will be to no avail. They are lost to the system and it will be nigh on impossible to get them back.

What we need now are friendlier policies that encourage compliance, not policies that presume that all corporates are inherently racist and anti-transformation.  These policies need to encourage and reward transformation, unlike the current system that punishes. Most importantly it needs to embrace every company that is able to contribute, Davies’ head-in-the-clouds system exempts companies who are more than 51% black owned and turn over less than R50m from even bothering to contribute to the empowerment process.

What if Cyril took a different approach.  What if he appointed a minister of trade and industry who saw black economic empowerment in its correct context; a context which recognises BEE’s contribution to nation building and restoring the economy. He wouldn’t have to do too much here. He cannot change the BEE codes wholesale because it will show that ANC policies are not workable.  The business community would be hard pressed to swallow another change in the ANC’s transformation policy. All Cyril would need to do is remove the priority elements requirement.  These are the elements, like ownership,  that must be complied with.  A failure to do so results in the company dropping a level.  He should also reduce the points levels to those of the earlier versions of the BEE codes.  It would also help if SANAS were told to drop their ridiculous levels of compliance checking and start giving companies the benefit of the doubt. But this might be too tall an ask for now.  This gesture would be a small step in rebuilding the trust that the zuma years have categorically destroyed and would bring those companies that have fallen off the radar back into the fold.

Business wants this country to succeed and is willing to play a significant role in this process, but it also needs to be shown that its efforts are making that contribution and that it is being acknowledged. Awarding BEE points for efforts that achieve these goals will make a major difference to the corporate lives of those contributing to employment and growth.

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

Dear Cyril now that you are chief of that rogue organisation

Dear Cyril Ramaphosa (notice the uppercase - there are very few aNc [one third uppercase] politicians that I refer to in the uppercase)

We've not met before although I have met a few of the people at your foundation and I am really impressed with the work that it does.  My name is Paul Janisch and I manage this piece of digital real estate.  To the best of my knowledge it is the only blog that focuses on matters of black economic empowerment.  If it isn't the only one then it is most certainly the oldest one with over 1000 posts on this subject and a few others on my children.  I suppose you could say that it is a whining blog - moaning about rob davies (bolshie bob as I call him - again in lowercase), his semi-competent department, his unreasonable BEE codes and how he has been actively involved in destroying what economy we have with red tape.

I know that you have your work cut out for you.  Getting rid of that moron zuma is probably your biggest priority and if the press are anything to go by jessie, maboozer and uys are going to make this very difficult for you.  Once you've overcome that hurdle, which most South Africans think is a non-negotiable, then perhaps we can look at whatever is left of the economy and how BEE plays a role in it.

I see that Mike Brown has recommended that you look at evkom and other disastrous SOEs first - that'll take you to the elections in 2078.  But I am the eternal optimist and I am hoping that you will be able to spend a little bit of time considering my proposal whilst fighting the aNc, rating agencies, the opposition, the temptations of higher office, the guptas making overtures and toilet breaks.  Here is my list of things to consider.

Black economic empowerment is an economic reality

A little obvious but not something that the last president of the anc understood.  I'll go a step further - we cannot have such huge numbers of people with little hope of ever getting beyond their anc-endorsed misery (the lowercase refers to zuma-era anc, your aNc has an uppercase N, more letters will be used in uppercase as you prove yourself).

I would suggest that it is vital to the survival of this economy.  More empowered people means more jobs and more money to buy those things that foreigners want us to buy.

Don't put a communist in charge of the one department that is supposed to transform the economy

bolshie bob was a dyed-in-the-wool red.  He had no clue when it came to promoting trade and industry, he's not supposed to (not that zuma understood that, but my how zuma was good at managing his member - 28 children and counting and he's barely started).  How can a person who is fundamentally anti-capitalist be promoting capitalism. It boggles the mind - he was useless.  I initially thought that he was the most useless minister in zuma's cabinet but des and enawz showed us how low you can go.  Thank god for butterbeelee - she took incompetence to special levels making bob one of the most competent.  Alas these levels of competence delivered nothing.  When you get a moment and perhaps a bottle of whiskey (I prefer Black Bush myself) attempt to read what he calls the BEE codes of good practice.

My suggestion is that BEE should go to Treasury, this of course pre-supposes that abagig is moved to the ministry of churches and other religious reflection.  

Concentrate on the basics.  Get the basics right

The education system is broken.  It is churning out people with little hope of being able to read, let alone become employed.  Don't be like bob and think that if every corporate throws millions at the skills development of unemployable black people that the problem will resolve itself - they won't and it won't.  Accept that your party has made a mistake here and find ways of working with the private sector to resolve this problem - try to avoid the zuma-approved method of thanking corporates for their donations by reminding that they are white monopoly capitalists.

Find incentives for corporates to actively work with emerging businesses, both black and white, to move beyond the subsistence level.  bob seems to think that 15 points on a shitty scorecard is incentive enough - it's not.

Do something about these revised BEE codes

bob and his ilk got it wrong.  They aren't working. 

• Firstly  - they are ridiculously complex.  It's one thing to have complexity but another thing to have complexity that the department that is tasked to manage them cannot understand.
• Secondly - they are too expensive to implement.  No company is going to hand your foundation a cheque for 6% of payroll even though we all know that the beneficiaries are given the best possible opportunities through your initiatives.  They can't afford it because there is no economy to support it.
• Thirdly - the introduction of priority elements (negative marking) is the greatest disincentive for any company to implement your codes.  Surely (oops I'm starting to sound like Stephen Grootes) you would want companies to improve their score year on year not get worse.  I'm not sure how well you know the BEE codes but they succeed because of the procurement element. At the moment companies are doing OK under procurement because there are large number of old scorecards doing the rounds.  By this time next year scores will have dropped so dramatically that the largest corporates are going to drop a level. Once this happens the BEE programme as we know it will start to collapse - or perhaps that larger corporates will be forced to start encouraging fronting on a grand scale to retain their procurement score.  Most likely they will stop buying from legitimate (all gupta businesses are not legitimate) businesses and these businesses will have to layoff staff.  I suspect that this is what bob and co actually intended - not very good for an economy that is broken.
• Perhaps you could consider removing the priority elements and going back to the old recognition levels - you know where a level 8 was thirty points.

 People from SANAS need to understand a LOT about business

As it turns out, they know so little it's patently frustrating.  It's not SANAS that gets the brunt of this ignorance, it's the verification agencies (even the useless ones - more on this next month).  SANAS wants documents - we give them documents.  Where documents aren't available SANAS insists on independent verification that these documents are not available.  Sometimes this is doable - but often the conversation goes along these lines.

Verification Agency (VA) - we need a shareholders' agreement.

Paul Janisch (PJ) - they don't have one

VA - then we'll need an auditor's letter confirming that there is no shareholders' agreement.

PJ - you do know that a shareholders' agreement is not a requirement under the Companies Act

VA - we need an auditor's letter

PJ - (bemused) you do know that a shareholders' agreement is a legal document.  It's got nothing to with an auditor

VA - (frustrated) give us the auditor's letter or SANAS will take away our fucking licence

PJ - but this is like telling a person that they need a driver's licence to ride a bicycle.

VA - SANAS will take away our fucking licence. Give us our fucking letter

 So I gave them this , and also note it wasn't them that used the fucks.

I hope you can see how ludicrous this is Cyril.  The verification process now takes about six weeks.  It's laborious and unpleasant for all parties involved.  And this is entirely because of SANAS.  

The BEE Commissioner should worry less about fronting and do her job

Which is to provide guidance.   These codes are so difficult to understand and implement that if the Commission just did 5% of her job properly then it would make the implementation of these codes a little more apparent.

 __________________________________________________________________________

I probably have a lot more to write but you have more on your plate than this.  We are expecting that when you become president of the country that you will appoint people to your cabinet that are able to read more than bank notes and proof of payment notifications.  Perhaps someone from your faction will read this.  I'd be more than happy to come and talk to you about it - just not in Cape Town.

All the best - Mr Cyril Ramaphosa.  By the way, my father Peter sends his regards, he tells me he met you a few times.

As we sit poised hoping that zuma and ilk no longer occupy their office next year

To put the blame zuma solely for the mess that is South Africa is too simplistic, but we can blame him for pretty much 99% of the mess.  He is a despicable specimen.  Such a strange man, one who firmly believes that he is well within his rights to pilfer and plunder and his cronies are just as entitled, or to quote Ivor Chipkin (loosely) "they view this plunder as a noble thing".  This is a bed that the anc made for ALL OF US TO LIE IN.  

Here we are waiting until Sunday to see if zuma's ex cracks the nod or the lesser of two evils, Cyril, makes the cut.  There have been a few articles in the Daily Maverick this morning on this weekend.  Grootes, one journalist who I think has credibility across the political spectrum even though he's white, wrote a story this morning on the potential chaos that could erupt if zuma's ex becomes president.

A victory by Dlamini Zuma could also serve as a signal for many in the middle classes to engage in politics. Here, as in many other countries, middle-class people tend not to march. White South Africans, who generally don’t have a culture of marching, have tended to stay away from getting their feet dirty; some see attending a book launch as a supreme form of political protest. That could change. This middle-class group of people may not have the numbers to change the results of elections, but they do have significant resources, and may be exercised enough to use them.

But the problems that a Dlamini Zuma-led ANC may face in middle-class society may be nothing compared to what will happen in Parliament. The opposition parties would not be able to contain their joy upon her victory. Every opportunity in Parliament will be used. Malema will be uncontrollable, the DA will be more disruptive, and it will be, as they say, “lit”.

However, the real problems would be in the ANC’s caucus. At the moment the body that includes people who voted against Jacob Zuma is hanging together, just. Possibly the only reason Zuma stayed in office was because ANC MPs were told that they could remove him at the ANC’s conference without splitting the party. With that option no longer open, there would be no reason for them to stick to party discipline. Many tactics can be used. Instead of outright public betrayal, ANC MPs can simply be “sick” when legislation has to be passed, denying the party a quorum. Confidence votes would be excruciating for the party’s managers, and of course the opposition would call them every week. The most powerful person in the country would suddenly be the Speaker, Baleka Mbete, who could decide whether a vote should be in secret or not. And even if she kept that vote open, you may find ANC MPs angry enough to vote against Zuma, or Dlamini Zuma, whatever the working relationship the pair might opt for.

Either way, the situation would certainly be almost impossible to manage.

In the far out areas, it is entirely possible that some communities, who already question the legitimacy of the ANC and government, will do this more intensely. This means more symbols of the state could be in danger. For these communities, these include clinics, police stations and schools. Zuma already tends to avoid these protest situations; a Dlamini Zuma-led ANC would surely find them even harder to manage.

If there's one thing about Grootes' writing that is now starting to grate, it's his overuse of the word "surely". Other than that I read his opinions religiously.

There there was an opinion by Bonang Mohale, who's the CEO of Business Leadership SA, speaking about how business must participate in national renewal. 

Business is society at work and to denigrate business is to denigrate a large part of the population. That is why a key pillar of our strategy is to promote the value of business as a national asset – not as an article of faith, but because it is business that will deliver the growth and transformation, without which the country has no future worth thinking of.

 In short, we need a growing economy that creates jobs, fuels transformation and poverty reduction and hastens the transition to a more normalised society.

As we have also made clear, business cannot do this work alone. We need a supportive government and a supportive policy backdrop – something sorely lacking in recent years. That is why we are so focused on the critical ANC conference that takes place in the coming days.

The leadership decisions taken there will be a critical determinant in the future trajectory of the country, in determining whether business is allowed to deliver its potential, or whether we are going to see a continuation of recent years where a combination of policy incompetence and corruption have helped derail the economy.

Whoever that leader is, business stands ready to roll up its sleeves and participate, at short notice, in an urgent programme of national renewal. That willingness and ability is in no way diminished by events at MultiChoice and Steinhoff.

Businesses make mistakes and make bad judgements. It is part of the corporate condition. As appropriate, they must be held accountable. But we must not throw out the baby with the bathwater. You cannot be pro-poor and anti-business. The schadenfreude at business’s discomfort over these episodes raises questions about whether these people seriously want to address the country’s pressing social challenges.

I have worked with a large number of companies, many small, some massive.  They all want to get on with business.  I have yet to meet a single corporate that doesn't understand the importance of transformation in the economy.  Every time this excuse for a government changes the rules they attempt to adapt.  But the government now needs to walk across to them and talk to them.  The trust deficit is skewed towards government's forked tongue.  

Here's to a Cyril victory on Sunday and a massive cleanup of everything zuma immediately thereafter. I don't expect this weekend to be pretty.

Whilst you wait for this rather poignant moment you could while away 24 minutes watching this very significant interview with Chuck D and Tom Morello - everything anti-trump is good in my book.

Monday's post will no doubt be expletive laden - out of relief or sheer anger.

 

 

More on gupta grabbing and their contribution to white monopoly capital

The last post on this was written in a relative hurry, Alec Hogg had asked for other opinions on the guptas and so I wrote the opinion and sent it to him, which he published.  I did spend a bit of time this weekend reading through some of the publicly available gupta emails.  A lot of it is run of the mill stuff, I think they were put up there to show that these emails are real.  They are all in .pdf format, you therefore can't check the headers etc.  

Before I get into one of the emails I happened across this paragraph on the sahara website

Sahara's on going sponsorship & continuous social development has reinforced Sahara's commitment to developing sport and youth in the country both at provincial and national level. With continuous support and endorsing development programs in education, contributing to the government's skills development programs, and active involvement in foundations that support technology participation in the education sector, the company aims to give a new innovative world back to the community that supports it.
Sahara Computers (Pty) Ltd is a "Black Empowered" organisation as per the South African Agriculture Charter

This paragraph is most likely an absolute lie, they refer to three elements that they are generously contributing to but yet their BEE scorecard shows a minimal effort in those elements.  I can't find earlier BEE certificates but I get from the emails from one Sekete Malebana-Metsing to the verification agency that in February 2016 they had nothing to offer on ED and SED.  The subsequent certificate shows zero for both SED and skills and 0.52 for ED/Supplier Development.  And yet they tell us on their corporate website that they are so generous.  If they were so generous then their scorecard would reflect it, why would you do all this stuff and not use it?

It is obvious that this paragraph is not current, they refer to a level six under the Agriculture Charter,  They still posted their revised BEE certificate up there without updating the website.

And yet the white monopoly capital allegations are still being peddled and gupta pillaging is justified.  One email  shows an opinion piece that could have been written by Haranath Ghosh, an ann7 patsy being sent to a number of gupta editors (moegsien williams being one of the recipients).  santosh choubey then forwards this to the [email protected] email address.  I assume this email address is group address and one of the recipients is bell pottinger.

Ghosh writes

Hi Sir
Please see attached opinion piece. kindly let me know if this can go in the paper after subbing.
This can go under Nompumelelo's name if you agree.
regards,
H Ghosh

I can't figure out who Nompu is, I suspect she was either a new age journalist or opinion contributor.  But it does show that the new age and other gupta media companies were very happy to write inflammatory opinion pieces and credit to a black woman.  This is almost perfect fake news.  

The top five richest men in South Africa are breeds of “White privilege.” Johann Peter Rupert,Nicky Oppenheimer,Christoffel F. Hendrik Wiese,Koos Bekker and Stephen Saad.This in fact proves that the white elite still own South Africa even if it is just 9% of them. Economic apartheid and its associated policies still remain.  Not only that but they create a strict racial hierarchy.

White people in South Africa have continued to reap the benefits of unearned privileges from the system that was. The mistake made was assuming that black entrepreneurship will soar amid white privilege again, wrong.This resonates with the fact that blacks never had the privilege to get educated, pursue self employment and were racially restricted, creating space for underdevelopment. Which brings me to my next point...

Black entrepreneurship will not develop because of the lack of skills that could not be embraced when  the white privileged ruled. Even so, when a black person tries to build their own economic success, and if it is in the same sphere as that of white dominated; it is bound to be sabotaged. According to them you should remain swimming with the small fish, while the whites remain in full reign. Apartheid is to blame, white privilege is to blame for black entrepreneurship not developing in South Africa.

It's not clear if this was published - although the Maverick would have certainly published it as an opinion piece.  Whether it was published or not, it pushes the white monopoly capital story hard.  I find it brilliantly ironic that the owners of this media are bolstering the most corrupt politicians in the country by stealing from the same black people that this article refers to.  They themselves appeared to make no attempt do the opposite of what this story posits.

gupta's giving exposed - such generosity

You might have heard that the gupta-leak database is being made available to any investigative journalist who may have an interest in our dear country trashers.  Alec Hogg sent out a notice last night telling us that 

But even worse came later for the plundering friends of president Jacob Zuma. At the request of the SA Parliament’s Portfolio Committee on Public Enterprises, a chunk of documents from the incriminating #GuptaLeaks have been made publicly available online.

Published by the Platform for the Protection of Whistleblowers in Africa (PPLAAF), a selection from hundreds of thousands of emails, documents and invoices is there for everyone to see, neatly divided into easily searchable sections. So if you ever fancied yourself as an investigative journo here’s your chance to “join the dots.”

PPLAAF says the site will be accessible for the next 10 days, so no time to tarry. The link to this veritable treasure chest is here.  Happy hunting.

Amongst the numerous emails are a number of BEE mails. I haven't really looked through them in much detail but the ones I did look at were about their 2016 BEE scorecard and information that had been requested by the verification agency.  This prompted me to have a look at the BEE scorecards I could find that belong to our atpug adversaries.  I found two - TNA (the new age) and Sahara Computers - both done by a reputable verification agency who have told me they've since cut ties with them.  I'm not going to question these scorecards because I know the guys who did them and I have huge amount of respect for them.  But take a look at them.

Sahara Computers (new codes)
Element	Weighting	Score
Ownership	25	19.29
Management Control	23	5.4
Skills Development	25	0
Enterprise and Supplier Development	55	0.52
Socio-Economic Development	12	0
Overall Score  (non-compliant)	140	25.21
The New Age (old codes)
Element	Weighting	Score
Ownership	23	15.24
Management Control	11	10
Employment Equity	13	7.12
Skills Development	17	13.6
Preferential Procurement	26	9.45
Enterprise Development	11	0.18
Socio-Economic Development	12	0
Overall Score  (level 5 expired)	113	55.59

I hope that the good reader sees what I see.  No score for socio-economic development (SED) and nothing for enterprise (etc) development (ED).  For the uninitiated SED is charitable donations and ED is the development of black businesses.  They obviously don't feel as though they need to contribute to these two elements because it detracts from their core business of taking stuff.   We shouldn't be surprised at all.  But next time their supporters like andile half-pint (who is obviously terrified of the Israelis and he should be) tells you how great they are just consider that in both cases their businesses turned over the QSE threshold (over R50m under the revised codes) and they are remarkably ungenerous.

But there is a bigger story here, one about how the government will turn a blind eye to "empowerment" to further their own corrupt needs.  The guptas are obviously so confident in their government connections that they do not need to even make a vague attempt to comply with government's empowerment requirements.  Take a look at their potential competitors.

Sahara probably competes with companies like IBM (level 2 revised codes), Dell (level 3 revised codes), HP (level 2 revised codes) and others.

the new age, apparently derives its advertising revenue from government sponsorship.  Besides the fact they we have no idea what their readership is they would compete on a BEE level with Times Media (level 3 revised codes),  Media24 ( (level 3 revised codes), CTP (level 4 revised codes) - and iqbal but he's up there with the discredited atpugs, I'm not going to bother with his company.

This is pretty much in the same league as the Waterkloof landing - it's extreme arrogance and another atpug finger.

 

 

 

Related articles

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HSBC accused of 'possible criminal complicity' in South Africa

Has Treasury been captured by the black business lobby?

Is there any ANC left to organise a piss-up in a brewery?

This is an updated version of an earlier post

Recently (actually 2011 but the sentiment remains and the language is much stronger) my friend  Kevin announced that the ANC couldn't organise a piss-up in a brewery. This is an appreciation of the anc government's ability to organise a piss-up in a brewery, or organise anything for that matter.

We know that many senior anc members enjoy the finer things in life, like Maybachs, Range Rovers, Glen whiskies, Hansa Pilsener and nice watches, the value of which could feed a small family for a lifetime. It therefore stands to reason that the taxpayer's money is plentiful - hence wastage is really not a concern.  This piss-up would have to cost in the millions. Under these circumstances the organisation of such a piss-up would need to go to tender.  We can safely assume that Eskom (Eskom can barely organise us power so they would be perfectly suited to manage this process) would  be the company putting this little event out to tender.  Unsurprisingly the tender is likely to be awarded to some gupta front via McKinsey who outsource Trillian, who know fuck-all about piss-ups but know an incredible amount about being paid for knowing fuck-all.  Trillian takes their 50% and finds some anc crony to outsource another firm to source service providers for this event (who will never be paid).

Now the fun really starts

• The members of the very fractured  anc start fighting with each other about the guest-list, the venue, the date, the fact that the workers (who haven't been invited) weren't consulted.  Court action is threatened.
• The youth league has a practice run at a prominent nightclub, drop their trousers and threaten to boycott the event because the beverage of choice doesn't include Oros, which is a great mixer for cane.  They also object to the fact that more of the president's wives have been invited than youth league members.
• The women's league insists that zuma is entitled to take another 50 wives before the event and that the weddings should be paid for by SAA.
• A court case ensues.  It's not clear who is suing who but an appeal is successfully applied for.  Four years are lost

Five years later piss-up organisation is revitalised, however there are few mishaps

• The road to the venue is littered with patches of what once was road and potholes are now the norm.  The patches of road compromise the hard suspension on the Maybachs and Range Rovers and other publicly funded personal modes of transport.  Helicopters are not considered as there are no more helicopter pilots left in South Africa as they all work in Autstralia.
• The guptas stage a strike from Dubai because there is no military airport nearby to land their entourage.  SAA offers to build an airport but realise they have dudu in charge and have no money. A press conference is called in the name of transformation.
• The licence to sell liquor at the venue has been irregularly awarded to dududoos, one of zuma's 800 children. He sees fit (because he is such a likable guy) to charge the taxpayer a premium for  the privilege of using his liquor licence.  Nothing like stealing from your own.
• The brewery itself (which once was profitable) has been sold to the saxonwold consortium which is made up of  recent mining charter beneficiaries. This has resulted in the brewing accouterments being shipped off to Dubai for saltwater purification purposes.

This story then gets out to the press who report on the corruption that occurred within the tender process and so the piss-up in the brewery is cancelled.  sahara computers tells ann7 that they have successfully installed all the desktop computers at the venue.  Computers weren't spec'ed in the tender document but that's mere detail.  ann7 gets its experts on TV who blame white monopoly capital for not tarring the road to the brewery and hence have forced the piss-up to be cancelled. 

In short – it is highly unlikely that the ANC government is capable of organising a piss-up in a brewery.

 

We ain't never going to survive unless we are a little litigious

A persistent question arises from the chamber’s affidavit: why did it not at the time contest the second iteration of the charter implemented in 2010 when it contends so strongly in the affidavit how unhappy it was with some of the clauses? It does make the point that it did not sign the 2010 charter.

Peter Leon, a partner at Herbert Smith Freehills, says the chamber should have acted more decisively on the 2010 charter. "They should have attacked it then and there without leaving it for so long. My sense is that the chamber at that time did not want to rock the boat and disturb its then modus vivendi with the department, which was [in] a rather different era."

Via Business Live

Peter Leon is correct in this analysis.  Seven years ago zuma was in the ascendancy.  We knew he was a crook and a liar and thief and an extraordinary manager of his member, but we hoped that he would be reasonable and put South Africa first. It wasn't only zuma that we thought would be reasonable, it was also the anc.  We thought there was hope, we'd all play along.  Both zuma and the anc proved to be the contrary, it's difficult now to figure out which of the two has been the most deceitful.  We didn't litigate back then.  We now have no choice.  They don't care so we have to.  

Back to zwane

"It is helpful, but not a legal imperative that stakeholders are in agreement with the principles" which the minister determines in developing the charters, he said. The department will present similar arguments in its defence of the third charter, with (z)wane arguing he consulted more than 60 stakeholders and could not just respond solely to a single stakeholder, the chamber.

We saw this with the revised BEE codes and the charters that have been gazetted subsequently.  bolshie bob did consult with stakeholders (as zwane did) but not the stakeholders that actually have to implement the codes.  It's not news that I wanted to go to court to get these codes blocked on the grounds of their reasonableness and constitutionality but I was too early.  That was four years ago, companies weren't willing to take on the government.  That's changing now.  I know a court case is likely; it might not be led by me but it's coming.

There's a strange psychology that this government uses when it comes to compliance and "transformation" they would rather kill an industry than have it transform.  This is exactly what zwane's latest petulant fit is about. If you won't do what I want I'll destroy the industry, I'll do this in the name of transformation (think dud miyeni-millions to steal).  Now zwane doesn't know to care about investor confidence because the guptas haven't told him to consider this.  bolshie bob is no different - I am increasingly coming across companies who aren't going to get on the scorecard with the best intentions and they couldn't be bothered now.  This is what bolshie wants - he'd rather have companies not comply at all than make an effort to comply and be rewarded with a BEE score.

 Is our fate Sealed?  Not if we are a little crazy (litigious)

Related articles

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Draft PPPFA regulation disgust (discussed and cussed)

Has Treasury been captured by the black business lobby?

abagig is talking radical economic transformation

It would be a mistake to react to the recession by focusing only on the growth of established business and letting economic transformation fall by the wayside, said Finance Minister Malusi Gigaba on Thursday.

Addressing the media to chart the way forward following South Africa’s entrance of a recession, Gigaba said during the meetings government had with particularly black business people, it was stressed that inclusive growth and economic transformation should be advanced, despite the bleak economy South Africa finds itself in.

Gigaba said President Jacob Zuma called an urgent meeting last night with Cabinet ministers in the economic cluster where urgent interventions in the economy were discussed. “The President has stressed the urgency of a coordinated response and will convene a full day meeting in two weeks to address the obstacles delaying finalisation of policies.”

As per Media 24.  This is poorly disguised abagig rhetoric for radical economic transformation.  amuz is hosting a meeting - this will be pilferage at an escalated level.  

awdoz, enawz sdrawkcab. Will ruling be decree work?

There are two personages that should not be spared today's vitriol.  awdoz is the bee commissioner - great name when spelled backwards.  wabenzi-gupta boy's name spelled backwards is enawz.  awdoz and enawz are attempting to rule by decree.  Let's start with enawz (you can pronounce is ehnause or eenouse if you choose). enawz has pushed through his mining charter which calls for "radical economic transformation" as well as 30% black ownership.  The problem that enawz faces is that he is both not clever and he hasn't followed due process.  Already we've seen the mining shares take a knock.  What surprises me about enawz is whether he hadn't anticipated that there would be a market and legal kickback - we know that he expects other types of kickbacks because of his aptug relationship (I love this backwards stuff).  Why is he pushing this through -  the chamber is going to block it. 

Let's move onto the BEE Commissioner who has all of a sudden decided that she too can rule by decree.  A while ago she published another of those stunningly well-written opinion pieces about when the last BEE certificates under the old codes could be issued.  You'll probably find it somewhere here.  I initially ignored this because again it's an opinion and that's all.  You can see what I wrote about her opinions elsewhere on this blog.  In the newest opinion (PRACTICE GUIDE 02 of 2017 ) she states (as an opinion I stress) 

11. ..........B-BBEE Commission in accordance with the requirements to advice on the interpretation of any provision of the Act as per section 13F(1)(a) and (3)(b) (ii) of the B-BBEE Act, has concluded that the application of the old generic codes lapsed on the inaugural year the amended codes came into effect.

I didn't want to lumber you with her logic. As usual it's not bad, but it's her opinion.  We know that she's just opinionated.  This has really got her goat.  It seems that no one is taking her seriously.  She has decided to approach the Association of B-BBEE Professionals (ABP) and told them to withdraw all certificates under the old codes issued after the 30th of April 2016 - a year after the note about financials ending before 30 April 2015.  She apparently wants to go to court to get a clarification order - but has decided that before she gets to court she'll rule by decree (something her boss bolshie bob is very wont to do).

AND WHAT DID THE ABP DO?

Hulle het "fok die korporaal" gese.

We therefore could not reach a consensus as the B-BBEE Commissioner is still of the opinion that the Practice Guide 02 of 2017 stands and that Verification Professionals must withdraw these certificates from the market. Whilst the practice guide is not legally binding, the B-BBEE Commissioner expects the Verification Professionals to abide by it and withdraw these invalid certificates and where Verification Professionals do not heed this call, the B-BBEE Commissioner’s office will institute legal action as per the powers vested on her office by the B-BBEE Act as explained in the Practice Guide 02 of 2017, paragraphs 13, 14 and 15. (Against any certificate she comes across).

We understand that this is a very difficult time for our Members and the Verification Industry at large because of the potential negative impact which will have huge implication for the Verification Professionals and the industry. After discussing the application of the 18-month rule with Members we also believe that Verification Professionals did not intentionally sought to delay the implementation of the amended Codes. We therefore will be seeking a legal opinion on the matter and will advise accordingly

Something happens to public office holders, I doubt it's a uniquely South African issue, they just get a little too drunk on power.  In the case of enawz, I can't be sure that he's drunk on power, I just think he's thick.  He's out of his league, he's in the wrong province, he's badly advised and is now attempting a Comrades marathon on a three metre plank.  We don't expect much more from him. If you don't appreciate the sheer scale of his lunacy  perhaps this will clarify it for you

The Commissioner is different.  She's not thick, she's nowhere out of her league and I'm not so sure that she's badly advised.  I think the problem lies in the fact the no one takes her seriously.  That unfortunately for her comes with the territory.  When you work for an institution that is premised on arbitrariness in the form of draconian BEE codes then you are up against it. 

My advice to awdoz is to talk to the people you are supposed to be working for.  There are stories about her being aggressive and unpleasant and very unsympathetic.  If you want a hint of the aggression take a look at the FAQ's on her website.   Id est

What are the penalties for non-compliance?

The amended Act ha (sic) specified amongst other the following penalties: 10 years imprisonment for misrepresentation, 10% fine of annual revenue, 1 year imprisonment for failure to report misrepresentation and 10 year restriction from doing business with government.

 Er what?  What they are saying here (notice I didn't say awdoz) is that those companies that come up non-compliant are liable for 10 year in gaol.  Really!!!!  

awdoz, you'd get better results if you stopped behaving like an ANC-deployed cadre and started talking to your constituents.  Ask enawz about this, he's in for a fucking rough time (along with that doos amuz and his buddy abagig).