Woolies’ Susman missing the point on equity, BEE

Woolworths chairman Simon Susman. Photo: Leon Nicholas

Woolworths chairman Simon Susman. Photo: Leon Nicholas

Published Oct 3, 2014

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Those living in glass houses shouldn’t throw stones, so the saying goes. Simon Susman, Woolworths chairman, has interesting things to say in the group’s annual report regarding South Africa’s economy, BEE and employment equity.

He says the “remarkable” progress of the first two post-apartheid administrations is coming under threat.

“That ‘economic and social miracle’ as it became known, was able to radically reduce poverty, deliver well-balanced fiscal disciplines and encourage private investment… we are now in danger of turning that tide backwards and are beginning to seriously constrain the growth of the economy.”

Susman adds that empowerment and national transformation were ideals to which Woolworths had contributed passionately and which all forward-looking South Africans shared – but sacrificing jobs and economic growth to achieve this aim would not work.

But what will work Susman does not say.

Seeking to discredit BEE and employment equity is disingenuous on his part, for Woolworths is a leading beneficiary. The retail chain targets the middle class, which has risen from the black community like a phoenix, thanks to government policies.

However, Susman has nothing to show of the contribution made by Woolworths in terms of the number of blacks in top and executive positions in the company.

Gwede Mantashe, secretary-general of the ANC, said on Wednesday the “unpatriotic” private sector, holding a combined R500 billion, is not investing in the economy, hurting plans to transform the economy.

While he is misguided in that notion because the economy faces a plethora of challenges, one might have to concur when he says: “One thing that annoys me is when people see a successful black person, they draw the conclusion that that person is corrupt and is linked to the ANC.

“BEE in itself is a success. It results in the redistribution of wealth but we resent it because we resent black success.”

Susman must now say what he does see as the best alternative to transformation.

Wiseman Khuzwayo

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