DUMA GQUBULE: Weak BEE rules underpin fake ownership statistics
A huge discrepancy marks figures on certificates and actual ownership disclosed in annual reports
Reporting on the ownership element of broad-based BEE (B-BBEE) has lost all credibility. This is due to political compromises made by the department of trade, industry & competition during the development of the BEE Codes of Good Practice of 2007 and 2013, as well as sectoral empowerment charters.
In the political economy of the Financial Sector Charter (FSC) negotiations, which dragged on for about a decade, the National Treasury acted like a bouncer for the big banks and insurers, which then bullied the department and relatively junior black professionals represented by the Association of Black Securities & Investment Professionals into submission. To their credit, the community constituencies, which included labour, left the process...