Paul Janisch

Zuma appoints new BEE council. Really?

Zuma has appointed new members for the presidential black economic empowerment council, his office said on Thursday.

They are:

- Trade and Industry Minister Rob Davies; (communist - liabilitiy)

- Susan Shabangu, Minister of Women in the presidency; (useless mining minister - liability)

- Labour Minister Mildred Oliphant; (look at the state of employee legislation - draconian. All under her watch.  Liability)

- Public Works Minister Thulas Nxesi; (Zuma man - liability)

- Zingiswa Losi, the second deputy president of the Congress of SA Trade Unions; (trade unionist - massive liability)

- Tantaswa Fubu, president of the Association for the Advancement of Black Accountants of SA; (less of a liability)

- Puleng Tsebe, deputy chairman of Disabled People SA; (don't know this person, my guess is liability)

- Sandile Zungu, vice-president of the Black Business Council; (professional black, has run a business, but exists because of Zuma and it does not appear that business respects him - massive liability)

- Clive Manci, member of the Board of Business Unity SA; (seems to be a bona fide businessman - I approve)

- Eltie Links, chairman of Doing Business in Africa at the Stellenbosch Graduate School of Business; (president of the AHI, OK)

- Chantyl Mulder, senior executive for professional development and transformation at the SA Institute of Chartered Accountants; (Very nice person, but knows as much about running a business as Rob Davies.  Liability)

- Lefadi Makibinyane, chief executive of the Council for Consulting Engineers SA; (OK - not bad)

- Thami Mazwai, executive chairman of Mtiya Dynamics; (Bitter man - chip exists,  ANC patsy, MASSIVE LIABILITY)

- Yershen Pillay, chairman of the National Youth Development Agency; (probably a liability)

- Sankie Mthembi-Mahanyele, former housing minister and Central Energy Fund chairwoman; (Zuma person - liability)

- Mike Mlengana, president of the African Farmers Association of SA; (why him, why? Liability)

- Zinhle Cele, deputy secretary general of the Progressive Professionals Forum; (Let's be clear about this.  This is jungle jim's baby.  It's an ANC organ and a liability)

- Koko Khumalo, deputy president of the Black Management Forum and; (The BMF is getting its act together.  I don't expect this person to be the voice of reason amongst this crowd of Zuma cronies.  Will ultimately amount to nothing)

- Caroline Magadla, treasurer general of the SA National Apex Cooperative. (Can't find anything on her.  She's spared my analysis)

via www.iol.co.za

We need to see this in context.  The Amended BEE Act (which apprently will come into effect this month)  states that these people will be PAID for doing this - so much for Nene reducing government expenditure.  Zuma has filled it with mostly black people (other than Chantyl), many of whom are his cronies, buddies, mates, backers etc.   The timing is almost perfect. How are we ever going to take them seriously. Thank god Ellen has her hands full with the Zuma-approved tactic of delaying the inevitable, and is no longer on the council (although she might need the money).

But my question is very simply, if BEE is now a white problem, which the new codes go to great lengths to stress, then why do we not have white business people sitting on this council.  You've got a bunch of people pronouncing on BEE and its implementation and they are exempted from dealing with the challenges in getting Rob's codes off the ground. 

This is like having a bunch of plumbers deciding how dentists should behave.

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Malema predicts an early exit for Zuma

Mr Khoza said there were no grounds for the ANC to remove Mr Zuma from office because he had not been found guilty of anything.

via www.bdlive.co.za

Very true, it's because you won't allow him to be tried.  We want him in court, and if a court finds that he is as pure as the driven snow then we were wrong.

On the face of it, Zuma is a scumbag and the ANC are idiots for allowing him to continue fucking the country up.

But then we all know this

What Nene will not receive, measured in Nkandlas

Yesterday's post looked at the total cost of skills development for 9 companies. This table shows how much less money Nene (and SARS) is going to receive.  For those MPs who are numerically challenged, the total amount is 2.29 Nkandlas. The going rate for a Nkandla is R246m.

Company	Target spend (6%)	Additional spend required over and above current spend of 3%
Standard Bank	887 760 000.00	443 880 000
MTN	402 540 000.00	201 270 000
NASPERS	524 280 000.00	262 140 000
AECI	178 560 000.00	89 280 000
FirstRand	637 200 000.00	318 600 000
Telkom	591 660 000.00	295 830 000
Nampak	212 100 000.00	106 050 000
JSE	24 300 000.00	12 150 000
Nedbank	560 940 000.00	280 470 000
TOTAL	4 019 340 000	2 009 670 000
Tax deduction (28%)	562 707 600.00
NKANDLAS	2.287429268

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Letter that business really needs to write to Zuma, but will not

So we are now telling you in public what we say about you in private. We’ve had enough of your threats, your corruption, your incompetence, your incessant interference, your empty promises, your racism, and your ideological fantasies.

via www.bdlive.co.za

So well written and so true.  I was sitting with a black CEO who was cursing the Zuma government but told me he could not express this anywhere else.  Here you have a true captain of industry who would love to tell Zuma how unloved he is.  And there is more

We tell you little of what we really think because we fear tender blacklisting and having licences withdrawn by officials whose abuse of due process is now legendary throughout the capitals of the world.

Mr Zuma, it is time you and your colleagues understood that we have more options than you do. You cannot go anywhere. Many of us can. We also know how to exit this country and disguise it as an empowerment deal.

This fear of reprisals is real. The moron knows it and his goons know it too.  They are now building up a state to mirror the Apartheid machine (but with a fraction of the competence).  See what Nasty Mtetanus wrote in today's Business Day

Another argument is that a restriction on foreign ownership will damage investor confidence, but some things you do because they are right and the government’s overwhelming obligation is to be proactive in its duty to protect the security of the state.

And then he concludes with

We have no doubt that the amended legislation is a responsible course of action in the best interests of the people of SA and that, in time, even the critics will come to realise this is true.

Let me tell you something Mtetanus, the only realisation that the critics will come to is the one that they've known since 2009 and that is that Zoomer and you and your buddies in the Zumabond are a cancer.

 

This is the weirdest search on my blog

If a page refers my blog I get to see what was referred.  Most of the time it's Google searches on BEE compliance etc.  There's quite a lot of interest in other African countries.  But I've never come across this one before.

To be honest I don't think he even knows who he banks with - why should he when he's got the Guptas, Reddys, Shaiks and Zungus.

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Hawulers or straight from Nomonde's monde

We are here today to bury …………….

In my opinion black economic empowerment as a policy has about three years to live from April 2015. It will survive in certain areas but as far as the general business population is concerned it will be a non-event. Yes there is a great concern about the policy that Rob Davies has published – but in fairness to Rob, every one of his policies are cause for concern. His love of red tape is the stuff of legend. In some cases he is going to seriously hamper any form of economic growth, in other cases like that of BEE it will just fade away – just like the memories of Zuma, Davies and cronies.

So what happens in the next three years? The Wall Street Journal is paying attention to Davies' policies. In a very well written blog post for an international correspondent, Gregory Millman writes

The changes seem to have some wondering whether South African business is worth the trouble of complying. One source familiar with the thinking of U.S. companies in South Africa requested anonymity but emailed, "The new Codes that will be implemented in April 2015 are seen as very difficult to comply with. Ownership will be a mandatory requirement…the new Codes are going to have the effect of firms looking elsewhere to set up office.

As damning as this paragraph is, it's not something that we haven't seen before. I suspect that this is probably closer to the last straw. BEE in itself is not the biggest concern that foreign businesses have; they worry about labour issues, currency volatility, political instability and the Promotion and Protection of Investment Bill. Regarding the latter, EU Trade Commissioner Karl De Gucht said

You have unilaterally put an end to bilateral investment agreements. This is bad policy. You need investment. This is not the way to do it. We, the EU, are the biggest investors in South Africa. Our investment is going down.

Perhaps echoing the sentiment that many US companies express Millman writes of ownership

Some approaches to compliance with B-BBEE can put companies at risk of non-compliance with the U.S. Foreign Corrupt Practices Act. Companies often achieve ownership targets through up front share grants to black partners, with the purchase price paid out of subsequent dividends. "It is almost a government-enforced slush fund," said one Washington D.C. based international trade attorney. "The requirement to cut in black South Africans basically invites companies to find a mechanism to transfer wealth to a select group.

It's clear that foreigners have had enough of Davies and his rules.  Soemone said to me that he needs his head read, it's already red.

What then about those who are going to be left having to comply with BEE once everyone has stopped bothering. Certain companies have contractual obligations to meet a certain BEE level in order to retain licences. Gambling is one- they have to stick to a level 2. Liquor licenses (which fall under the DTI) are the next to do this. But that's not all, the Manufacturing Competitiveness Enhancement Programme (MCEP) requires companies to be a level four contributor or show how they will become so within two years. Those who apply for this will need to consider that the revised BEE codes kick in in April 2015 and a level 4 (under an impossibly onerous scorecard) is now 80 -90 points. Do those who want to apply for grants under this programme know what they are getting themselves in to?

In each of Davies' policies it appears that he thinks that people WANT to go through all these hoops. He uses the word "incentivise" often – but offers no incentives at all, just red tape.

There is an upside. I think that BEE has run its course, I also believe that those connected professional blacks led by Sandile Zungu know this too. They've devised a policy that allows them to milk the system (akin to a licence to loot) for three years. By then they've sown up all the government business and have retired extraordinarily wealthy. They probably also know that political patronage is a fickle game – when your meal ticket has left the building you are thrown out with them. It'll be like the fall of the Berlin Wall, the BEE soldiers will turn a blind eye and companies will stop complying. The trick now is to be the correct lip-service to the policy so that it appears as though you are "committed" to it in the interim.

As to where the poorest of the poor who live because of donations under SED are going to go for money – that needs to be seen. I expect a great deal of hunger and dissatisfaction from these people.

What then are we burying, BEE or South Africa? The answer is very obvious under the Zuma government.

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ANC were campaigning this weekend, buffoonery but no Zoomer

Those poor volunteers handing out pamphlets on the corner of the William Nicol and Republic (in Johannesburg).  I did not take a pamphlet but my mate Chris did.  I would imagine that these somewhat deluded campaigners could count the number of comments from passersby that didn't refer to Nkandla on one hand.  I thought I'd help the ANC with their campaign logo.  I think it's a little more apt and does talk to their eternal toilet fascination.  

You'll notice that there is no visage of our (pure as the driven donkey-cart) dear Zoomer.  I would imagine that his image would piss off most urban voters.  The rural people, specifically those in KZN, but not Nkandla, are maybe a little more receptive to that smug, Angizwa/Angazi grin.

It's not this blog's business to comment on Thuli's Nkandla report.  But I will say that this paragraph reinforces the notion that Zuma is a complete buffoon and continues to portray himself as such.

(Madonsela let) Zuma off the hook on the complaint that he misled Parliament by saying his family paid for the buildings in Nkandla, not the state. Zuma forgot to mention the visitor's centre, also a building but paid for by the state.

"I have accepted the evidence that he addressed Parliament in good faith and was not thinking about the visitor's centre but his family dwellings when he made the statement,"

This reminds me of a job interview I had years ago where I asked the prospective employer whether he had medical aid.  He responded affirmatively, yet the package they offered me did not include medical aid.  I realised afterwards that he had chosen to interpret the question as  whether he had medical aid.  A more reasonable employer woud have interpreted the question as whether the company offers a medical aid.

If our president can be let off on a technicality where the public protector gives him the benefit of doubt when it comes to interpretation of the words "family dwelling" then he is too GODDAMN THICK to run this country.  Surely this is overwhelming evidence of this.

A bungling buffoon at our expense.

The ANC under Zuma does more than move my bowels, they make me sick.

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Impeach Zuma, says Twitter petition. Please sign the petition

A petition calling for the impeachment of President Jacob Zuma has began circulating on social networking site Twitter.

via mg.co.za

Also reported by News24,   Please sign the petition.  The old chop is recommended to be chopped for Nkandla - that would be getting off lightly.  I know the arrogANCe will ignore it but it all will help in chipping pieces of Zuma away - eventually we'll be left with an overactive member and a showerhead.  What am I saying - that is all the substance that is Jacob Zuma.

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