Friday, September 18, 2009

The ANC's War On Business

Two articles from the CityPress concerning the same subject. The ANC is determined to undermine businesses in South Africa. Somehow entrepreneurs grow on trees, must do, why else would they be purposefully pissing off those remaining few in the country demanding whites be removed and replaced with blacks. Between you and me, as a businessman, never, I would never do business in South Africa, not where a government tells me whom I may hire. This is yet another nail in the grand experiment that was the "Rainbow Nation". Bury it already!


Hitting them where it hurts

Employment equity laws will be beefed up and stiff penalties for defaulting companies will be introduced soon. That is if Jimmy Manyi has his way.

Manyi, the chairperson of the Employment Equity Commission and director-general designate of the labour department, has threatened non-compliers with prosecution for four years, but the law let him down as it lacked the bite to punish offenders.

But now that he’s earned himself a government position and a document setting out draft amendments to the equity laws and penalties has been tabled at the National Economic Development and Labour Council (Nedlac), Manyi is optimistic.

This week, he told City Press that if the proposed amendments to the Employment Equity Act were passed into law, employers that continued to exclude and marginalise blacks in their management structures would be hit where it hurt most – the bottom line.

“The only language that companies understand is the income statement. If they don’t see an effect on their income statements they will not understand. With these proposed amendments, we will hit their bottom line hard,” he said.

A month ago, the proposed amendments, which call for non-compliers to be fined 10% of their turnover and to be excluded from lucrative tenders, were tabled at Nedlac.

Read more (if you can stomach it)

And just so you don't think you can circumvent the new laws, the story below shows the ANC is determined to get whitey. Actually, lemme think, wasn't it big business that got into bed with the ANC on BEE and AA? Big business thought pretending to play along was enough, putting up shopfront blacks would appease the Marxists, ha ha, hmm, right. They don't understand the ANC greed trough is bottomless.

Nedbank goes through all the right motions

Barely two weeks after assuming her new role as Nedbank’s first black chief financial officer (CFO), Raisibe Morathi has found herself embroiled in a race row following allegations that she had been “stripped” of the responsibilities her white predecessor had.

The matter was on the agenda at a meeting between the bank and ­Department of Labour director­general Jimmy Manyi.

On Friday Nedbank’s top brass – including chief executive Tom Boardman, Morathi and the bank’s chairman, Reuel Khoza – met with Manyi to review the bank’s progress regarding transformation.

“The meeting was part of the DG’s review, which is aimed at assisting companies implement acceptable transformation,” said Manyi.

“The responsibilities of the new CFO came up as a new issue and the bank’s representatives have promised to consult all the role-players involved in the appointment and to come back to me before the end of October.”

The latest storm at the lender was triggered by allegations from Sello Rasethaba, chairman of the Lobbying Corporation of South Africa, that Nedbank had usurped Morathi’s powers and created an executive structure that transferred her responsibilities to Graham Dempster, Nedbank’s new chief operating officer (COO).

As Nebank’s financial tsar, Morathi reports to Dempster, who is in charge of finance, balance sheet management, information technology, strategic planning, human resources, marketing and corporate affairs.

The COO position was created after Morathi accepted the CFO role, and effectively means that Dempster is second-in-command to Mike Brown, who will take over as Nedbank chief executive officer (CEO) when Boardman retires in March 2010. Morathi replaces Brown, who has been CFO for the past five years.

“Morathi is a CFO stripped of all the functions that previous CFOs had, including finance and balance sheet management.

“The question is, what is it that Morathi is going to do? One is led to conclude that Nedbank is making a mockery of what black economic empowerment seeks to achieve and also violates the requirements of the JSE on the duties and responsibilities of listed companies’ CFOs,” ­Rasethaba said.

The Association of Black Securities and Investment Professionals, a mouthpiece for black professionals in the financial services industry, also questioned why Morathi was not reporting directly to the CEO in Nedbank’s new executive structure.

“The decision to change the management structure and reporting lines of any organisation is one that is made by the CEO with the support or buy-in of the board.

“Interestingly, a quick perusal of the annual reports of Standard Bank, Absa, FirstRand and Investec reflect a structure where the CFOs report directly to the CEOs,” said Absip CEO Masedi Molosiwa.

“We will engage individually with Nedbank and Raisibe to understand the executive structure. A key element of advancing the transformation agenda is the opening up of real opportunities with meaningful roles for black talent where there is a direct link between the title and the scope of work,” he said.

After the meeting, Khoza said Morathi had assumed 70% to 80% of Brown’s previous functions, excluding balance sheet management and risk management. The lender’s balance sheet was worth R557 billion at the end of June this year.

“When we interviewed her (Morathi), she was strong in about 70% to 80% of what was required for the CFO position. By her own admission, she said she would like to ramp up on Basel II and risk management.

“We never imposed any responsibilities on her and when she believes she has ramped up sufficiently on Basel II and risk management, it will be her call to assume back the remaining responsibilities,” Khoza said.

Basel II is a set of world-class recommendations on banking laws, first published in 2004, which stipulate how much capital banks need to put aside to guard against the ­financial and operational risks they are faced with.

Khoza said Morathi was appointed ahead of experienced white candidates to darken the pigmentation of Nedbank’s top executive, 43% of whom are now black.

“There were candidates that we interviewed for the job who were stronger than Raisibe in terms of ­experience, but they were all white. We insisted on appointing her because transformation is imperative for us and we were not prepared to budge on it,” Khoza said.

Attempts to get hold of Morathi on Friday were unsuccessful.

City Press

Hat tip: Kobus

9 Opinion(s):

Viking said...

"Association of Black Securities and Investment Professionals"

bluddy hell....

Anonymous said...

Yep Viking, and notice how no one will even notice the "black" part of the association? Are we still okay with racial demarcation in the so-called post-racial SA?

Viking said...


wait... you mean I can't join???

Anonymous said...

Not unless you paint yourself black, remove 4/5ths of your brain and change your name to Ezekiel ;)

FishEagle said...

Lol. Having a good laugh...

Anonymous said...

That is what happens when you try to appease the ANC - they view it as weakness and kick you even further.

Serves big business right in SA!

Anonymous said...

hahah Dobes 5:26PM - good one; so sad but so true!

Pensioner said...

Nedbank is the bank that is re-running that stupid add on tv where the black dude asks a black traffic officer and a white jogger where he can get the financial backing for a large tender he has gotten. The add alone tells the crazy storey of AA and BEE; no money, no brains, cooool bru, you got the contract, go buy a beemer. Assholes make me sick, don't bank with them and never will.

Mad Kiwi said...

"“There were candidates that we interviewed for the job who were stronger than Raisibe in terms of ­experience, but they were all white. We insisted on appointing her because transformation is imperative for us and we were not prepared to budge on it,” Khoza said."

Which is totally racist and breaking the rules of AA. AA stipulates black appointment only if the experience and qualifications are on par.

Someone should take this to the CCMA as a blatant racist breach of AA stipulations.