This BEE Does Not Sting
The largest transaction to occur under the auspices of South Africa’s Black Economic Empowerment program appears set to go through, and most observers are lavishing praise on the deal and its ramifications. The Economist has the details.
April 14th, 2008 at 9:05 pm
Of course, the Economist does not say why this being a more “broad based” program is better. Better for whom? The shareholders of Sasol, the employees, the citizens of the country? Why are the high profile BEE “personalities” bad? This is a policy supported by the government, when the benefits are viewed as broad or narrow. The Economists’ blessing of this particular transaction only speaks to their mute voice on past transactions.
April 19th, 2008 at 3:13 pm
Think carefully- Sasol did this deal because they had to. In fact the entire deal is actually quite clever given the BBBEE legislation, and the failure of the ANC government to provide proper education. Watch as the employees who were exluded from this deal, and are part of the Sasol engine, depart. Again say thanks to our incompentent government.
P.S. I work for Sasol - this article completely omits the issues of real relevanmce
April 21st, 2008 at 1:59 pm
Two good points, though I think I may lose the plot a bit with regard to the concrete arguments you both are making. I’m not certain how a broad-based program could be bad, but i do not consider myself an expert on economic interests. As for SASOL having to make the deal, I’ll trust that you know more than I do, but surely that does not mean that good cannot come out of the deal. I’d be happy to hear more critical commentary, but I’m not certain how this deal is a bad thing.
Thanks –
dc