BEE investors to quit Absa

2012-08-05 10:47

Johannesburg - Black economic empowerment investors in Absa Group [JSE:ASA], including Human Settlements Minister Tokyo Sexwale's Mvelaphanda Group [JSE:MCG], are set to sell their stake in the banking group, City Press reported on Sunday.

The shares are valued at a collective R2.2bn, after tax.

A special resolution to cash in Absa shares was discussed at the Batho Bonke annual general meeting earlier in the week.

Batho Bonke spokesperson Chris Vick told City Press no time frames for the disposal had been set, but disposal options would be considered.

Mvelaphanda holds a 2.28% stake in Absa through the Batho Bonke empowerment scheme.

Batho Bonke holds 3.9% of Absa.

Sexwale resigned from directorships when he was appointed to the Cabinet in 2009, but still holds shares in Mvelaphanda through a blind trust.

Sexwale is expected to challenge President Jacob Zuma for the ANC presidency in December.

Political analyst Steven Friedman told the newspaper that money was "incredibly important" in a presidential campaign.

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  • gerry.pelser - 2012-08-05 11:06

    Okay – how does this work? BEE shareholders sell – 1) Can they only sell to other BBE-qualified people/companies? 2) Can they sell to white guys / companies? If 1 – well, that’s a nice free market, ain’t it? Supply and demand will surely make sure that share price does some interesting things! If 2 – is ABSA then in danger of losing BEE points, or are their BEE points “carried over” if the shares are sold to white guys? Either way, it is now a prime example of how a weird, twisted and unworkable false economy BEE is. Time to move on. BEE has not worked, is not working, and will never work.

      gieljam.gomtor - 2012-08-05 12:22

      Agree , Like most of this BEE nonsense even the Custodians are realizing that expertise , hard work and know how not colour is the answer...

      claudia.meads - 2012-08-05 13:16

      gerry.., As so much of BEE it is fundamentally a mystery. The ANC makes laws that can be interpreted as you wish - so wish for what you like and with the correct connections all your dreams can be realized. BEE as a concept.., Is the most bizarre attempt in all of human evolution to address up to 80 000 years of evolution in a few decades. It is doomed to failure even before it was conceived - in short: it is as daft as those it is trying zap through time an impossible time warp.

      nick.athinodorou - 2012-08-05 13:19

      I agree totally!! My question though is how does this affect the targets set by govt for black ownership in the economy? If they sell their stakes does this then reduce the level of black ownership? If so does this not make such targets movable goals that will never be achieved? The whole concept now should be scrapped in my opinion.

      ernest.gallagher - 2012-08-05 15:26

      @Gerry - Absa should still be able to score some of the points if the equity was held for 4years (some restrictions do however apply) ABSA has 9% black shareholding, the loss of 2% wont make a massive difference to their BEE score (They only scored 6 / 20 on ownership) @Claudia - BEE is alot of things but definitely not a mystery. Read the Codes of Good practice, its only about 90pages.

  • johanttblom - 2012-08-05 11:06

    Oh thank you steven Friedman for that brilliant pearl of wisdom .Your genius is remarkable to figure that last part out.............. Oops I forgot this is news24 so for those who are a bit dim *sarcasm alert*

  • kobus.hattingh.5 - 2012-08-05 11:08

    So Sexwale believes he can buy the Presidency?

      da.durbanite - 2012-08-05 11:24

      Don't worry Kobus...he won't people don't like him anyway...he's so ambitious shame

      nina.ignjatov - 2012-08-05 21:43

      Dear God, please do not let Tokyo become president '!!!!!!!

      jo.barton.92 - 2012-08-06 09:36

      @Nina, why not? Is he any worse than what is running the country right now?At least he is married to a White woman, so he can't be hating the white people.

      nina.ignjatov - 2012-08-06 09:45

      @Joe, he supports Malema!!! he puppets Malema, he just thinks of his own pocket!!! he wants to do the land grab, he wants to nationalize the mines, just so he can profit and does not think of the nation!!! BIG mistake if he is elect !!!!

      lindela.e.mtshali - 2012-09-06 15:13

      Hey! who knows if he keeps trying, he may eventually get it!

  • justin.pretorius - 2012-08-05 11:11

    Needing money?

      lacrimose.wolf - 2012-08-05 19:42

      Yep to fund his campaign war chest for the Mangaung nominations and perhaps beyond. Curiously, the eligible candidates will only be announced by ANC in October and anyone trying to put themselves forward before then, is corrupting the ANC. [insert maniacal laughter here]

      kevin.kramer111 - 2012-08-06 09:13

      Watch the ATM heists increase over the next few months...all the cadres building war-chests to fund their campaigns...

  • faizieishlah.shabalala - 2012-08-05 11:16

    The shares are under water to these dudes will take a bath on their mezzanine finance. Toyko for President [of Bisho]

  • trevor.pietersen.3 - 2012-08-05 11:19

    Just thinking...where Zuum Zoom getting his campain money from????

      grootrot.vanzyl - 2012-08-05 19:00

      From the same budget that was allocated to teach you how to spell "campaign", not to mention the grammar?

      ike.jakson - 2012-09-06 03:47

      Where do you think; there is only one route; the same all of them get it. Surely you know that and I gather from your comment that you do.

  • juan.prinsloo.750 - 2012-08-05 12:19

    Did they buy these shares originally, or were they given the shares because the were black and had the right political connections?

      sanda.mnyazi - 2012-08-06 12:08

      Stupid question perhaps? Who gives away free shares? SMH

  • tobydt - 2012-08-05 12:30

    Why not? Zuma bought his presidency.

      ike.jakson - 2012-09-06 03:49

      I get the impression that you know how the system works.

  • petrofect - 2012-08-05 12:36

    Sexwale is expected to challenge President Jacob Zuma for the ANC presidency in December and money is \incredibly important\ in a presidential campaign, who is rich enough to win?

  • tony.vanniekerk.35 - 2012-08-05 13:06

    Still hold the opinion that money should not play a big role in a presidential campaign - character should. But hey, who am I anyway, just a taxpayer.

  • jonathan.harvey.12 - 2012-08-05 13:13

    I wish the media would get it right. Having HDSA (Historically Disadvantaged South Africans) as shareholders does not make you BEE compliant. BEE is a process that is supposed to uplift the poor and not force companies to have a HDSA partners in the company. BEE is a process where companies get scored on seven different levels of which only one is ownership and ownership is only enforced in the mining charter.

      EricksonTL - 2012-08-06 01:40

      Ownership, management, employment, skills development, preferential procurement, enterprise development, socio economic development, weighted in that order. Essentially, the more black ownership, management, and employment figures you can show that are the right colour, the better your company is, in the eyes of government. Of course, that means selling shares to black moguls on the cheap, employing based on race rather than merit, and buying from the blackest rather than the best service providers and suppliers. It may have noble goals, but BBBEE is a failure in that it circumvents the notions of capitalism in a capitalist environment. Which is like trying to force a square peg into a round hole.

      sanda.mnyazi - 2012-08-06 12:12

      thoughtsandstuff your comment worries me Of course, that means selling shares to black moguls on the cheap, employing based on race rather than merit, and buying from the blackest rather than the best service providers and suppliers. You still think there are no blacks who deserve employment based on merit? you still think there are no black service providers who can provide the best? it is people like you we dont need in this country

      ryan.a.smith.3958 - 2012-08-07 04:10

      Sanda, employing based on race and merit is mutually exclusive. for example, I could employ the best black candidate, but he could still be less qualified or deserving than a white employee. which means its clearly not on merit.

      EricksonTL - 2012-08-07 07:19

      Sandra, your lack of insight concerns me. If you want a level playing field, then it MUST BE LEVEL! ZERO racial bias. Not 'racial bias as long as the bias falls the right way.' Seriously, work on those comprehension skills. It's what people who DO hire on merit look for in employees. Unless you want to BE the stereotype?

  • aiazmir - 2012-08-05 18:00

    If you follow the "dots" then you will see that the disease comes from Absa's majority shareholder Barclays Bank who were found guilty of manipulating LIBOR (London Interbank Lending rate). It goes deeper than that. Barclays were recipients of some US Dollar 600 million from the US Federal Reserve Bank in the recent (2008) bank bailouts. Now the yanks want their money back, so Barclays and their web of intrigue are basically stuffed.

  • KCorsar - 2012-08-05 20:22

    This really showcases what a load of BS BEE is. ONE, Mvelaphanda holds 2.28% in ABSA through the Batho Bonke scheme, which holds 3.9%. So if this article is written CORRECTLY, the Mvelaphanda holds almost 60% of the BEE focused investment vehicle in ABSA. This just makes a complete mockery of the principles BEE was supposed to address. @ gerry pelser, agree 100% its twisted, biased and DOESN'T do what it was supposed to.

  • bongani.nsele.58 - 2012-08-05 21:23

    poor absa sold for a quid to london banksters....making less than 4% assets but contrbuting 80% revenue to london tricksters no wonder absa fees are the highest in mzansi

  • pisciotta - 2012-08-05 23:50

    Does SA have Free Enterprise? If so then they can sell to whomever. If not, then SA is a "Democratic" Farce and should go back to the bush until it learns how to act if it wants to be respected by other democratic countries.

  • Billy - 2012-08-05 23:52


  • Marc - 2012-08-06 09:43

    Well, good luck to Sexwhale in December. But it does in the end come down to this: "I want the maaaaaaaaan." If you have any doubt, there are countless instances of this countrywide, in particular in case of preferential BEE buy-ins.

  • maseratifittipaldi - 2012-08-06 10:21

    The balace sheet of these BEE billionaires demonstrates clearly what they think of Black Economic Empowerment, "Economic Freedom", The Gini coefficient, poverty, hunger, misery and all that... In stead of spreading the wealth, they hang on to it and then they want to use the money to persuade the downtrodden masses to vote for them!??? How Arrogant and how Stupid - can you get?

  • riyaaz.ismail - 2012-08-06 13:23

    So does Absa now launch another BEE initiative?

  • xoliswa.moraka - 2012-08-06 18:13

    True empowerment can only be achieved if individuals take ownership and responsibility of their developmental needs.We need to have a mindset shift and start assuming proactive, productive and responsible ways in which we can ALL participate in the empowerment process. This requires a collective and voluntary approach and not one that is not sincere but rather forced on people. In my experience forcing people to do something does not empower rather creates resentment. My only challenge with BEE is that the role of government and private sector is a bit clearer, whilst the role of the beneficiaries is not defined and this creates a challenging situation where people are not held accountable because they do not know what their role is. if BEE does not work and is a flop, then actively participate in creating a strategy that works even if you are opposed. If you complain and do nothing you are as guilty as the people who corruptly benefit from these concepts. Empowerment should not be an issue of race but rather a commitment to build a better and empowered society where everyone can positively use their circumstances, resources and opportunities to live a productive and purpose driven life that empowers us to fullfil the primary tasks of why human beings were created. We are so concerned with dominancy that we forget about the basic principle of being human. Change your attitude, and you might just see your world change!

  • joseph.tettey.9 - 2012-08-06 20:01

    Tokyo is not going to conduct American Type of campaign so what has the disposal of the Shares got to do with the election in December? The BEE shares is simply not paying off the debts.The people have realised purchase of shares with loans is a long,long adventure with no instant cash rewards.You hold to the shares whilst the debts level keeps increasing exponentially.Your reward is in Heaven,God Bless.

  • pmolesworth - 2012-08-06 21:15

    liquidating before nationalisation? Just asking...

  • moloko.maoto - 2012-11-07 18:25

    Sexwale I can vote for if he has to contest for presedency!

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