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Johannesburg - The black economic empowerment (BEE) study of the top 100 companies listed on the Johannesburg Stock Exchange indicating that direct shareholding by BEE companies was as much as 8.0% is misleading, the Black Management Forum (BMF) said on Tuesday.
"The suggested figure is by definition inflated because the study has not drilled down to actual black ownership," BMF president Jimmy Manyi said in a statement.
"BEE shareholding is not always synonymous with black shareholding; the former could have a white component and thus be a distortion of what is effectively in black hands."
Manyi said that if, for example, a BEE company that was 40% black-owned acquired a 40% stake in a JSE-listed company, the effective shareholding of black investors translated to only 16%.
The BMF was disappointed with the JSE, which commissioned the study, for what it termed "its mathematical manipulation to artificially increase black ownership in the top 100 listed companies".
The BMF's optimistic position was that black people owned less than 5.0% of these JSE companies.
"The study has unfortunately confirmed that transformation is in reverse gear," Manyi said.
The JSE said it would respond to Manyi's comments later on Tuesday.
Earlier this month, the JSE reported that, according to its survey, 8.0% of its 100 top companies by value were directly owned by blacks.
The figure however translated to 18% when the department of trade and industry's regulatory framework was used.
"The suggested figure is by definition inflated because the study has not drilled down to actual black ownership," BMF president Jimmy Manyi said in a statement.
"BEE shareholding is not always synonymous with black shareholding; the former could have a white component and thus be a distortion of what is effectively in black hands."
Manyi said that if, for example, a BEE company that was 40% black-owned acquired a 40% stake in a JSE-listed company, the effective shareholding of black investors translated to only 16%.
The BMF was disappointed with the JSE, which commissioned the study, for what it termed "its mathematical manipulation to artificially increase black ownership in the top 100 listed companies".
The BMF's optimistic position was that black people owned less than 5.0% of these JSE companies.
"The study has unfortunately confirmed that transformation is in reverse gear," Manyi said.
The JSE said it would respond to Manyi's comments later on Tuesday.
Earlier this month, the JSE reported that, according to its survey, 8.0% of its 100 top companies by value were directly owned by blacks.
The figure however translated to 18% when the department of trade and industry's regulatory framework was used.
