The Black Business Council (BBC) and the black Business Council in the built Environment (BBCBE) feel undermined by the seven listed construction giants upon signing the voluntary rebuilding programme (VRP).The VRP is a program for redress post the findings of the competition commission (CC) and subsequent fast track settlement process between the cc and the ff is construction companies.it was initially concluded between the south African for civil engineering contractors(SAFCEC) Representing the emerging sector on 10 December 2015.
BBCBE secretary-General, Mr Gregory Mofokeng said his organization represented the VRP to government in early 2014 for its support and implementation while receiving unqualified support from its mother body the BBC. “Since the signing of the settlement agreement, the narrative around this programme has served to undermine the role of the BBC and BBCBE and has effectively diluted our role to be that of beneficiaries and not architects of the programme,” said Mofokeng in a statement.
Black business believes that as far as some of the stake holders are concerned, an impression has been created that they have been mere spectators from being the co-architects of this very important programme.
Government released a statement on 13 February updating the nation on the implementation of VRP. The statement outlined two pillars of the VRP which were the Tirisano Trust fund pillar and the Transformation Pillar. Mr Mofokeng said Black Business agreed broadly with the Tirisano trust fund which would be capitalized to the tune of R1.5bn over the next two years. “We have made a submission to government proposing that 50% of the funds (R600m) should be invested back in the industry in the form of working capital and construction guarantees to emerging companies,” explained Mofokeng.
The secretary general also stated that the Transformation Pillar relates to established companies having an option to either make available 25% of their annual turnover to be implemented by the emerging sector consortia or to sell equity of not less than 40% to black investors. “Black business, position on the transformation pillar is that it must benefit a broad beneficiary base,” said Mofokeng.
Mofokeng further said they had worked closely with WHBO and Raubex to select black consortia that will benefit from the allocation of work packages. Black Business noted interest from the government’s media statement that Steffanutti Stocks had identified two emerging companies to partner with. “We state categorically that should Stefanutti Stocks not open discussions with us on the regularization of these companies and their willingness to partner with other black companies and buy into our broad-based beneficiary model we will not support their partnership,” said Mofokeng.
In concluding, Mofokeng said this is an opportune time for black players in the construction industry to define how they must be empowered and how should the sector be transformed. Since the implementation of transformation laws were implemented white monopoly capital has always dictated the pace, shape and form of transformation.
“Black businesses are still subjected to a demeaning process of “beauty contesting” themselves before white capital who have the final say on which black consortia or investment holding company is prettier and sophisticated compared to the rest and as such deserves a seat at their dinner table. It is the same white capital that has the audacity to blame government for the slow pace of transformation and for creating narrow BEE, when in practice they are the ones to blame”.
