With negotiations still under way, the working group for the black economic empowerment (BEE) charter on information and communications technology (ICT) on Monday released its third draft, including much-anticipated detail regarding targets.
Speaking during the release of the third draft, chairperson of the ICT working group Dali Mpofu noted that the draft takes into account the full opinions of the ICT community and is one of the working group’s last steps towards the finalisation of the charter, scheduled for release in June.
The release is to be followed by a one-day indaba at Vodaworld on May 14, to allow final input on all issues from possible players who may have further contributions.
Attendants will include representatives from around the country who attended the working group’s series of workshops, mini summits and roadshows held in all nine provinces.
Mpofu contended that the third draft reflects a clear strategic vision and well-formulated policies, giving credence to the delay in discussions on targets during the consultative process.
Information gathered at the indaba will be assimilated before the final draft, allowing a window period of about 10 days for final submissions to the process.
“If the people of South Africa are to place their faith in the new charter, then we must ensure that they are included in its construction,” Mpofu added.
Asked how the problem of resistance by multinationals to sell equity to BEE players has been resolved, Mpofu said there has been an overwhelming view from different sectors that there should be no exemptions.
The working group has divided targets into two terms, namely mid-term and long-term targets.
In determining the degree of empowerment, points earned will enable enterprises to be classified in four categories.
According to the draft’s direct empowerment score, equity ownership should be between 25% to 35% in the mid-term and 25% to 51% in the long-term.
Mpofu added that no enterprise shall be exempted to perform or meet the transformation targets related to any of the core components or indicators of the charter as set out in the scoreboard.
“We are, of course, still holding talks with multinationals and this is a work in progress,” he said.
On fronting or window-dressing, Mpofu said this is one of the biggest enemies that needs to be confronted.
“I think the ICT BEE council should publish and constantly revise a clear comprehensive definition of fronting with specific examples of what is prohibited. The council should appoint among its members an anti-fronting subcommittee, which may co-opt specialists with expertise in the areas of company law, corporate finance and auditing expertise,” he added.
He said that one of the aims of the charter is that by 2010 all rural communities have access to some form of ICT services.
“Our ongoing concern in formulating the final policy and the eventual implementation of the charter is to build a dialogue which will give those groups in society most at risk of exclusion and alienation the chance to play a full role in shaping a technologically advanced South Africa,” Mpofu said. — I-Net Bridge