22 JUNE 2016
THE BLACK MANAGEMENT FORUM (BMF) DISAPPOINTED AT THE APPOINTMENT OF ROB SHUTER AS GROUP CEO AND PRESIDENT OF THE MTN GROUP (MTN)
The Black Management Forum (BMF) today said that it views the decision by MTN Group (MTN) to appoint Rob Shuter as CEO and President of the company as a serious blow to transformation. The BMF notes that this appointment by MTN contributes to the steady decline in the number of black South Africans at the leadership helm in companies.
“The BMF’s position is informed by the clear reversal of black representation in Top JSE listed companies. There is a general unwillingness for transformation at top management level which has resulted in the decline in the number of black South African CEOs” said BMF President Mncane Mthunzi.
“MTN may put forward reasons it argues to be valid for the appointment of its new CEO, however, the company would undoubtedly agree that it has squandered a good opportunity to reaffirm its commitment to transformation. Prior to this appointment, MTN had demonstrated exemplary leadership by successively having black CEOs”, Mthunzi added.
MTN is a proud export of South Africa across the African continent and beyond; hence its appointments are of high importance. The BMF holds the view that MTN’s failure to appoint a black CEO signals that transformation is not a business imperative, which is disappointing.
It is disheartening to note that these decisions are made by the Board of Directors with the majority of black people and under black chairmanship. The lack of thoughtfulness in dealing with matters of succession in these companies is appalling.
“The BMF will also engage with the Public Investment Corporation and other shareholders of reference on their expected role and moral obligation for the appointment of black CEOs and Executives in general. These companies are owned by the public and yet they don’t reflect the demographics of our society”, Mthunzi concluded.
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Johannesburg, South Africa – 26th April 2016 – The Black Management Forum (BMF) is calling for tougher measures to be enforced in the form of fines and penalties for companies that continuously fail to comply with the Employment Equity Act. “Corporate South Africa has done as it pleases and without consequences for disregarding the Employment Equity Act. This is disrespect for the rule of law.” said the BMF President Mr. Mncane Mthunzi.
It is totally unacceptable that the statistics for top management levels of Corporate South Africa are still sitting at these high numbers for White people. The economically active population (EAP) representation vs. the workforce in Top Management for Africans are 77.4% vs. whites who are only 9.9% yet, the workforce at Top Management for Africans is 14.3% and Whites are 68.9%. An even more worrying phenomena presented by the CEE report as released yesterday is that the Skills Development funding allocation is seemingly largely spent on the same overrepresented White male grouping. 41.7% of the Skills Development funding has benefited White Males on top management and ONLY 16.7% towards African males at the same level. The picture is no different for women at the same level depicting a 13.4% skills development funding towards White females vs. 10.7% for Africans.
The industry charter councils are not helping in making progress and it is about time they are disbanded as they are not adding value in the transformation landscape. “The charter councils are not helping as they have their executive and senior management levels at 60% targets for blacks when the EAP is 90%.” said Mthunzi. It is clear that the lack of transformation within companies is due to lack of willingness to transform by Corporate South Africa as the report reveals that there are 41.2% Professionally qualified Africans vs. 38% for Whites and yet these statistics do not find expression in the recruitment and promotion patterns of companies. The report reveals that promotion opportunities still favour Whites at 55.2% vs. 22.2% for Africans and same for recruitment opportunities which reflect 52.1% for Whites vs. 27.6% for Africans.
“We are stagnant, particularly when it comes to top or executive leadership positions. There are a number of gatekeepers within corporate SA that are not aligned to the national project of a non-racial, non-sexist democratic country. They don’t understand the rationale and the bigger picture of what needs to be done to achieve the much needed socio-economic transformation for a more progressive South Africa. I hope these figures are a wake-up call to the legislators, whose policymakers are ineffective in driving change.
It is about time that they come in and give some strategic intervention,” said Mthunzi.
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Fellow Colleagues and Membership
It is with great excitement to announce the appointment of Ms Busi Mavuso as the Managing Director of our organisation, the Black Management Forum.
Ms Mavuso has been with the BMF since May 2009 and has held several financial positions including being the Chief Financial Officer and Head of Operations. She started her career 20 years ago in the banking industry where she stayed for 7 years and has held various finance positions in different companies within various industries ranging from Education; Automotive; Communications and Healthcare.
“Busi has been a dedicated and loyal employee to the BMF and I’m excited to see her taking over the MD position. Her institutional memory, administrative aptitude and passion for the organisation is incomparable. This is a clear demonstration of our ability to grow our own talent and we trust other companies and institutions could learn from the BMF. We are looking forward to her contribution in taking the BMF to greater heights”, the BMF President, Mncane Mthunzi commented.
Ms Mavuso holds a BCompt Degree from UNISA, a postgraduate certificate in Management with GIBS and an MBL with UNISA SBL. She is also studying towards her ACCA certification.
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