BEE deal tainted by squabbles
BLACK empowerment deals are becoming increasingly undignified, inflamed by a small number of greedy investors on one side and companies eager to sign up influential partners on the other.
Vodacom seems to be making a genuine effort to ensure shares worth R7,5bn go to a wide base of previously disadvantaged people.
But business acumen also makes it keen to place a stake with black investors who can add value to the company, and that is what is bringing the deal into disrepute.
The lure of wealth has attracted political animals with influence, and their internal squabbling is making yet another well-intentioned deal draw fire for enriching the already rich.
At the other end of the scale is Mustek, a smaller technology player trying to unravel an empowerment deal.
The Puno consortium holds 30% of Mustek’s Brotek subsidiary, and Mustek wants the shares back so it can strike a new empowerment deal at holding company level.
Next month a judge will adjudicate unless the parties settle, but this looks unlikely as neither party wants to back down. To an outsider, egos appear to have soured this deal as much as money. What should have been a simple manoeuvre has ended up in court.
The Democratic Alliance says empowerment deals have been perverted for the benefit of the ruling elite and their business partners.
A group of young black entrepreneurs, the Mybico group, has also stepped up to the plate to belittle the infighting at Vodacom by “opportunist … greedy vultures”.
That backlash should give us hope that the next generation will not follow the same corrupted path, but will they really behave differently when they are tempted with a share of the wealth? Would you?
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