Johannesburg - Black economic empowerment (BEE) is not helping to reduce poverty and inequality, ANC treasurer general Mathews Phosa said on Thursday.
"Marikana taught us that... our [BEE] model is dysfunctional, and that we need to be creative when old order models of negotiation are discarded by the disenfranchised," Phosa said in a speech prepared for delivery in Johannesburg.
"If the miners at Marikana, and elsewhere, had a meaningful stake in the assets that they create, my view is that we would have had different and more positive outcomes."
He was referring to the shooting dead of 34 striking Lonmin platinum mine workers by the police in Marikana on August 16.
BEE had not made any meaningful contribution towards alleviating poverty and unemployment.
"What it did do is create an upper class of wealthy black investors who initially funded their wealth with debt through the acquisition of shareholding in successful white or international businesses."
Successful economic transformation needed black entrepreneurs who were not the beneficiaries of wealth created by others.
"The simple fact is, whether we are white or black, there is a dire need for broader participation in the wealth of this country in a way different from the current model," he said.
Wealth was never given away or successfully redistributed through force. The country's circumstances however showed that the wealth and ownership gap needed to be closed.
"If we hesitate in doing so, we will be the architects of our own demise."
He said South Africa's current policy drift and the public's opinion on these matters were not helping.
The time that elapsed between the crisis, the policy solution and its implementation did not contribute to social stability.
So,after 18 years of so called democratic government, this poes now realises that BEE has not worked - it has not added any value to the masses it was supposed to be benefiting. Only the top brass in the ANC, and them who are "connected"to decision makers and procurement officers have made any money. In fact, some of them made so much money they are now in the top 100 richest in the world, and probably make up 90% of the top richest in Africa. But the guy who sits at the end of the road every day looking for piece work has been doing that forever, and will never benefit from any BEE regulations.
Even more bewildering is that he felt he needed to make this statement -does he really think then around him are not aware of the fact that BEE has not worked?