Data provided by McGregor BFA
All data is delayed
Loading...
See More

Secret influence in BEE deals - report

Dec 19 2012 14:38 Sapa


Related Articles

Expert: Mining needs real BEE

Phosa: BEE not working

Donations could cost BEE points

BEE consultant lashes out at JSE survey

Mining charter falls short of BEE act

Concerns over revision of BEE codes

 
Johannesburg -  Certain people are non-negotiable when it comes to choosing beneficiaries in black economic empowerment (BEE) deals, such as that of Gold Fields in 2010.

"Core people are put forward, by government and by Luthuli House (ANC headquarters) and you are told that whoever else you want to include in the train is fine," a former business executive, who was not named, was quoted as saying in Wednesday's Business Day.

"But certain people are non-negotiable. That is why all these deals come back to the politically-connected."

While no one in business had yet been bold or ethical enough to disclose the mechanisms of such deals, participants in several deals said individuals were put forward by those with senior positions in the government and the ANC.

The report carried Gold Fields [JSE:GFI] CEO Nick Holland's explanation of how it concluded its empowerment deal.

He told Business Day that after the MK Veterans' Association had given him a list of recommended beneficiaries, he considered ANC chairperson Baleka Mbete "non-negotiable" because of the role she played in the welfare of veterans.

Others the transformation committee of Gold Fields regarded as "non-negotiable" were the wife of slain SA Communist Party general secretary Chris Hani, Limpho Hani, and fellow widow of a former MK member, Thandi Shongwe.

In the end a R2.1bn deal was concluded with three components - an employee share ownership scheme, the Invictus Consortium, and the South Deep Community Trust. The consortium was made up of several companies.

The 73 people in the consortium could expect an income of no more than R80 000 a year.


Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

gold fields  |  bee
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
30 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...