QUESTION $2$ SCENARIO $(30$ Marks$)$

You have been approached by a new potential client from India African Rail Pty Ltd that has just won a tender with government to build a new railway road from Rustenburg to Durban. This project will be worth more than R$50$m$.$ They had to agree on the following conditions in winning the tender:

$1.$ They will be $30\%$ Black woman owned

$2.$ They will give new opportunity to Black people that have a net value below R $10$m

$3.$ They will only need to raise $50\%$ of the value of the project

$4.$ They will have to develop a broad$-$based ownership scheme that will be registered in trust.

$5.$ A $\%$ of the shares must also belong to the local community in a non$-$profit organisation $($NPO$)$ that will also need to qualify for SED, the NPO must accommodate $30\%$ beneficiaries that are Zimbabwean.

$6.10\%$ of the cost of the shares of the BEE shareholders has been financed by a grant from government. The rest will have to be paid out from their profits.

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QUESTION $2$ QUESTIONS$$

Q$2\mathrm{.}1$ Provide this client with an explanation on how each of the above point $16$ will affect ownership $(8$ Marks$)$

Q$2\mathrm{.}2$ Provide the best possible option that will meet the condition of the contract and will be the

best profitable solution for the Indian shareholders? Show it in an organigram $(15$ Marks$)$

Q$2\mathrm{.}3$ Provide the score card to be presented to the tender committee with option you have decided

and all calculations $(7$ Marks$)$