Bidvest says Ramaphosa-linked company behind ‘no whites’ programme

Bidvest said a company linked to President Cyril Ramaphosa was behind its school bursary programme, which excludes white children from participation.

Bidvest is South Africa’s most successful services, trading, and distribution company with a diverse portfolio operating in numerous sectors.

It offers a range of services, including business services, trading and distribution, security, travel, logistics, financial services, and automotive retail.

Its subsidiaries include Adcock Ingram, Bidvest Protea Coin, Bidvest McCarthy, Waltons, Bidvest Steiner, Voltex, Bidvest Noonan, Plumblink, and Bidvest International Logistics.

Last week, it was criticised because its employee school bursary programme was only open to Black, Indian, and Coloured kids, excluding white children.

Trade union Solidarity chief executive, Dirk Hermann, described the bursary as racist as it excludes all white children.

“What Bidvest is doing for black children is noble, but what the company is doing to white children is racist,” he said.

Hermann wrote an open letter to Bidvest chief executive, Mpumi Madisa, arguing that it is “wrong in every aspect”.

“Exclusion based on race goes against the spirit of the agreement reached between Solidarity and the government under the supervision of the International Labour Organisation,” he said.

Julian Gwillim, the founder and chief executive of Aprio Strategic Communications, responded to Hermann on behalf of Bidvest.

He explained that the Bidvest Education Trust, previously known as the Dinatla Trust, is behind the bursary. The Dinatla Trust was established in 2003 as a CSI shareholding structure that formed part of Dinatla.

Dinatla was a broad-based black economic empowerment consortium that owned 35% of the Bidvest Group.

He said the Trust was formed for the sole purpose of uplifting historically disadvantaged individuals who are employees of the Bidvest Group.

President Cyril Ramaphosa linked to Dinatla Trust

Hermann has responded to the Bidvest letter, saying the company threw President Cyril Ramaphosa under the bus.

He said Bidvest indicated that it was not the origin of their discriminatory policy, but that it was started in a group in which Ramaphosa then had an interest.

“According to Bidvest, the black empowerment company Dinatla, in which Ramaphosa held a 15% stake, laid the foundation for the policy,” Hermann said.

Bidvest stated that Dinatla had already established the Dinatla Trust in 2003, from which the current race-based program originated.

According to the company, the Trust’s aim has always been to benefit black Bidvest employees and their children.

“Dinatla acquired a 34% stake in Bidvest, and Ramaphosa was appointed as chairperson of Bidvest in 2004,” Hermann said.

“He resigned in 2013, and thus, for nine years, he oversaw the race program that originated and was developed within his camp.”

Hermann’s comments are linked to the Dinatla consortium, which included prominent BEE partners such as WDB Investment Holdings and Bassap Investments.

Millennium Consolidated Investments (MCI), chaired by Ramaphosa, obtained a 15% stake in Dinatla. This gave it significant influence at Bidvest.

At the time, Ramaphosa said Dinatla has created significant value through its investment in Bidvest.

“MCI recognises that value and believes that its investment in Dinatla will forge a stronger partnership with one of South Africa’s leading industrial groups,” he said.

MCI later changed its name to the Shanduka Group. It was 30% owned by the Ramaphosa Family Trust in partnership with Standard Bank, Investec, and other individuals.