Busa and BMF split

EIGHT years after the difficult establishment of Business Unity South Africa (Busa), it appears that the veil is about to lift.

From the outside, Busa would seem to be heading for an inevitable split.

The dispute about the nomination of a successor to Jerry Vilakazi, the umbrella organisation's CEO for five years, was the final straw to break the camel's back.

It ended years of frustration at the hold some black organisations had over Busa, and to which it had kowtowed since 2003 for the sake of uniting the organised business sector into a non-racial body.

Will a split really mean the end? Will it mean a return to the racial divisions of business organisations that prevailed before Busa's establishment in 2003?

Not necessarily, say sources within Busa. In the light of recent behind-the-scene events, these utterances would appear to have been more than efforts to control damage done to Busa's image by the impending rift.

The formal exit by the Black Management Forum (BMF) two weeks ago was generally expected. Vilakazi's 2006 appointment as CEO was thrust upon Busa by the black organisations, in particular the BMF, as was that of his predecessor, Bheki Sibiya, the first CEO in 2003. Both came from the BMF.

Business organisations have no quarrel with the manner in which Vilakazi or Sibiya did their jobs. Viilakazi was particularly proficient, especially in reconciling organisations with conflicting viewpoints within Busa and in preserving unity.

"If one looks back, one realises it was a superhuman task and one wonders how Vilakazi managed it," an important player within Busa said last week.

The BMF's members are individuals and not organisations or companies like the members of other business organisations. Most of them were previously managers in private sector organisations, which means that the BMF was a particularly important voice for affirmative action in the private sector.

Many BMF members from public sector

But over the past 15 years the BMF has admitted many members from the public sector, especially the public service. Today some 60% of its members probably come from the public service. It's fairly clear, therefore, that the BMF has long been unable to claim to be a business organisation.

But in recent years, especially in the run-up to Jacob Zuma's leadership struggle, the BMF has strung together black organisations in the Black Business Caucus (BBC).

The BMF is naturally the strongest organisation in the caucus, thanks in particular to the ties between its leaders, government and Zuma.

"The true business organisations in Busa are determined not to let the BMF again force a chief executive upon them," said a high-ranking source.

To ensure that no criticism can be directed at the process, Busa has appointed the best available executive recruiting agency to handle the selection process for Vilakazi's successor.

After a tender process, Heidrick & Struggles (H&S), an international consultancy group specialising in head-hunting (the global recruitment of executives for top companies), was appointed to seek candidates for the position as far and wide as possible.

H&S drew up a comprehensive description of the requirements and qualifications for the position. The agency compiled a list of 50 suitable and available candidates who, through strictly scientific selection, were subsequently cut down to 20, and then to 11.

The 11 names were presented to the selection committee, which consists of representatives of the Busa executive board. Following interviews, the selection committee and the head-hunters reduced the list of 11 to five.

During the next two weeks one name will be selected and, after submission to Busa's selection committee for approval, presented to the executive board.

Following the BMF exodus, Sandile Zungu, the BMF representative in the selection committee, apparently announced he would continue to participate in the selection process. Should he do so, this will probably lend credibility to the process.

Zungu was the BMF candidate for the Busa presidency up against Futhi Mathoba.

Last week the black organisations within Busa conferred with Advocate Brenda Madumise, one of Busa's vice-presidents, on their future in the organisation.

Problems were discussed and a decision taken to have a task team review Busa's future structure, the powers of black organisations within Busa, and participation by smaller organisations.

The task team consists of representatives of the black organisations that took part in the meeting with Madumise and some of Busa's elected leaders. Its findings will be presented to a meeting of members of the umbrella body.

The organisations are, however, small and weak. Had Busa ensured stronger growth for these groupings, it would have been in a much better position.

Today they are not keen to publicly align themselves in opposition to the BMF. There seems to be some hope that they will remain in Busa, but they are reluctant to say so out loud because it would understandably not be in their interests.

In the long run, a split could result in pure business organisations only remaining behind. There is no doubt that the deserters would set up their own umbrella body and, at least initially, stand in opposition to Busa.

But a scaled-down, purer Busa could play a far more active role as the voice of the organised business sector than it has done to date.

The most important element will, however, be the new chief executive.

He or she will make or break Busa.