SAA has to say to whom it wants to give a 30% share of a Bidvest subsidiary

21 July 2015

The request of SAA to Bidvest to transfer the 30% share of a contract which it has with a Bidvest subsidiary which is responsible for grooming, toilet and water services is very suspect and in addition a contravention of the Black Economic Empowerment Act and Codes, Adv. Anton Alberts, the FF Plus’ parliamentary spokesperson on Transport says (see Moneyweb report).

According to a report in City Press the past weekend, Bidvest made it clear that its subsidiary BidAir Services already obtained black ownership of 63,42% and that black women have a 24,85% stake in the company.

Adv. Alberts says it exceeds the prescribed BEE requirements by far. The requirements include, amongst others, that businesses with a turn-over of between R10 and R50 million should have at least 25% black ownership.

“The FF Plus will be approaching the Commission for Broad Based Black Economic Empowerment (BBBEE) to investigate a possible contravention of the BEE Act and Codes. The SAA wants to force Bidvest to transfer nearly the whole of its subsidiary to black owners.

“It appears as if Yakhe Kwinana, the non-executive director of SAA, is holding a knife to the throat of Bidvest as Bidvest’s future participation in SAA tenders could be put in jeopardy if it should refuse to transfer the 30% of the contract.

“Kwinana will have to explain who the empowerment company is and what ties he has with the company,” Adv. Alberts said.

Statement issued by Adv. Anton Alberts, FF Plus parliamentary spokesperson: Transport, July 21 2015