In light of the massive outcry about the dismal performance of the Naspers/Media24 BBBEE scheme, Welkom Yizani , we sent questions to the Department of Trade and Industry (DTI) highlighting the concerns raised by ujuh.co.za readers and investors in the scheme.
Here follows the unedited questions and the block answer issued by the DTI. This answer can also be read with reference to the misfiring of the MTN Zakhele over-the-counter trading platform.
Investors in the Naspers Welkom Yizani BBBEE scheme are crying foul. Welkom Yizani shares are trading close to their subscription price of R10/share prompting cries by investors who allege they were robbed/misled. Some have sold at levels below entry price of R10. This is a replay of the Sasol Inzalo situation.
What does the DTI make of the situation? In your view what went wrong?
Some investors, among the 107 000 affected, are calling for intervention by the BBBEE Commission/DTI. Is the DTI planning to do anything about the situation?
Who regulates the BBBEE share trading market and what are the requirements?
What can be done to improve or avoid recurrence of this situation in future deals?
The Answer by The DTI
“There are similar instances that have previously been encountered, and to resolve such issues and the on-going concerns with issues of monitoring and evaluation on the implementation of the BBBEE Policy, the dti has in the BBBEE Bill introduced the BEE Commission, which will be established to deal with M&E issues. And that will enable the DTI to measure the success on the implementation of the BBBEE Policy which will also comprise of the BBBEE deals. We believe that this will assist in the avoidance of any recurrence of this situation and provide better protection to investors in B-BBEE schemes.
The DTI is not in a position to speculate on what went wrong with the deal until such time the detailed progress reports are obtained and detailed analysis is conducted.
We have conducted an analysis on the impact of the BEE transactions and we are still busy with the analysis, whose results will shed some light on some challenges. So as the DTI we are concerned as this is the serious area pertaining to the sustainability of BEE transactions and impact; hence the above stated amendments.”