COSATU has condemned what it terms "elitist" Black Economic Empowerment deals in the steel industry. In a statement Cosatu said ArcelorMittal SA (Amsa) had "decided to get new BEE partners with strong links to some in government in the form of the Ayigobi Consortium, which now has a 21 percent stake in Amsa".
The deal was reported to be worth R9,1billion. "Amsa went on to also acquire Imperial Crown Trading (ICT), which was awarded prospecting rights for the 21,4percent of Kumba's Sishen mine by the Department of Mineral Resources in March 2010." The 21,4percent prospecting right granted to ICT was the same right Amsa had allowed to lapse.
Both Kumba and ICT applied to the department for the right ceded by Amsa when it missed the renewal deadline. On Tuesday the department announced its decision to uphold the award of prospecting rights to ICT. Cosatu said it agreed with the National Union of Metalworkers of SA that the deal "clearly appears to be a get-rich-quick scheme involving a so-called BEE consortium, Imperial Crown Trading". Cosatu said it would be increasingly difficult to dispel the perception that through this deal Amsa was buying political clout. "This deal will entrench Amsa dominance in the steel industry to the detriment of the economy and job creation."
Cosatu said current BEE policy was based on the view that empowerment meant giving millions of rands worth of shares to a few individuals, while the overwhelming black majority was left as disempowered. "Instead of making a rich elite minority even richer, BEE should benefit the workers, including the unemployed and poor communities."
Cosatu supported Numsa's call on the ANC, and the government, "to mandate the cabinet to intervene to reverse these seriously embarrassing deals".
Source: The Sowetan
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