Broad-based BEE is a form of economic and moral corruption
22 January 2025 - 17:36
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Michael Avery’s superb article on broad-based BEE is a competent explanation of why it has been such a failure in SA (“Tide is rising against racial bean counting”, January 21).
What is often not understood is that broad-based BEE is also an economic policy and is part an economic system. The effect of this has not been sufficiently analysed.
It sits like a heavy weight on the economy, discourages foreign investment, favours a small elite, and ironically does not encourage entrepreneurship because it is easier for the individual to choose the gravy train of broad-based BEE.
It is a form of economic and moral corruption because there is no quid pro quo — the employer gives, and receives nothing in return except so-called “engineered statutory compliance”.
Norton Rose Attorneys have bravely and timeously challenged the new Legal Sector Code because it is impractical, unconstitutional and in my view racist. Why should a government decide that a legal firm must employ on a racial basis, and also determine whether so-called disadvantaged candidates (who have the same qualifications as other practitioners) should be appointed and promoted ahead of others?
It is time for other employers to exercise their rights on these absurd codes, which cause unnecessary expense to be incurred from year to year.
Should the system be withdrawn investment will flow in and the economy will grow, thereby creating jobs — the real issue for the citizens of SA.
Rod Harper Partner, Cowan Harper Madikizela
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
LETTER: Legal Sector Code is racist
Broad-based BEE is a form of economic and moral corruption
Michael Avery’s superb article on broad-based BEE is a competent explanation of why it has been such a failure in SA (“Tide is rising against racial bean counting”, January 21).
What is often not understood is that broad-based BEE is also an economic policy and is part an economic system. The effect of this has not been sufficiently analysed.
It sits like a heavy weight on the economy, discourages foreign investment, favours a small elite, and ironically does not encourage entrepreneurship because it is easier for the individual to choose the gravy train of broad-based BEE.
It is a form of economic and moral corruption because there is no quid pro quo — the employer gives, and receives nothing in return except so-called “engineered statutory compliance”.
Norton Rose Attorneys have bravely and timeously challenged the new Legal Sector Code because it is impractical, unconstitutional and in my view racist. Why should a government decide that a legal firm must employ on a racial basis, and also determine whether so-called disadvantaged candidates (who have the same qualifications as other practitioners) should be appointed and promoted ahead of others?
It is time for other employers to exercise their rights on these absurd codes, which cause unnecessary expense to be incurred from year to year.
Should the system be withdrawn investment will flow in and the economy will grow, thereby creating jobs — the real issue for the citizens of SA.
Rod Harper
Partner, Cowan Harper Madikizela
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
LETTER: Ultimate BEE deal
MICHAEL AVERY: Tide is rising against racial bean counting
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