Thu. Aug 22nd, 2019

PIC Inquiry: Iqbal Survé hammers “artificial” BEE for being a sham

PIC Inquiry BEE Iqbal SurvéTuesday was an eventful day at the PIC Inquiry, as star witness and millionaire investor Iqbal Survé shared his stinging critique of the BEE system.

pic inquiry iqbal surve hammers artificial bee for being a sham 1024x853 - PIC Inquiry: Iqbal Survé hammers “artificial” BEE for being a sham

fa31db8b 26022827148 a8f519ecbc k 1200x1000 - PIC Inquiry: Iqbal Survé hammers “artificial” BEE for being a sham

Controversial businessman Iqbal Survé, who has been addressing the PIC Inquiry hasn’t been afraid to drop bombshells. The millionaire turned his attention to the Black Economic Empowerment (BEE) model on Tuesday, where he lambasted the programme for its shortcomings.

IOL even quoted him as labelling the PIC’s investment strategy as “racist”.

Public Investments Company: What is the PIC Inquiry?

Announced in October 2018 by President Cyril Ramaphosa, the Judicial Commission of Inquiry is investigating allegations of impropriety following reports of poor governance and precarious investment processes.

The commission’s terms of reference also include a review of the PIC’s governance and operating model, possible changes to their founding legislation and a suspect Memorandum of Incorporation and investment decision-making framework.

Iqbal Survé slams BEE model

BEE was designed to help disenfranchised black citizens find work after the fall of apartheid. But in its 22-year existence, the programme has been blighted by poor management and questionable implementation. Despite its good intentions, implementation has been sub-standard.

Survé pulled no punches as he ripped into the “negligible” business model. He argued that any attempt to bridge racial barriers were artificial, and claimed that the inequalities of society still reflect on the stock market:

“The model of black economic empowerment (BEE) was not designed to bring about meaningful economic transformation but served as a mere entry point into the capital markets, albeit in a totally artificial way. Real economic wealth still rests in white-controlled-and-dominated companies.”

“The truth is, effective black ownership and control of these entities was negligible. The result is that racial inequalities exhibited elsewhere in the South African economy, such as ownership and control of land, continue to be reproduced on the JSE.”

Iqbal Survé

“Black businesses falling away from JSE”, PIC Inquiry told

Iqbal Survé highlighted the plight of several BEE-established companies – such as Nail and REAL – to demonstrate his point to the PIC inquiry panel. These businesses have ceased to exist, inadvertently leading to a decline in the number of black-owned companies registered with the Johannesburg Stock Exchange (JSE).

Leave a Reply

Your email address will not be published. Required fields are marked *