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Mooikloof opposition is not about entitlement – Saibpp president

It’s about the serious lack of transformation in the real estate sector.
Tholo Makhaola, president of the South African Institute of Black Property Practitioners. Image: Supplied

The opposition of the South African Institute of Black Property Practitioners (Saibpp) to the backing by President Cyril Ramaphosa and national government of the multi-billion-rand Mooikloof Mega City housing development in Pretoria has nothing to do with entitlement, according to the president of the organisation Tholo Makhaola.

“Some are saying that our outcry is about a sense of entitlement, claiming that we just want a piece of the pie – a piece of this mega project … This is simply not the case. The fact is that there is a serious lack of transformation in the property sector,” he tells Moneyweb.

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Read: Infrastructure a key part of economic recovery plan – Ramaphosa

“We don’t want black people to continue to be relegated to just being consumers of such projects or construction workers; but we want black businesses to benefit from the value chain too. As Saibpp, we have an issue with the Presidency and national government supporting such a project, which doesn’t seem to have measurable BEE [Black Economic Empowerment] transformation targets linked to it,” he adds.

JSE-listed Balwin Properties is behind the Mooikloof Mega City development, which will see some 50 000 inclusionary housing units being built on privately-owned land east of Pretoria over the next 10 to 15 years. The project was officially launched by Ramaphosa and other senior government officials, together with Balwin CEO Steve Brookes, on Sunday.

Empowerment components lacking

Makhaola says while he understands that the project is driven by private sector corporate Balwin Properties, the fact that the group is JSE-listed and government is supporting the development with R1.4 billion in bulk infrastructure should have meant there were more stringent empowerment components.

With Mooikloof Mega City included as part of government’s Sustainable Infrastructure Development System (Sids) targeted list of projects, he reiterated calls by Saibpp that all companies participating in the Sids programme must be able to produce at least a Level 2 Broad-based BEE (B-BBEE) certificate.

“We want to see meaningful transformation. If companies participating in the Sids programme don’t have a Level 2 rating, such companies need to demonstrate how they intend to partner with or undertake a joint venture [with an empowered group] to ensure meaningful economic and skills transfer during and after the project,” he says.

Other empowerment features Saibpp wants included in the Sids programme include:

  • Participating companies committing to procuring 40% of all materials and professional services from South African black- and women-owned companies; and
  • That granting of approvals and development rights by local authorities must be contingent on the above conditions being met as well as on participating companies demonstrating a fully transformed professional service provider base and company structure.

Balwin Properties, South Africa’s largest sectional-title residential developer, is currently a “non-compliant contributor to B-BBEE” in terms of its latest BEE certificate.

However, its black ownership is reflected as being 13.14%, of which 6.15% is owned by black women.

“If one looks at property companies like Balwin, most are white-owned and managed, with most of their professional team and value chain also being white,” says Makhaola.

Transformation ‘frustratingly slow’

“We agree with the Property Sector Charter Council [PSCC] that transformation in the sector is frustratingly slow. Property companies are not sticking to their own BEE targets and there are currently no punitive measures against these companies,” he notes.

PSCC CEO Portia Tau-Sekati says she supports Saibpp’s call for mega projects endorsed by government, such as Mooikloof Mega City, to have BEE transformation targets.

“Transformation is not happening fast enough in the property industry … Major investments, job creation and housing are very important, but I believe we still can find a balance by also making sure such projects include a transformation plan,” she adds.

“This is not just about Balwin Properties, however, as far as I know, the group is not compliant in terms of the Property Sector Charter … The residential property sector, including estate agencies, is performing worse than the commercial and listed property sectors when it comes to transformation,” says Tau-Sekati.

Listen to Nompu Siziba’s interview with Tholo Makhaola:

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COMMENTS   32

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Why always this gimme attitude – be entrepreneurial

Anyone can purchase Balwin shares on the JSE and (hopefully) watch your capital grow. If you’re smart, you’ll get all the benefits without lifting a finger. Sound familiar?

Need capital to buy shares bro, not everyone’s a rich kid that mommy and daddy gave them everything

@HitchesGhost: But anyone with an income can spend less than he earns and build savings for investment. That’s what the rich kids’ mommy and daddy probably did.

Not a good idea. A “partnership” with criminals is doomed to fail.
Perhaps someone can compile a shortlist of successful mega projects that these clowns have completed on-time and within budget?
It is already attracting the carrion feeders and in no time will be bogged down in legal wrangling and extortion by the various “business” forums.
Construction is a poor business model to begin with, add the government as a partner and it is uninvestable.

What is unfortunately familiar these days is that shares come for free and all benefits come without lifting a finger. That of course only applies to the privileged – or is it the underprivileged? – or is it disadvantaged? Advantaged? Sorry, all this newspeak, it’s all so confusing. Guess I’m not woke enough.

BBE = ENTITLEMENT

+ poor quality + looting

I think that Cyrils has realised how on the brink the SA Economy is and therefore they cannot afford to have any more money wasted or stolen through BEE.

Maybe the time for honest, effective and efficient delivery has come, finally.

It is an economic principle. Money has to follow value creating projects.

I’ll wager that Tholo Makhaola is not much of an estate agent.

Correction “Mr President” > IT IS ALL ABOUT ENTITLEMENT !!!!

Any venture that does not include the majority is not sustainable.

And yes there was a donation of some R30-million as exposed by Tony Leon that turned into a R30-billion venture. Not sustainable. We should expecting some commission of Inquiry and some arrest when the President’s term nears it’s end. Not so wise.

When the “suggestion” is that procurement should be done the good old BEE way where everything except quality and price is priority you just know the “Transformation” talked about is just a word used to sugarcoat corruption and theft.

What else? Is “Transformation” about charity? If it is Tholo must contact the salvation army.

How can you build a country when your first objective is to “Transform” it into the gutter?????

Just another trough filled by the fast diminishing taxpayer base…..

Strange. I have never seen a white brick layer or whites building a house. This project will give work to everybody. From the guy that made the bricks to the guy that made the doors. And most will be black, getting paid, getting work. What is wrong with that?

Mr.Makhaola, If you want pie go bake your own pie. Leave other people’s pies alone.

The name of his institute already shouts entitlement. I am certain an institute for white property practitioners will be investigated by the Human Rights Commission and found discriminatory. By the nature of the points system used for BEE, it raises the cost of any project by up to 20%. No developer can afford that. Maybe he should use the power of his institute to do their own development and make a contribution to save the economy, instead of crying like a baby about someone else’s initiative.

A private company cannot afford a Medupi disaster…

BBBEE has caused a huge flight of both local and international money out of South Africa. The view of people like Tholo that we live in a vacuum outside international capital and investment markets and that investors will continue to accept the inefficiency that BBBEE causes in its current form is what has caused our economy to fail.
A format has to be found where existing wealth and capital (call it white if you want) is REWARDED for its investment decisions not held up as a pariah.
People like Tholo believe its wrong for “white capital” to do well but “black capital” would have grown far faster if BBBEE had been implemented as a both sides can win approach.
So what will now happen is that “white capital” and international investors will go and invest in Poland or Australia and leave “black capital” to rush around doing unsustainable deals in an ever decreasing little pond.
Not sustainable…….but hey if you’re politically connected then you’ll get your turn at the trough…don’t worry about the overall economy and millions of unemployed.
Balwin…well done, brave and possibly foolhardy investment with this lot commenting from the side. An investment into Poland or similar country who would have welcomed your capital would have been safer….

The slave mentality, also known as the sense of entitlement or the victim attitude, is characteristic of the comunalist mindset. BEE is a manifestation of this phenomenon. When this attitude infiltrates the legislator, then the voter will use his power to make laws to plunder everybody else. This is how the law itself becomes a tool to legalise plunder. There is no equality before the law in such a situation. The law enables and protects the tyranny of the plundering hordes.

SA has always had legalized ‘job reservations’ and specific ‘procurement beneficiaries’ based on the colour of ones skin. I guess white people also had “slave mentality” once upon a time… and have selective amnesia about it today

You should have told that to my mom and dad. Neither could afford to attend university. My dad worked as a boilermaker on the mines. So much for your so-called procurement beneficiaries.

PleaseSaveSA, you are right insofar as the apartheid government abused its power with the forced relocation of citizens. This was a shameful infringement of property rights and a crime against citizens. I totally support financial compensation in this regard.

Playing the victim card is the loser’s way to stay in the game. Every entrepreneur pays a penalty for the privilege of serving the consumer. This penalty is called taxes. Society benefits from the products, taxes and employment opportunities that are provided by accountable individualists who act responsibily. As such, entrepreneurs are the opposite of people with the slave mentality.

@Tholo Makhaola) – DUde, its Time to catch a wake up. Either you grow this country with the people you have or you watch them leave. … and then you will be paying more for consultants. The truth is you just dont have the skills to do the basics. You might pride yourself that the world cup was a success…. Most of the stadiums were built with overseas skills (the premium we all had to pay)

Please come up with better solutions to the countries problems other than transformation. 26 years on and the ANC destroyed the country thus far, enriched a few…. have you seen the fancy cars bought with the loot (call it transformation capital)

The track record of BEE show enriching a few politically connected securing over priced tenders that run way over budget at no cosequences. Should government agree to this demand the tender accepted must go to the lowest bidder the only qualify on a proven record it is no new company that is simply created a short time before the tenders are awarded and no politically connected ANC officials. This should be on a total transparent basis over the project. Any company that fails to comply with set standards must forfeit the tender at the earliest.

It begs the question of why this government-backed mega-project by a single developer requires real estate agents at all taking 5%-odd commission for sales. Some free SABC advertising, submit applications at the post office, and use some thumb-twiddling public servants in the department of human settlements to process application, and you’re done. Of course all 50,000 new homeowners will have sterling credit records even during lockdown to access finance, but that’s the bank’s issue.

The 2 chief honchoes of this company shifted most of their shares into private companies and family trusts last year????? Worth about half the market cap of the company..

How very convenient and private hey? Nobody would be any the wiser should their be a bit of hanky panky going on. Should that be the case look right to the top.

Let me sketch a scenario. Conceive a “mega project”; get political buy in and/or support (easy rezoning and plan approval?) and infrastructure provision (R1,4bn?). These are things a smaller developer will never get – rather they must add to existing infrastructure themselves at their own cost.

Now maybe a nod and wink, donations to the ANC Party, a promise here and there to ANC elites, all grease to the wheels and fanfare in the press. Money is borrowed on the strength of all this and the development company pay themselves a handsome management fee immediately and on an ongoing basis. After which they could not care what happens, BEE, EWC whatever. Goodnight Eileen.

Which project with government backing was successful? Eskom? Spoornet? Denel? Provincial? Local Municipalities? None. This is just again where one or more of ANC cadres will benefit! Check the project cost / quality / standard / value and time over run! And then again investigations / commissions / audit with delayed outcomes and corrective action. That is the ANC South Africa of ‘progressive greed racism and fraud’

Are the developers getting R1,400 million worth of infrastructure free gratis pasella from taxpayers???

That is offensive. How is a smaller developer in that area supposed to compete when the smaller guy must cover roads, water, electricity and sewerage from his own pocket?

Ah the good old bee gimme club who won’t invest their own capital and “ black excellence”, but want a part of someone else’s entrepreneurship, for nothing just because of ….? ….do grow up, sunshine!

What is a “ Black Property Practitioner”, Mr Makhaola?

Sounds touch bigoted, ne’?

End of comments.

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