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Disillusioned BEE companies take issue with state’s ‘double standards’

24 Feb 2004 - by Staff reporter
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Call for unified approach to government

ALAN PEAT

IS THE concept of black economic empowerment (BEE) more an ideal than an actuality?
It is, according to Nelda Plaatjies of Rolls Freight - her black-owned clearing and forwarding company established in Cape Town
18-months ago.
She expressed herself disillusioned with the response of big industry to BEE companies and also feels that government is all talk and no action.
“The government is pledging to help black entrepreneurship,” she said. “But effectively, help is only given to those with money, and ‘friends’ of the government.
“BEE is a myth for the man-in-the-street.”
Even the basic issue of credit for business - and even that backed by firm contracts - is fraught with difficulties, according to Plaatjies.
“The doors of financial institutions are not open, no matter what the principles of black empowerment would suggest.”
Equally dismissive of what BEE has so far achieved is Praveen Premlal, CEO of RTS Logistics - a 20-year old black-owned business.
“Take a good look at the (clearing and forwarding) industry,” he told FTW. “It is dominated by white-owned, foreign companies - and these supported by the SA government.”
BEE companies, should be given the opportunity to grow in the market. “Instead the foreign-based companies are being given the first opportunity,” says Premlal
This, he feels, is not benefiting the local economy to the extent it should be. “It is easy for the revenue to be channelled out of SA,” said Premlal. “Hence I say it is not benefiting the SA economy at all.”
Government departments choose to support “the so-called big boys” in the industry.
“It seems that SMMEs (small and medium-sized enterprises) like RTS - which has the potential for growth - find it impossible to get government business.
Premlal’s suggestion is that BEE companies need to stand together as a group and lobby the relevant government ministers.
This, he added, for these relevant authorities “to support and enhance” the BEE companies.
“They will generate the future economy in this country,” Premlal told FTW.
“My suggestion to government is that BEE companies - with the expertise and knowledge to grow the SA transport industry and economy - should be given the opportunities that were not given to them by the previous government.”

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