The DTI has a breakfast – more like a teddy bears’ picnic (codes were launched this morning)

The cellular networks were working overtime to inform the cynical blogger about the launch of the codes. Apparently there was a launch this morning but alas I was not invited – in fact I wasn't even aware of it. I was given a running commentary.

(Reader) Why do they insist on using Teddy as the MC, he is awful as usual.

(Paul) What, worse than anything else that the DTI has to offer?

(Reader) Can we talk about Teddy's TWANG!. Which would be bloody impressive if he could combine that with appropriate English language and grammar

(Paul) Which Teddy is that

(Reader) Teddy Daka

Is this not the same person who has just resigned from the SAA board? But I digress.

A presentation was delivered which I have attached but it's a bit grainy and not easy to read properly. Nevertheless I'll go over a few of the things they might have discussed (I wasn't there to be sure about this).

• Five elements with points raised to 105
  
• QSEs and generics to look at all 5 elements
  
• Priority elements introduced – ownership, skills development, enterprise and supplier development
  
  • QSEs have to consider ownership and one priority element
    
  • Generics have to consider all priority elements
    
• Those not meeting the THRESHOLDS of the priority elements drop a level
  
  • QSEs go down one level
    
  • Generics (or large entities as they call them) go down two levels
    
• Looks like you need 40 points to get on the scorecard (it might even be possible to get negative points)
  

Hmm – Rob is using a stick here. It will as sure as hell beat him first. Back to the presentation

• 100% black owned EMEs are a level 1
  
• 50% black owned EMEs are a level 2
  

And now for the only positive thing in the new codes.

• Adjusted thresholds
  
  • EMEs – less than R10m
    
  • QSEs – between R10m and R50m
    
  • Makhulus above R50m
    

And here are the elements

Ownership

I've never paid much attention to ownership because I think it's a crock – however the admirable BEE council don't and they've made it a priority element. Target is still 25 points.

Management Control

Incorporates top, senior and middle management (junior has been removed)

Skills development

They must be so proud of themselves because they've included internships and apprenticeships. But here's the bugger, they've narrowed the skills set to targeted skills, set a 40% threshold minimum and brought in the old EAP. And you can bring in black unemployed people.

Enterprise and supplier development

Another priority element with a 40% threshold but wait there's more (in fact there's so much bullshit here that I will limit myself to the extraordinarily idiotic). If you are not a value adding supplier then your BEE score won't count under procurement. One doesn't know whether the value-adding supplier definition is going to be changed but under the current definition a value adding supplier must be registered for VAT and their NPBT and total labour costs (when added together must be more than 25% of turnover). This is a bizarre form of mild economic engineering – most micro enterprises turnover less than R1m (which is the VAT threshold) so what now – do they go and register for VAT which adds to their admin overheads? Hold on – this might actually be brilliant and could lead to a little smile from Pravin. Get Rob's goons to force more companies to register for VAT and he might collect more money (VAT generates 25% of all tax revenue you know). Back to this – some businesses cannot be value-adding suppliers it's not in their nature. Retailers would have a high turnover but with very low margins and as such their labour costs will always be substantially less than say a law firm.

SED

Targets aren't in the presentation. There was a rumour that SED contributions would be limited to education. But this doesn't seem to be the case.

And what I think

The overriding sentiment in this presentation is that the government (a caring one you know) has done all it can to assist in the transformation of South Africa and it is the private sector that has let them down. And when you consider the quality of personage sitting on the BEE Council you can imagine that they pushed this deluded message home to Rob, who wouldn't know any better. It's almost victim-like. And I think we need to view these daft (sic) codes within the context of this clouded delusion. I can't see that these codes are going to be any more successful than the current ones – in fact with all the negative deductions and higher thresholds it's very likely that BEE will have run its course within three years.

We've now got an opportunity to raise our voices about this. The chances are that Rob has already made up his mind about these and they are going to be gazetted – but let's give this useless individual a piece of our mind and some bedtime reading.

The final word comes from a person at the presentation who summed the whole thing up perfectly.

Let's consider, the lack of appropriate sound, the lamp in the projector, the late start, the lack of food, the sub-standard cold coffee, Teddy, his twang, his grammar and his politically incorrect comments which he thinks are jokes and then his fall literally off the stage?! REALLY

A great metaphor for DTI (read Rob Davies) mediocrity.