In the same week that GijimaAst has been awarded a top empowerment rating by Empowerdex, the listed ICT company's non-executive chairperson, Robert Gumede, has criticised BEE deals that empower a handful of people but do not create enough jobs.

Gumede said: "BEE, as we know it today, has not really created the much-needed jobs and entrepreneurs, as black business is only focused on buying minority stakes in white companies, without hands-on involvement.

Serial BEE deals

"Typically in the current climate, you have serial BEE dealers who sign different minority BEE deals during breakfast, lunch and dinner on the same day; hence most BEE deals fail, as our people never create an identity with a particular business or sector because of a BEE deals rat race," he said.

Institutions such as the Industrial Development Corporation, Public Investment Corporation, Khula and Umsobomvu Youth Fund can play a role in helping black business to gain control of key industries, "but success will only come if you are hands-on".

Up until the end of last month, Gumede was GijimaAst's executive chairperson. The company was this week awarded an AA empowerment rating for complying with all pillars of the BEE scorecard requirements, which include ownership and employment equity.

GijimaAst has over 50 percent black executives, 42 percent black staff, including a black chief executive, Jonas Bogoshi.

It transformed the ailing AST when Guma (formerly Gijima) executed what Gumede calls "a white economic empowerment deal, and not a BEE deal, because AST were not profitable, with no balance sheet, declining revenues, low staff morale and no transformation agenda".

Telkom and IDC

Gumede speaks highly of Telkom and the IDC in particular, which provided Guma with a five-year term loan of R10-million. Guma not only made a success of the new smart-card venture, but created more than 200 highly skilled jobs and was able to pay back the IDC loan within two years.

Gumede has thrown down the gauntlet to fellow black businessmen. "I am looking forward to an open and robust debate among black business, as we take stock of the successes, failures and challenges of BEE over the past 15 years.

"I believe the ANC is committed to engage with black business and white capital in redefining BEE so that it can benefit the majority of our people as the BEE net is widened to cater for more, not a select few who monopolise black business opportunities."

Black business needs to create and develop role-model businessmen who are focused leaders, astute, know their business and, most of all, create sustainable jobs — instead of occupying several board seats in different and non synergetic businesses."

Maponya empire

Gumede lauded veteran businessman Dr Richard Maponya, who built up his empire long before BEE was a dream. "His 'never say die' and 'I can' spirit make him a role model for black business. He demonstrated no amount of 'pull- him-down syndrome' was going to stop him," said Gumede.

Gumede started out in the ICT sector in 2000 by investing over R30-million of his own money into a smart card company, ACT. He would later learn that the company was technically insolvent.

After years of court battles between him and Briton Dr John Sterenborg, the former business associate who sold him ACT, Gumede emerged victorious and has now instituted legal action against Sterenborg, both in SA and England to recover over R50-million as per a 2006 Supreme Court order.

The Times


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