LETTER: SA public policy gone mad
How exactly does the Grand Parade decision promote the spread of greater black ownership?
The Competition Commission’s decision to reject R500m of investment into SA is public policy gone mad. Grand Parade, a majority black-owned company, has taken a decision to sell one of its assets and been overruled by bureaucrats, who completely miss the point of the law they are meant to promote.
The commission ruled in terms of section 12A (3)(e) of the Competition Act, which states that on public interest grounds they must consider “the promotion of a greater spread of ownership, in particular to increase the levels of ownership by historically disadvantaged persons...” How exactly does this decision promote the spread of greater black ownership when it denies the right of a black company to sell its own assets and realise the value they have created?..
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