Archive for July 6th, 2009
I’ve just seen a generic scorecard, verified by an accredited agency that shows:
Ownership: 20.54 points (35.4% black ownership)
Employment equity: 1.83
Skills Development: 1.19
Enterprise Development: 7.22
Socio Economic Development: 0.00
They are a level 8.
There can be many interpretations but this looks very suspect.
35% black ownership and almost zero management!
They earned 20.54 points so by definition the black partner (or ownership scheme) has earned full net value their shares . Why would someone invest and pay some proportion for their shares and not ask for more than one non-executive seat on the board? Why would they not make some effort to get the board to transform? Why would they not make an effort to improve employment equity.
It is possible that the company is not fronting, and has made an effort to involve staff, but even then level 8 for a 35% black owned company is not very good.