BEE News.co.za

Bid to list gambling board boss as supplier

A SENIOR executive of a licensed gambling company wanted to add a computer and stationery supply company owned by the Eastern Cape's gambling board boss to a list of approved suppliers to the gambling company.

]]> The shock new revelation comes in a widening scandal over the relationship between the Eastern Cape Gambling & Betting Board's (ECGBB) chief executive and Vukani, the country's leading distributor of limited payout gaming machines.

SPEECH: Zuma in London

Keynote address by His Excellency Jacob Zuma, President of the Republic of South Africa, to British Parliamentarians; Palace of Westminster, London
4 March 2010
Lord Speaker,
Honourable members,
Esteemed guests;
Ladies and gentlemen;

]]> I feel greatly privileged to address members of Parliament during our State visit to the United Kingdom.

This special honour speaks to the extent and the warmth of the relations between our two peoples.

ABVA - BEE Codes Clarification

Interpreting the Codes: Best Practice in BEE Verification
Issued by ABVA: FOR IMMEDIATE RELEASE

ABVA, the Association of BEE Verification Agencies, would like to clarify some issues regarding the on-going interpretation of the BEE codes. As stated by the dti and agreed by ABVA, ABVA does not set policy and never has or ever intends to pronounce on policy.

]]> ABVA however, does have a role to ensure that a consistent application of the codes is practiced in the market place. This is why draft practice notes, pertaining to the legal interpretation of the Codes and related legislation, were issued for comment to ABVA members. These draft practice notes do not aim to interpret policy, but rather are an attempt at bringing a level of consistency to the application and legal interpretation of BEE.

The draft practice notes currently represent the compilation of external and internal legal opinion on certain key interpretational matters however policy issues are not addressed in the documents. The circulation of these draft practice notes follows a mandate given to the ABVA board from ABVA members at the last AGM of ABVA in May 2009.

ABVA's technical committee has received several comments (even from non-members) following the circulation of the draft practice notes. All of these comments are currently being evaluated before circulation of any final practice notes.

In order to create a diverse platform in which to discuss these application issues, ABVA recently opened its membership up to BEE consultants and corporates. The very purpose of this move by ABVA was to obtain a more representative input into these legal / interpretational matters.

ABVA strongly believes in consistency of application so as to avoid varying interpretations that allow for the giving away of points on the scorecard and diminishing the intentions of BEE.

Government also has been working towards ensuring the credibility of the industry through the accreditation process administered by SANAS. In line with government policy, ABVA has always referred to the legal interpretation of all the legislation which governs BEE implementation, the Codes of Good Practice, the SANAS R47 and the Verification Methodology. The legal position embodied in these documents show that only agencies that have made application to SANAS before the 1st February 2010 could be regarded as a "verification agency" for purposes of the minister's notices issued during the course of 2009.

With the recent landmark of February 1^st behind us, the verification industry is now in a much stronger position to ensure consistency and credibility in BEE verification. ABVA will continue to play its role in this process alongside the dti, SANAS, the BEE Advisory Council and other stakeholders.

Thanks to the assistance of organisations such as ABVA, there are now accredited agencies and a host of agencies who will soon be accredited that can take BEE verification to the next level.

ABVA is proud of its achievements working with government and business so as to ensure credible and consistent application of the BEE codes.

................................................................................................................................./ENDS

For more information contact Njabulo Mbatha at Red Flag Design & Marketing: (011) 447 8283, njabulo@redflag.co.za

Opening power grid good for BEE

JOHANNESBURG - Opening the national power grid could take broad-based black economic empowerment to a higher level, Nafcoc said on Tuesday.

]]> The move was "highly commendable", said National African Federated Chamber of Commerce and Industry spokesman Tom Boya in a statement.

Innovative Franchise Concepts launches Fast Forward Café - formalising the informal sector

Innovative Franchise Concepts (IFC), a company that bridges the gap between corporate enterprise development funds and the beneficiaries they are intended to reach, has been awarded a tender by the Metropolitan Trading Company that will see it change the face of street vending in Johannesburg.

]]> IFC's Fast Forward Cafe is an innovative franchise that helps to transform existing food street vendor stalls into formal, branded outlets.

Govt's IPAP2: COSATU's initial response

The Congress of South African Trade Unions welcomes the release of the New Industrial Policy Action (IPAP2) by the Trade and Industry Department (see here). COSATU is studying the action plan and will make its submission before the Trade and Industry Portfolio Committee on 3 March 2010. We however wish to make the following preliminary comments on the action plan.

]]> We note with satisfaction that the call COSATU has been making for many years that to address the high rate of unemployment, poverty and inequality, the country needs a clear industrial strategy that targets labour intensive sectors of the economy, is ultimately taking root/becoming a reality.

SAB deal open for retailers

Johannesburg - Global brewing giant SABMiller plc's local unit, The South African Breweries, announced on Monday that the retailer component of its broad-based empowerment transaction - SAB Zenzele - is now open for participation by retailers. The offer is scheduled to close on 7 April and will be implemented in May 2010.

]]> The broader BBBEE transaction, which involves the establishment of the SAB Zenzele Employee Trust and the SAB Foundation, was first announced in July 2009. It will place 8.45% of the company's shares under black ownership and is estimated to be worth R7.3bn.

Procurement fraud in government departments emphasises need for strong compliance culture

In his Budget Speech, Finance Minister Pravin Gordhan acknowledged the reality of procurement fraud in government departments and announced that a team has been set up to look at procurement as a whole with a view to reducing the opportunities for fraud.

]]> This came on the back of President Zuma's recent comments where he referred to a 'tender compliance unit' being established, as well as supply chain fraud audits and the establishment of an inter-ministerial committee to address the findings of the Public Service Commission relating to the Evaluation of Supply Chain Management Practices within the R200 000 threshold.

Julie Methven, CEO of the Compliance Institute of South Africa, said today that the Institute welcomes these developments, adding that given the current scarcity of compliance knowledge and skills in the country, and the lack of a compliance culture, fraud and corruption are not surprising.

“Government has at last sent a strong signal that corruption in state organs is in the spotlight and compliance must be strengthened,” Methven says.

She said that a culture of compliance needs to be inculcated in government departments and civil servants need to be trained in identifying compliance risk and establishing a robust compliance function.

“Organisations with mature compliance cultures consider the compliance function a vital element of business operations and no critical decisions, for example the awarding of a large tender, are taken in such organisations without the involvement of the compliance function.”

As witnessed in the recent financial crisis, non-compliance can have a devastating effect on communities and was, in fact, the catalyst for the current recession. Government corruption is just as potentially damaging, as public money lost through fraud is no longer available to deal with SA’s very real social and economic problems. In his speech to parliament Minister Gordan labelled corruption “an ever-present threat to our ambitions.”

Methven says that compliance tends to be seen as an exercise in ticking boxes instead of a critical component of an organisation’s entire risk management framework and this has serious implications for sustainability.

“Internationally compliance is no longer focused on attaining minimum levels; it’s about aspiring to best practice.”

In this regard the Institute has developed a Generally Accepted Compliance Practice framework (GACP). Launched last year, it provides a set of standards and norms that act as a benchmark of compliance best practice.

ENDS

Issued by: Claire Densham Communications On behalf of: The Compliance Institute of South Africa

Contact the Institute: Julie Methven, CEO, 011-642-7974; 082-785-0802

Contact Claire Densham: 021-914-9353; 082-906-3201

$1.2-billion refinery for the coast

One of four selected coastal areas in South Africa stands to be home to the world's first integrated pure metals refinery plant producing titanium, zirconium, magnesium and silicon, upon completion of the feasibility study.

]]> Rare Metals Industry is a consortium made up of the multi-billion-rand National Empowerment Fund, the IDC, Magnesium and Metals (a US and Russian consortium) and TJTI, another locally-based company.

IMPERIAL Logistics Continues to Advance its B-BBEE Rating

Johannesburg, South Africa, 17 February 2010, IMPERIAL Logistics is delighted to announce its improved level four (4) Broad-Based Black Economic Empowerment (B-BBEE) rating received from the NERA Verification Agency in December 2009. IMPERIAL Logistics also qualifies as a Value-adding Supplier offering its customers an enhanced Procurement Recognition Level of 125%.

]]> "IMPERIAL Logistics continues to be committed to its B-BBEE journey. Significant transformation has taken place since we started the process in 2007," says Marius Swanepoel, CEO IMPERIAL Logistics. "We focus strongly on Employment Equity and Preferential Procurement, while we are passionate to continuously improve Skills Development within the organisation."

In 2007 IMPERIAL Logistics gained a B-BBEE Recognition status of level five (5) with a 100% Procurement Recognition level. This was improved upon in 2008 with an enhanced status four (4) rating and a 125% Procurement Recognition. During 2009 serious efforts were directed at improving the Human Capital and Preferential Procurement elements, as the company strongly believes in developing Entrepreneurial Leaders.

Swanepoel continues: "Our meaningful contribution to the economic growth and transformation of this country extends beyond compliance. Continuous improvement on our BEE score is equivalent to the significant transformation taking place in IMPERIAL Logistics."

"IMPERIAL Logistics has responded proactively to B-BBEE by implementing significant transformation initiatives that have resulted in a positive effect on our organisational processes and performance," says Sibongile Zikalala, Transformation Director, IMPERIAL Logistics. "Our objective is to be one of the industry leaders in the transformation arena."

IMPERIAL Logistics' 2009 B-BBEE Verification Certificate can be downloaded here: www.imperiallogistics.co.za/B-BBEE.pdf.

About Imperial Logistics

IMPERIAL Logistics is the leading logistics and supply chain management company in southern Africa with an international footprint in Europe. IMPERIAL Logistics Southern Africa provides customised value-added logistics services and supply chain solutions to blue chip customers in almost every industry. IMPERIAL Logistics is a division of the IMPERIAL Group and the Southern Africa division is home to more than 70 operating companies, categorised into four key divisions, namely Transport and Warehousing, Consumer Products, Specialised Freight and Integration Services. IMPERIAL Logistics International focuses on European markets and comprises four operating units, namely Panopa Logistik, neska, IMPERIAL Reederei and Brouwer Shipping. For further information, please visit www.imperiallogistics.co.za

State of the Nation address is outdated

Sefu Sekgala says the president failed to inspire confidence in the future

President Jacob Zuma is the most modern President of the republic of South Africa . However, his address has no trace of modernity.

]]> His address is extremely shallow and does not inspire confidence into the future. It still puts far more emphasis on the past and the temporary urgent matters of the present and says nothing about the future.

The President's speech has emphasized the lack of respect the current government has to Small, Medium and Micro Enterprises (SMME). There is no mention of SMME's in the sate of the Nation address by Jacob Zuma.

Sipho Ngcobo dissects the problems with BEE.

JOHANNESBURG - I would really hate to say I told you so.

The brutally frank pronouncement by Deputy President Kgalema Motlanthe about a week ago that black economic empowerment has failed is an amazing vindication of what I have been trying to argue.

]]> Often times I felt like a raving lunatic hell-bent on rubbishing a noble cause.

But that's what most elements of broad-based black economic empowerment (BEBEE) are, - rubbish.

Maybe let's begin where we are supposed to begin: What was the original, genuine objective behind the BEE policy?

Zuma's full speech

State of the Nation Address by His Excellency JG Zuma, President of the Republic of South Africa; Joint Sitting of Parliament, Cape Town
11 February 2010

]]> Honourable Speaker;
Chairperson of the National Council of Provinces;
Deputy Speaker of the National Assembly and Deputy Chairperson of the NCOP;
Deputy President of the Republic, Honourable Kgalema Motlanthe;

Massmart achieves level four BBBEE rating

The Massmart Group of companies has achieved a Level Four Broad Based Black Economic Empowerment (BBBEE) contributor status, two years earlier than planned. Massmart achieved a score of 66.14% from ratings agency Empowerdex, following a comprehensive audit of the Group's BBBEE performance.

]]> This is substantially higher than last year's score of 55.67% when the group obtained Level Five status. There has been steady growth in Massmart's empowerment performance since its June 2007 score of 49.77%.

SOUTH AFRICA: Inequality not so black and white

INEQUALITY NOT SO BLACK AND WHITE , 8 February 2010 (IRIN) - The growing gulf between the haves and have-nots in the black population has given South Africa the dubious distinction of becoming one of the world's most unequal societies, according to a recent report by the Organisation for Economic Co-operation and Development (OECD), an inter-government body.

]]> "From a policy point of view it is important to flag the fact that intra-African [black] inequality and poverty trends increasingly dominate aggregate inequality and poverty in South Africa," noted the report, Trends in South African Income Distribution and Poverty since the Fall of Apartheid.