Manuel calls for BEE reform

Since legislation to clarify the BEE rules was passed two years ago, there were all kinds of things that businesses have done, good and bad, cynical and genuine, he is quoted as saying. There will have to be a review. The paper notes that BEE policy has come under fierce criticism from right and left amid accusations that the main beneficiaries are a small group of oligarchs with links to the ruling ANC. The FT says Manuel’s remarks will be broadly reassuring to businesspeople, who argue that the regulations are tying them down in red tape and restricting economic growth. But many warn that BEE is fostering a dependency culture by encouraging the nation’s small educated black elite to pursue lucrative BEE deals rather than build careers. Manuel also conceded that there were businesses which followed the letter rather than the spirit of the policy by appointing token black managers and board members. Martin Kingston, deputy chairman of Rothschild in SA, and a prominent player in the world of empowerment deals, backed the call for a review. ‘It is appropriate to take stock’, he said.’ It’s generally accepted that it (BEE) is desirable but the issue is whether the formula is right.’ Full Financial Times report