The decision by New Africa Investments Limited (Nail) to unbundle and eventually disappear this week should not be seen as a setback for black empowerment. On the contrary, it represents a fundamental shift towards a more authentic power in the economy by black executives.
The decision closes the door on an empowerment strategy that ironically used the questionable family control share mechanisms once favoured by white- controlled conglomerates to give themselves immense power.
At its inception, Nail adopted a system of “N shares” – low voting shares – which were bought by financial institutions. The purpose behind diluting the voting value of the “N shares” was so that black shareholders of normal shares would have comparatively strong control, with a relatively small equity stake.
The “N share” went awry when financial institutions grew frustrated at their lack of voting power and wary of Nail’s direction as it became an unfocused conglomerate.
The move this week is designed to kill off these convoluted shareholder structures. Instead, the empowerment sought by the company will focus on the operational control of one company, Metropolitan Life.
Nail’s restructuring plan boils down to selling its non-core assets, and unbundling its major investments. It will eventually be absorbed into Metropolitan Life, in which it has a 51% stake. Nail’s days as a sprawling conglomerate will end. It will become New Africa Capital, which will have a real say in the running of Metropolitan Life.
The “N share” scheme, adopted by Nail founders Ntatho Motlana and Jonty Sandler, was the only option available for the first wave of black empowerment deals. It was hatched at a time when blacks had to be given and be seen to be given a stake in the Johannesburg Stock Exchange. In the years that have followed, however, a generation of hands-on black managers have emerged, who must now take real control of the economy.
On announcing the move, Nail’s chief, Dikgang Moseneke, said that the real challenge for management at Nail had been to be bold enough to give up what they could not manage. It was a demonstration of candour reminiscent of Moseneke’s impressive handling of the Nail share option debacle in April this year. He admitted at the time that Nail had learned its lesson from the fallout of the proposed award of R136-million in share options to its four top directors.
Nail’s change of course will shift the emphasis in black empowerment from artificial, expedient measures to boost black share ownership towards hands-on control of corporations.
Off with their …
Much has been made of the fact that among the sentencing options for rapists that the Law Commission is investigating is that of chemical castration. Even anti- rape groups are wary of a practice that on the surface appears to undermine the values and rights embodied in our Constitution. The main argument against chemical castration is that this would be a cruel and inhuman punishment.
No doubt the sense of discomfort has been fanned by the Pan Africanist Congress’s backing of the measure, given the Reverend Stanley Mogoba’s past support for chopping things off.
But we believe the idea has serious merit. Chemical castration is an injection that causes no side effects, but lessens sexual desire.
It is not cruel and inhuman to stop a person from raping – unless we are more concerned about the rapist than those he rapes. And if rape is about power, as some rape organisations say, then let’s remove the rapist’s power from where it counts.
If anything is cruel and inhuman, it is the act of rape itself. For the victims, the effects last not just for the hours of the rape but for years to come as they try to adjust to the fears, traumas and insecurities it leaves them with.
The very fact that even after chemical castration many rapists will rape again shows what we all know – that most rape is serial and that no rapist stops.
We have to create a disabling climate for rape through a variety of measures. These would obviously include intensified policing, effective prosecutions and a sexual offences register.
However, we as a society need to impede and stop the rapist in as many ways as we can. For that there must be a significant deterrent, a fundamental principle in any criminal justice system.
Seventy-five per cent of rape in South Africa is gang rape. This is sport for groups of men who prey on women and children. The war against them needs to be psychological, as well as more effective and tighter criminal justice.
THE RAPIST WHO RAPES FOR SPORT AGAIN AND AGAIN REGARDS IT AS AN ACTIVITY SLIGHTLY MORE ELEVATED THAN TENPIN BOWLING OR SOCCER ON A SUNDAY. FOR HIM, RAPE IS FUN. HE MIGHT WELL THINK TWICE IF HE KNOWS THAT HE FACES CHEMICAL CASTRATION.