Tag: black empowerment

Bob says AU is failing because of whites

Zimbabwe’s President Robert Mugabe says South Africa is failing to lead the economic development of countries in the African Union (AU) because its economy is in the hands of the white minority.

Speaking at a function attended by African diplomats stationed in Beijing, China, on Monday where Sierra ­Leone ambassador Victor Bockarie Foh and Liberia’s McKinley Thomas heaped praise on him, Mugabe said South Africa was in a compromised situation.

“We would love to see South Africa taking the lead. But the country’s economy is still controlled by the white community, making it difficult [for blacks] to take charge.”

His address took place on his recent two-week tour of China to seek funds for Zimbabwe’s ailing economy.

In response, ANC secretary-general Gwede Mantashe told Voice of America’s Studio 7 on Wednesday that South Africa would not “drive whites into the sea” in a manner that would look like Zimbabwe’s chaotic black empowerment programme.

He said South Africa would not draw inspiration from Zimbabwe in redistributing national resources.

Last year, in a televised interview with Dali Tambo, Mugabe took a dig at Nelson Mandela for being too “friendly” with whites. “Mandela has gone a bit too far in doing good to the non-black communities, really in some cases at the expense of blacks,” said Mugabe.

Since taking over as chair of the Southern African ­Development Community (SADC) earlier this month, ­Mugabe has pushed for South Africa to help other African countries, especially those in the region, instead of using them as a “dumping ground” for surplus products.

He told journalists at the end of the SADC summit: “We also appeal to South Africa, which is highly industrialised, to lead us in this, and to work with us and cooperate with us and not just to regard the rest of our countries as open markets for products from South Africa.”

Before this address, Mugabe had been let down by South Africa which, with Namibia, had refused to sign the Protocol on Trade in Services. It provides for a mandate to progressively negotiate the removal of barriers to the free movement of services.

Source: City Press

BEE charities: Segregation is back

Charities could face ruin over a government proposal that firms could lose black economic empowerment (BEE) points if they donate to charities that do not have 100 percent black beneficiaries.

Some charities believe the proposal means that any firm that donates to a charity that helps a white, coloured or Indian person may not be able to claim points for its BEE scorecard.

It could also mean that if just one white child or person is among a group of black people the charity is helping, the firm that donates to it could lose it points.

A BEE scorecard is used by the government to measure a company’s BEE compliance. Those that comply do business more easily with other companies also wanting to increase their scorecard and are favoured by the government in all aspects relating to business.

Despite repeated attempts since Monday for a response and clarity from the Department of Trade and Industry, all it would say was: “All stakeholders who have concerns and objections are requested to make use of the 60-day period to make their submission… We will not be in a position to comment/respond to the questions as we do not want to pre-empt the process.”

The amended changes to the BEE Codes of Good Practice are on the department’s website and up for public comment until December 2.

Legislation that is in place allows for charities to assist all races, but lower points are scored when companies assist organisations where less than 75 percent of the recipients are black.

Bridget Brun, a Durban BEE agency head, said she hoped the proposed amendment was an error.

“I don’t think they [the department] have realised what they have done. Think of organisations such as Girls’ and Boys’ Town or Childline,” she said.

“This amendment will have a huge effect. It means if the charity benefits any Indian, white, coloured or even a Mozambican or Zimbabwean child, companies will not be able to claim points on their BEE scorecard. We are now going to have segregated facilities.

“Charities will not help white children if the companies which support them withdraw support because they can’t claim the points.”

Erika Petersen-Holmes, a partner in the commercial and corporate law department at Shepstone and Wylie in Durban, agreed, saying: “Almost all charities have at least one white beneficiary.

“This could result in those charities receiving no corporate donor funding, or those charities rejecting white beneficiaries.”

Karen Hatton-Jones, of retail giant Spar, which gives many charities, orphanages and NGOs large cash and food donations every year, said she was “distressed and disgusted” by the proposed change.

“It’s not going to change what we do. Since when do we put a colour to those in need?” she asked.

Childline head Joan van Niekerk said BEE laws were going from difficult to ridiculous.

“We don’t know the race of the child who phones us. It’s inappropriate to ask, ‘Are you black, and how black are you?’ This is a different kind of apartheid. It’s extremely distressing,” she said.

Van Niekerk said charities were pragmatic about funding.

“There is no such thing as a free lunch. We have to be practical and realistic about funding now. This corporate social responsibility money is something companies are obligated to give and we know the rules up front. If this goes through it will now be far more difficult to deal with.”

Jackie Branfield, of child crisis organisation BobbiBear, said it was the first that she had heard of it.

“Yes, 99 percent of the children we help are black, but we are certainly not going to turn away that 1 percent who could be a white or Indian child. Where’s our democracy, where is our new South Africa?”

Durban Chamber of Commerce CEO Andrew Layman said worthwhile social upliftment projects would suffer. “The implications could be severe,” he said. IOL

Zim’s ‘black empowerment minister’ to take platinum mine

by Gillian Gotora

AP – Zimbabwe’s black empowerment minister said Wednesday he will proceed with a takeover of the country’s biggest platinum mine if the South African owners don’t comply with orders to hand over more stakes in the company to blacks.

Minister Saviour Kasukuwere said there is “no compromise” over the eventual handover of 51 percent of the company’s stock as is required by “indigenization” laws.

Last year, Zimplats became the first foreign-owned company to cede 10 percent of its holdings to a local community trust. Zimbabwe has ordered the company to hand over another 30 percent by mid-March. South African-based Implats owns 87 percent of existing shares in Zimplats.

Zimbabwe and South Africa are the world’s largest suppliers of platinum, a corrosion-resistant metal with a wide range of industrial uses that is priced higher than gold.

Kasukuwere told the Associated Press Wednesday that a proposed visit by Implats’ chief executive to discuss the matter would not change the government’s decision.

He said he has no plans to meet with Implats chief David Brown.

“I don’t need to meet them over anything. Why are they coming to see me? I’m not a zoo,” Kasukuwere told The AP. “I have nothing to discuss. They must respect the laws of this country,”

Parliament last year passed a law that calls for all foreign-controlled businesses to take on black partners as majority stockholders.

The former opposition party of Prime Minister Morgan Tsvangirai has voiced concerns that the prospect of hasty takeovers scares off much-needed investment. The party has called for accountability and careful implementation of the “indigenization” program that risks collapsing some viable businesses and mines.

President Robert Mugabe’s party – which is in a shaky three-year coalition with Tsvangirai – says China can provide new technical expertise in mining and manufacturing.

Foreign cash inflows have dwindled in recent months amid uncertainty over the security of possible investments.

This month, banks, including major international banks, have reported growing shortages of cash for day-to-day transactions in Zimbabwe. Executives say the liquidity crisis has been fueled by businesses that cannot repay bank loans because not enough money is coming in to service the loans.

Industrial production has remained stagnant after years of economic meltdown with many factories desperate for cash to replace aging equipment and machinery.

Last year, Kasukuwere announced that he had canceled the Zimplats mining license but backed down after Zimbabwe’s mining minister ruled the cancellation void.

Kasukuwere, 42, seen as a younger militant in the top ranks of Mugabe’s party – which is dominated by veteran politicians aged in their 70s and led by Mugabe, 88- is tasked with securing Zimbabwe’s resources for black control.

Critics of new business takeovers point to a possible repetition of land seizures since 2000 that have seen many of the best former white-owned farms allocated to politicians and Mugabe party loyalists who have left them to lie idle.