THE black economic empowerment (BEE) bailout debate between Lot Ndlovu, the former president of the Black Management Forum (BMF), and the incumbent president, Jimmy Manyi, reared its head again on Friday, widening the rift between the two leaders.
Ndlovu, who is the leader of the concerned BMF committee that called for Manyi's head because of the pronouncements he has made in the past, on Friday repeated his concerns about Manyi's comments on BEE bailouts.
This was on the second and final day of the BMF's annual conference.
It transpired that the two leaders were still seriously at odds with each other.
This is despite Manyi's claims last week that members of the concerned committee had failed to pass a motion of no confidence in him.
Last week, Ndlovu told the media that Manyi had called for BEE bailouts to be avoided because leaders of these entities had entered into the deals with their eyes open and those BEE companies should be left to collapse.
But Ndlovu said that BEE bailouts were necessary.
"The issue of bailouts is not a small matter. Let us not play games. We need to engage properly on this matter," said Ndlovu, adding that bailouts had happened because of one of the most severe recessions the world had ever seen.
When the concerned BMF committee first called for Manyi's sacking it put one of the reasons for this move to be his statements on BEE bailouts and the criticism levelled at the appointment of Futhi Mthoba as the leader of Business Unity South Africa.
But Manyi retaliated on the bailouts issue on Friday, saying his statement had to be seen in the context of the seven elements of the codes of good practice on broad-based BEE, which include economic development and procurement.
"If bailouts are aimed at rescuing the bigger guys what about the smaller businesses which survive on tenders? These people do also get hit by the recession. Who bails these guys out?" asked Manyi.
"Bailouts should go right across and benefit all at once and not only the big guys."
But it turns out that the debate could be unnecessary because not many BEE deals are under water at this stage and needing the government's financial assistance.
Chief executive of KIO Advisory Services Duma Gqubule said that among the top 40 listed companies only one BEE transaction needed bailing out. He declined to name the company, saying the company was his client.
"About 70 percent of the BEE transactions do not need a bailout. Besides, there are few black people on the top 40," said Gqubule.
On Friday Business Report learnt that the concerned group tried to raise its concerns at the closed annual general meeting but was told that it should follow due process.
It looks like the concerned group's struggle for the removal of Manyi is not over yet. It is waiting for the outcome of investigations into the group's claims. A task team has been appointed to look into the concerned group's claims.