What’s with Ajay Lalu. His responses are so incredibly predictable and jungle-approved. Is he ever able to take a look at something and say, “well I’ll be, that really isn’t so bad after all”. Once again his glass is half empty (in fact I suggest that it’s probably been stolen). His response to the JSE black ownership exercise
it was "absolutely unacceptable" that in 2010 a mere 8 percent of the JSE was directly held in black hands.
And then
I believe that the majority of that 8 percent has not vested unencumbered (debt free) in the hands of the recipients.
And finally
the methodology is fundamentally flawed since it assumes that all the black ownership is 100 percent black owned, which is not the case when you look at companies like Investec
On the first point
Tell me Udge – what does absolutely unacceptable mean? And who is to blame for this? And once you’ve figured this out, who is going to correct it? And why 8% – is your knowledge of code 100 so scant that you cannot accept the exclusions it permits?
On the second point
This obsession you have with encumbrance is weighing you down. Everything in life is encumbered. I am willing to bet that just like me your house is bonded and your car is financed. Does this mean that you would rather these shares be handed out gratis? How on earth (in my prior life I would have used a commonly mentioned expletive that would have been preceded by “the”) are we supposed to create wealth for the majority of the population if we just hand stuff out. This is the biggest flaw in the BEE system – we have created a culture of connected entitlement. Who needs to risk personal wealth when it will be handed over on a platter and when it isn’t we’ll just fleece the government.
Get off your encumbrance horse – it’s a reality of life in any country. I have heard stories about people (both black and white) re-mortgaging their houses to buy Brainware shares 15 years ago (and you know what happened to them, they are probably still attempting to service this debt)
And the third point
Are you sure about this? Did you read the press release that the JSE issued – if not I’ll include the paragraph that suggests you might not have read it properly
The percentages evidenced through the study include only persons who are, with current data, able to be established to be black and exclude black economic interests in mandated investments. It is therefore likely that further analysis will indicate more extensive black shareholding of companies listed on the JSE.
In fact that paragraph talks to your first point as well. They didn’t take into account a number of criteria like mandated investments (which excludes the millions of black beneficiaries who have their money managed by the PIC). They also excluded retail shareholders. The figure might be a whole lot higher.
|
Total market capitalisation of SA traded equity |
100% |
|
Less cross holdings & Treasury shares |
11% |
|
Actual capital |
89% |
|
Less Mandated investments (38% of 89%) |
34% |
|
Less State held shares |
1% |
|
Total Capital Measured |
54% |
|
Less Foreign operations % of total capital measured (19%) |
11% |
|
Denominator measured |
44% |
|
Total black 8%/ total remaining |
18% |
Table showing the calculations and exclusions (using code 100 because they understand it)
Enough with them negative waves man.