Gigaba: SOEs to prefer black accountants

2011-08-15 12:23

Pretoria - State-owned enterprises (SOEs) have to implement transformation measures that will benefit black accountants, Public Enterprises Minister Malusi Gigaba said on Monday.

"There is transformation to be implemented - we've pointed them to the direction we want them to take," Gigaba told a delegation of black accountants at a breakfast meeting in Pretoria.

He did not go into details about these changes, as it would "steal the thunder" from the SOE boards of directors and chief executive officers.

This was a first meeting of its kind where black accounting firms shared with the minister the problems they faced in the industry as compared to their white counterparts.

Issues raised included hesitation by the government to give them big tenders, which impacted them negatively.

They spoke in turns about how they were disregarded by the government by being refused tenders and "relegated to the last seats in the room", although they undertook to train graduates that white firms refused to train.

Gigaba was requested to intervene so that all SOEs gave preference to black firms and that the focus was shifted from big white-owned accounting firms such as KPMG.

The development of black accountants by big firms was also put on the table by delegates, who said this was the only way they could get more expertise - which would see them getting work from JSE-listed companies.

Examples were given of state companies that had shut their doors to black firms, including Transnet, SAA and Denel.

Gigaba conceded that transformation was part of his department's vision and that the public sector should open doors for these firms as they did not have anywhere else to go when excluded by the private sector.

"There is something we can do for black auditing firms. We are committed to transformation like nobody's business and you will see the changes we are talking about."

Gigaba said all issues raised, including transformation, would be discussed at a chairperson's forum next week, where the government's new growth path and the extended role of SOEs would be discussed.

"We will raise the issues as sharply as you raised (them) here.

"Our view is that you shouldn't have to beg work from the same government that you helped to create," said Gigaba.

  • Eric West - 2011-08-15 12:47

    I guess black accountants are better at "affirmative accounting", ANC style? ;)

  • letsee - 2011-08-15 12:56

    An interesting view from London Times explaining it all… "South Africa is the only country in the world where affirmative action is in the favour of the majority who has complete political control. The fact that the political majority requires affirmative action to protect them against a 9% minority group is testament to a complete failure on their part to build their own wealth making structures, such that their only solution is to take it from others.".

  • Sir Charles - 2011-08-15 13:06

    There goes the neighbourhood !!!

  • andrelouisw - 2011-08-15 13:14

    Yeah! So they can also crook the books!

  • Dead Skunk - 2011-08-15 13:16

    Racist that's all you can say...but of cause because it's Africans being elevated into positions it's OK...

      Point Blank - 2011-08-15 16:44

      No, it's because it's black Africans... get it right.

  • Wes - 2011-08-15 13:29

    Racism is not being hidden anymore. This is against our constitution if anyone cares.

  • Ina SutherlandVAarde - 2011-08-15 13:43

    I would love to know why its taken SOE's 17 years to start implementing such aggressive employment strategies.Make no mistake, I am overjoyed to see that such commitment is made towards the growth and employment of resources in a private capacity in SOE's, rather than continuing to line the pockets of consulting companies to do work on behalf of SOE's, rather than empowering them to do it themselves as quickly as possible. This has been robbing skilled resources from being employed to do the job.What I am shocked & very disappointed as well is that after 17 years government is suddenly making this a BEE issue.How on earth can this action be seen as constitutional?I will be so bold as to say, is this not racist?

  • Pernosco - 2011-08-15 14:11

    I suppose that it makes sense when you are dealing with ''struggle accounting''!

  • news.moler - 2011-08-15 14:15

    What about minority employment, you are the only country that is excluding minorities. Haw... terrible! Chops!

  • OumaRusk - 2011-08-15 15:26

    My heart bleeds. If you are not a big 4 accounting firm then you are overlooked anyway, black or white owned!Smaller white owned firms have the same struggle to get in with JSE listed companies and Government, so find another way to make yourselves wealthy. It takes alot more than 20 years to build a big accounting firm to tackle the big boys.

  • HumanKind - 2011-08-15 15:33

    More scope for "fingers in the till"

  • The Fan - 2011-08-15 15:45

    In time I hope they feel ‘satisfied’ about being ‘the best’ candidate to get the job...go an read a guy called Maslow (something about a triangle)

  • daaidoos - 2011-08-15 15:45

    it's the new SA. Apartheid in reverse. I feel sorry for white south africans having to contend with this crap in the job market

  • Point Blank - 2011-08-15 16:45

    Look I have no problem with this, but is it a requirement to attack whites while "justifying" your action? Why don't you just say, "look white people, we not going to give you a chance.." Instead they seem to want to justify their racist policy by insulting, beliitling and attacking white people... oh the victim mentality is so strong in these ones.

  • Eishh - 2011-08-15 18:00

    I feel sorry for the Big4. All their effort towards BEE & AA down the drain, training black accountants as well as fast track them towards partnership. I believe the Big4's CEO's are all "black" as well as a large portion of their senior partners. Each of them have probably more "black" partners than the biggest of the other "black" firms. These black firms don't have the capacity to do the audit of a Transnet or Eskom, however they already do share in the audit of the SOE's.

      lindela.e.mtshali - 2012-10-12 07:29

      They don't have the capacity to do those audits? Really? Google SizweNtsalubaGobodo. They don't only do SOE's by the way. They also do work for big multinationals like the one I work for.

  • Nikki - 2011-08-15 18:29

    You know.... they speak in this article all about black accountants getting the last seats in the room, black accountants not being taken in by "white" firms for training, big govt owned firms shutting their doors to black firms...the list goes on/etc. However NOT ONCE do they ask WHY this is the case? Could we please hear from the big firms WHY they are shutting out the black accountants...2 sides to a story Minister of Police Leasing Corruption Gigaba...

  • Ant138 - 2011-08-26 08:25

    'Black auditing firms ' - racist to the core ! "This was a first meeting of its kind where black accounting firms shared with the minister the problems they faced in the industry as compared to their white counterparts" The meeting itself is RACIST - I have not heard of any meetings with so called 'White accounting firms', i.e. if they still exist ! As for the rest of government they are doomed to fail even with race being a deciding factor.

  • deminimus - 2011-08-26 15:30

    qualifying as accountants is like flying a jumbo jet. You have to know how to land as well as take off.

      Really - 2011-09-09 07:23

      What does an accountant use as contraceptive? Their personality. Why is the keypad on the telephone and calculator the opposite? So that accountants don’t use the calculator as a phone. In short they are parasites. They don’t create anything real.

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