Press Statements

The Black Management Forum Highlights Key Structural Issues Hindering Transformation in the Financial Services Sector

Johannesburg, South Africa – 27 March 2017

The Black Management Forum (the BMF) which is at the forefront of transformation in Corporate South Africa tabled its recommendations on Transformation of the Financial Services Sector before the Standing Committee on Finance in Parliament on Wednesday, 22 March 2017. Part of the submission highlighted some of the key and structural issues hindering transformation in the sector, namely:

  1. Financial Services Sector Codes:
    Though the B-BBEE Act does provide for Sector Codes, the BMF is opposed to the Sector Codes as a matter of principle. Our considered view is that sector codes are minimalist and seek to legitimise the apartheid order in a democracy. If the sector codes are to be agreeable, they must by definition meet or exceed the minimum requirements of the B-BBEE Generic Codes of Good Practice.
  2. Once Empowered, Always Empowered Principle:
    The BMF is opposed to the notion of ‘Once Empowered, Always Empowered.’ We view this principle as unethical, bereft of commercial innovation and out of kilter with the spirit of fundamental transformation. We urge the Standing Committee to reject ‘Once Empowered, Always Empowered’.
  3. Empowerment Financing: The BMF objects to empowerment finance as part of the measured elements in the FSC. The provision of banking, financial services and lending money is in the normal course of business for financial institutions. This measure is at odds with the permissible “deviation” grounds as contained in the Statement 003.
  4. Ownership:
    Equity is fundamental to the establishment and control of a commercial enterprise. Equity confers rights to investors that no other element does, amongst others the right to determine the board composition, to approve remuneration policy and by extension the strategy which the enterprise shall pursue. We equally object to an argument that direct ownership introduces systemic risk whenever black people are to own a direct significant stake in a bank or any financial institution.
  5. Market Concentration:
    The BMF notes with extreme concern the oligopolistic market structure prevalent throughout different economic sectors of our economy. This phenomenon is predominate in the financial services sector. This market structure creates a fertile ground for all undesirable market conduct such as collusion as we have recently seen with the banks but even more importantly it has a tendency of excluding new entrants in the market and in our case black new entrants. To create an inclusive economic growth we need to consider structural deconcentration policies including compelling the dominant players to unbundle and thus open up the market for black new entrants.

    The Black Management Forum went on to further express their concern regarding the state of the Financial Services Sector during their meeting with the Finance Minister Pravin Gordhan on Friday 24 March 2017, where it was agreed upon that follow-up engagements will be held with the National Treasury in this regard.

The Black Management Forum stands for the development and empowerment of managerial leadership primarily amongst black people within organisations and the creation of managerial structures and processes, which reflect the demographics, and values of the wider society.

- ENDS -

For more information, contact:
Anele Ndlovu
Black Management Forum Head of Marketing & Communication
076 431 2899
This email address is being protected from spambots. You need JavaScript enabled to view it.

The Black Management Forum Applauds the Exemplary Leadership of Bonang Mohale as he Bids Farewell as Country Chair of Shell Downstream South Africa

Johannesburg, South Africa, 20 February 2017

The Black Management Forum (the  BMF) which  is at the forefront of transformation in Corporate South Africa applauds the exemplary leadership displayed by Country Chair of Shell Downstream South Africa and former President of the BMF, Bonang Mohale, in championing transformation. As he steps down from his position, he is leaving behind a stronger entity     than what he took over 8 years ago having delivered successive strong business results and a more transformed executive team.   

“Mr Mohale is an epitome of leadership excellence and we are proud to have him as one of our own and to claim the role we have played as the BMF in producing such astronomical business talent.   We would like to applaud him for the leadership he has demonstrated through his carefully considered succession planning by grooming his successor, Mr Hlonipizwe Mtolo, for the past 2 years. This validates the point we have been making that if companies perform thorough succession planning the leadership crises and reversal of transformation gains that we have been witnessing could be averted through such acts of decisive leadership” said the President of the BMF, Mncane Mthunzi.

The BMF wishes Mr Mtolo well in his new role which will be effective from 1 June 2017 at which time Mr Mohale is set to retire.

The Black Management Forum stands for the development and empowerment of managerial leadership primarily amongst black people within organisations and the creation of managerial structures and processes, which reflect the demographics, and values of the wider society.

- ENDS -

For more information, contact:
Anele Ndlovu
Black Management Forum
Head: Marketing & Communications
0764312899
This email address is being protected from spambots. You need JavaScript enabled to view it.

 

THE BLACK MANAGEMENT FORUM SUPPORTS THE COMPETITION COMMISSION IN ITS PROSECUTION OF 17 BANKS FOR ALLEGED COLLUSIVE CONDUCT

Johannesburg, South Africa – 17 February 2017 

The Black Management Forum (the BMF) congratulates and supports the Competition Commission (the Commission) in respect of its referral of a collusion case in terms of the Competition Act No 89 of 1998 (the Competition Act) to the Competition Tribunal (the Tribunal) for prosecution against the Bank of America Merrill Lynch International Limited,  BNP Paribas, JP Morgan Chase & Co, JP Morgan Chase Bank N.A, Investec Ltd, Standard New York Securities Inc., HSBC Bank Plc, Standard Chartered Bank, Credit Suisse Group; Standard Bank of South Africa Ltd, Commerzbank AG; Australia and New Zealand Banking Group Limited, Nomura International Plc., Macquarie Bank Limited, ABSA Bank Limited (ABSA), Barclays Capital Inc., Barclays Bank plc (the Respondents).

The BMF is of the view that this complaint referral is a further indicator of the Commission’s ability to tackle inequalities in a complex global monetary system.

The BMF hopes that such investigation and complaint referral sheds light on the Respondents’ compliance with various banking governing policies such as the Third Basel Accord and the Financial Markets Act No 19 of 2012. In addition, bring to the fore the clandestine manner in which banks operate in order for there to be more transparency in the banking system.

The Black Management Forum Student Chapter Congratulates 2016 Matriculants

Press Release
Johannesburg, 5 January 2017 – Interests of a child are paramount important in everything concerning the child

On Wednesday, 4 January 2017, the Honourable Minister of Basic Education, Angie Motshekga announced the much anticipated 2016 matric results. As the Black Management Forum Student Chapter (BMFsc) we would like to commend and congratulate the class of 2016 for raising the bar to 72, 5% an increase of 1, 8% compared to the 2015 national pass rate. Our congratulations also go to the Department of Basic Education, stakeholders and provincial leaders that have actively played their part in achieving this milestone.

The above achievement however, cannot be merely accepted without critique. We have concerns around the gap between the pass rate in private schools and public schools. We are still faced with inequalities after 20 years since the promulgation of the 1996 South African Schools Act. Eastern Cape, Limpopo and KwaZulu-Natal matriculants constituted 54% of the class of 2016 and the provinces performance in the last three years have been below 70% threshold. These inequalities contribute to the low pass rate in these provinces and hampers the efficiency of a department that is the guardian of nation building and the future of South Africa.

The BMF congratulates the appointments of Themba Mkhwanazi and July Ndlovu

FOR IMMEDIATE RELEASE
PRESS RELEASE

Johannesburg, South Africa – 28 July 2016

The Black Management Forum (BMF) which is at the forefront of transformation in Corporate South Africa is delighted with the appointments of Themba Mkhwanazi and July Ndlovu to the positions of Kumba Iron Ore CEO and CEO of Anglo America's coal business in South Africa respectively . "We are very thrilled and excited about these appointments. It is very gratifying to us to see that there are still companies who regard transformation as a business imperative and continue to make concerted and deliberate efforts in ensuring that the transformation gains they have achieved as a company are not reversed", says BMF President, Mr. Mncane Mthunzi.

The appointments of Mkhwanazi and Ndlovu go a long way in dispelling the lack of black skills myth that Corporate South Africa continues to use as an excuse for not appointing black executives in these critical positions. "Anglo American has demonstrated their seriousness about succession planning and respect for black talent and leadership. These appointments inspire all of us as black professionals that we have a future in these companies and that our talents can achieve these greater heights", Mthunzi added.

This is far from the arrogant phenomena we have been witnessing lately from Corporate South Africa where black CEOs have been replaced by white CEOs by our own South African companies led by our own and black Chairmans. It is very worrying that our own homegrown companies built on the blood, sweat and strength of our own black people are not at the forefront of driving the transformation agenda and are being surpassed by companies of international origin. 

The Black Management Forum extends its well wishes to Mr Mkhwanazi and Mr Ndlovu and pledges its unwavering support to them and their businesses.

The Black Management Forum stands for the development and empowerment of managerial leadership primarily amongst black people within organisations and the creation of managerial structures and processes, which reflect the demographics, and values of the wider society.