Discovery Bank's "no whites" share plan under fire

[Antono]

I actually agree with EADC and I have also pointed it out in the initial thread on this topic. Solidarity isn’t tackling the problem, they are tackling an entity who have to abide by the ‘new’ B-BBEE Sector Charters which came into play in 2017.

Discovery Bank isn’t the issue or the human rights criminal, it is the dti. I would love to know how many Solidarity members who are titled to a business entity are abiding by the B-BBEE Sector Charters. It seems everyone is happy with a 10% empowered partner than having that 10% distributed in accordance with the Financial Sector BEE Charter.

Nobody wants to tackle the issue at the root but is willing to tackle an abiding entity to score political points.

Sorry but you are so far of the mark it is funny your post actually appeared. BBBEE does not require ANY organization, finance or otherwise, to exclude any part of the population in an incentive scheme or in doing business with. What you are saying is the BBEEE requires P&P to sell t only a certain percentage of white in order to comply. Stop googling B-BBEE Sector Charter.

 

[jack_spratt]

This man is an idiot of note and is only interested in aligning himself with the corrupt government in order to line his pockets, as if it needs any more lining. The most amazing part of the article must be this sentence - 'It explained that its primary goal is to build a bank that is progressive, nation building and rewarding for its customers. '

HTF does excluding any part of the population contribute towards nation building EXCEPT if you consider those excluded as not being part of the nation.

I do not think any white person needs an invitation to stay away from the bank but the unfortunate truth is that many, many whites contribute towards this 'initiative' by virtue of the fact that they are part of a medical/insurance scheme backed by discovery as part of their CTC with no way to opt out. And this wannabe gangsta knows this.

The issue here is that whites are a minority. The non-white middle class and up is the majority. So it is becoming more obvious that white money is becoming "less needed" by big business.

 

[TheChamp]

This man is an idiot of note and is only interested in aligning himself with the corrupt government in order to line his pockets, as if it needs any more lining. The most amazing part of the article must be this sentence - 'It explained that its primary goal is to build a bank that is progressive, nation building and rewarding for its customers. '

HTF does excluding any part of the population contribute towards nation building EXCEPT if you consider those excluded as not being part of the nation.

I do not think any white person needs an invitation to stay away from the bank but the unfortunate truth is that many, many whites contribute towards this 'initiative' by virtue of the fact that they are part of a medical/insurance scheme backed by discovery as part of their CTC with no way to opt out. And this wannabe gangsta knows this.

Which man is an idiot of note, Adrian Gore?

 

[Vrotappel]

The issue here is that whites are a minority. The non-white middle class and up is the majority. So it is becoming more obvious that white money is becoming "less needed" by big business.

I actually think we are being taken for granted. The same way the DA treats our vote.

 

[Ninja'd]

I thought we already dealt with this. Why's this being regurgitated?

 

[LazyLion]

I thought we already dealt with this. Why's this being regurgitated?

Because DRAMA! CONTROVERSY! Torches and Pitchforks!

It's stupid... there are all kinds of advantage schemes going on in this country... but ppl choose this one to be upset over. And it's actually a good idea to address inequality. I'm happy for it to proceed. At some point in the future we will have to stop with the "redressing past wrongs"... but we are not there yet.

 

[SaiyanZ]

Well was actually referring to something else he said.

But while on the subject it was also pointed out Discovery had numerous options including giving equal shares to blacks and whites or to sell at market value to blacks. The option they chose is one based purely on skin colour and does not benefit any of the "disadvantaged".

If they sell shares at market value to blacks then there's no guarantee that they will meet the 10% requirement. So whether the bank can operate or not would always be in limbo on the whim of the black shareholders. With giving the 10% to black customers they can always guarantee at least 10% black shareholders.

They could have given free shares to blacks and whites yeah, but diluting the value of other real investors money by another 10% is quite a hit. Shareholders would have rather go the BEE empowerment deal route instead of taking another 10% hit I would think.

 

[EADC]

And as usual crickets. Makes a claim but not prepared to substantiate is when called out.

Let me substantiate, No thanks im good.

 

[lived666]

Already requested quotes from Momentum and Fedhealth....

You are a tad naive if you think both these companies do not implement and have BEE partners and policies.

 

[jetlee]

If they sell shares at market value to blacks then there's no guarantee that they will meet the 10% requirement. So whether the bank can operate or not would always be in limbo on the whim of the black shareholders. With giving the 10% to black customers they can always guarantee at least 10% black shareholders.

They could have given free shares to blacks and whites yeah, but diluting the value of other real investors money by another 10% is quite a hit. Shareholders would have rather go the BEE empowerment deal route instead of taking another 10% hit I would think.

Im still confused then ? giving away the shares does not imply they will be held ? What stops 50% of these free shares from being sold in 12 months to white people, does the bank loose their licence ? Who validates that shareholders are indeed black? While I'm all for nation building, we cannot build a nation by excluding, no matter how "noble" you think it is .. inclusion is the only answer, this exclusionary tactic just builds hate and resentment

 

[Ninja'd]

Already requested quotes from Momentum and Fedhealth....

Momentum has a higher BEE rating than Discovery.

 

[Gaz{M}]

This is racism. Legal racism is still racism.

They could give all clients shares. Whites make up a small % of the population, so they would only need to issue a few more shares to meet their 10%. Or they could offer client the ability to buy Discovery Bank shares if they are black. The fact that they are free is the problem.

In any case, I will be cancelling all my Discovery services except medical aid (no choice there).

 

[Antono]

You are a tad naive if you think both these companies do not implement and have BEE partners and policies.

I do not think it is about BEE status/partners or policies. Discovery Bank is not being forced by BEE policy to exclude a certain segment of the population, they do it because:

a) they are not concerned with loosing white business since 99% are locked in by a employer scheme and cannot boycot them.
b) the strategy is to target the low income market by using an incentive scheme. This is like offering KFC meals if you vote for a political party. Simple but effective. High yield, low risk strategy.

 

[TheChamp]

This is racism. Legal racism is still racism.

They could give all clients shares. Whites make up a small % of the population, so they would only need to issue a few more shares to meet their 10%. Or they could offer client the ability to buy Discovery Bank shares if they are black. The fact that they are free is the problem.

In any case, I will be cancelling all my Discovery services except medical aid (no choice there).

Would you be cool with whites being barred from buying shares? I have a feeling that is still going to be a problem.

 

[Necrotic]

Because DRAMA! CONTROVERSY! Torches and Pitchforks!

It's stupid... there are all kinds of advantage schemes going on in this country... but ppl choose this one to be upset over. And it's actually a good idea to address inequality. I'm happy for it to proceed. At some point in the future we will have to stop with the "redressing past wrongs"... but we are not there yet.

Look around you... will be F@kall left of this country Loooooong before "u" decide that all is "equal" now.
Its pathetic actually... become fashion to be anti white, and part of Discovery's PR now it seems

 

[lived666]

I do not think it is about BEE status/partners or policies. Discovery Bank is not being forced by BEE policy to exclude a certain segment of the population, they do it because:

a) they are not concerned with loosing white business since 99% are locked in by a employer scheme and cannot boycot them.
b) the strategy is to target the low income market by using an incentive scheme. This is like offering KFC meals if you vote for a political party. Simple but effective. High yield, low risk strategy.

Their other option then is to offer the 10% to some BEE entity behind closed doors - so instead of a vast number of individuals maybe benefitting from this, one fat cat or company behind the scenes just gets wealthier - would that be better in your eyes - this is how most other companies operate because of apartheid-style BEE laws.

 

[Gaz{M}]

Would you be cool with whites being barred from buying shares? I have a feeling that is still going to be a problem.

It's the lesser of two evils - all BEE schemes exclude whites from buying shares and the shares are subsidised or sponsored. Sasol, MTN, Multichoice, Vodacom etc. did this.

Yes it is still racist, but at least it's them putting up their own cash to own shares.

 

[SaiyanZ]

Im still confused then ? giving away the shares does not imply they will be held ? What stops 50% of these free shares from being sold in 12 months to white people, does the bank loose their licence ? Who validates that shareholders are indeed black? While I'm all for nation building, we cannot build a nation by excluding, no matter how "noble" you think it is .. inclusion is the only answer, this exclusionary tactic just builds hate and resentment

Not sure exactly how it will work. I'm guessing shares will vest over time so you need to stay with Discovery Bank say 5 years to get the full 100%. If you sell your portion or leave the bank then the remaining shares get bumped up or diluted to maintain the 10% level. It will probably be a ring-fenced 10% separate from the rest of the normal shares.

 

[Antono]

Their other option then is to offer the 10% to some BEE entity behind closed doors - so instead of a vast number of individuals maybe benefitting from this, one fat cat or company behind the scenes just gets wealthier - would that be better in your eyes - this is how most other companies operate because of apartheid-style BEE laws.

Actually irrelevant to the discussion, it's not really about who benefits (we all know how corruption works), it's about the principle of willingly excluding a specific segment of the population.

 

[SaiyanZ]

It's the lesser of two evils - all BEE schemes exclude whites from buying shares and the shares are subsidised or sponsored. Sasol, MTN, Multichoice, Vodacom etc. did this.

Yes it is still racist, but at least it's them putting up their own cash to own shares.

How many poor blacks are actively buying shares in SA vs how many need/use a bank account? Discovery's method should reach more people than just those who have enough money to buy shares.