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MEDIA RELEASES
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The BEE Codes of Good Practice The Codes of Good Practice on Broad-Based Black Economic Empowerment were gazetted on 09/02/07 in Government Gazette Nos 29617 (Main Codes), 29610 (Financial Sector Charter) and 29616 (Construction Sector Charter). Please go to http://www.dti.gov.za/bee/beecodes.htm to download. For more information please contact: |
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ICT BEE Charter Finalisation Soon? The Industry Associations were instigators of the BEE Charter in 2002, working together with SACOB. It was apparent to us in industry that BEE was going to happen, and is the way with industry, we recognised the need to change before change was forced upon us. Adapting to market conditions has always been the mark of a successful company. So it was that the ICT Charter was born, and grew to a certain maturity as an industry document, supported (one thought) by Government. In retrospect, it was at that point that industry had reached a consensus, or at least an uneasy truce, and that we could perhaps have lobbied Government to accept the Charter as it was. However, Government felt it wise to gain acceptance from other sectors of Society and to therefore obtain agreement via the NEDLAC process. This process added many months of discussions to the Charter process, wearing out many of the Committee in the process. In the meantime, the Codes of Good Practice CoGP had been issued by the dti, who freely admitted that they were based in part on the ICT Charter. It then became apparent that the Charters would not become legalized before the CoGP were finalized. Comments on the Codes were invited by the dti, and the Charter Steering Committee – by then reduced to a handful of stalwarts – duly submitted a response in February 2006. At the time a ‘final version’ was promised by dti within 2 or 3 months. As announced early in September this year, the Codes are now ready to go to Cabinet for approval. They will apparently be issued in three parts: the Codes themselves; a simplified version for implementation; and a “publicity media” version. This indicates that the complexity will be substantial. This puts a time line of approximately 2 months before final issue, provided that Cabinet does not return the document unsigned for further changes. As dti have taken into account the +-180 submissions, including that of the EIF, thereby possibly introducing substantive changes, it will be interesting to see whether there will be a further period for public comment before gazetting the Codes. If so, this will add a further 2 months to the delay, plus the time taken to absorb the public comments, and then finally issue the Gazette to pass the Codes into law. Even then, the indications are that Charters, such as the ICT Charter, will have to be revisited to bring them into line with the Codes, and presumably (although this has not been clearly stated anywhere and may be a point of contention) to allow some leeway for industry specifics. So again we see delays before we can really regard the ICT Charter as being implementable. Meanwhile there are already several companies offering their services to companies ‘to assist you in meeting the BEE requirements of the dti’. As an industry we need to be vigilant: we must not let last minute changes slip though unnoticed; we must not allow our members to be misled by self styled experts in BEE consultancy; we must urge Government to speed up the process to remove uncertainties as soon as possible; and, most importantly, unite as an industry to speak with one voice to ensure that BEE means growth and jobs, not enrichment of the few. For more information please contact: |
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ICT
working group lifts final curtain on ICT Draft Charter On Friday 14 May approximately 400, ICT Sector Stakeholders met at Vodaworld Midrand in what was billed as the last in a long series of consultative meetings called by the ICT Charter Working Group since the launch of the process in June of 2003. This meeting was convened on Monday 10 May 200, following the release of the Working Group’s Third Working Draft of the proposed ICT Charter. The third draft for the first time contained proposed target ranges for the various BEE indicators namely Ownership, Management, Employment Equity, Skills Development, Affirmative Procurement, Access to ICT and Corporate Social Investment. The meeting was opened with strong statements in support of the uniquely consultative and inclusive process. These came in the form of the keynote address made by Minister of Communications, Dr Ivy Matsepe-Casaburri as well as her newly appointed Deputy Minister Roy Padayachie, who was making his first public appearance since being recently appointed by President Mbeki. The Minister pointed out that the meeting was taking place exactly one month since the April 14 democratic elections and reminded delegates that social and economic transformation was high on the agenda of the newly re-elected government. She also appealed to business leaders to complement their profit taking with a commitment to redress the problems of the past. “Anybody who derives profits from the South African economy accordingly, has a corresponding duty to assist with meeting our peculiar economic challenges. This will contribute to create a climate of political and economic stability which will ensure the continuation of business activity,” added Dr Matsepe-Casaburri. Stakeholders were very complimentary of the process designed by the Working Group. Substantially the contents of the Third Working Draft received the thumbs up with a few minor amendments offered. Two thirds of the days’ proceedings were taken up by a break-away group and a long plenary session going through the contents of the draft with a fine toothcomb. Dali Mpofu,
Chairperson of the Working Group said, “It is no exaggeration
to describe this meeting as a turning point in the process thus
far. The much anticipated revolt by some multinational companies
over the issue of exemptions from selling equity to black shareholders,
did not materialise. Instead delegates closed ranks in support
of the process and the deadlock breaking mechanisms proposed by
the Working Group.” The Working Group will spend the rest of the month assessing new inputs until the extended closing date of 31 May 2004. Thereafter an assessment will be made as to whether or not there will be a need to extend the 25 June projected date for the finalisation of negotiations and drafting. Some foreign companies originating from the United States have previously raised the issue of “equity equivalents”. This term refers to alternative forms of BEE investments in the place of selling shareholding to black investors as require in the Broad-based Black Economic Empowerment Act. The majority of stakeholders, both black and white (and including some multinationals), have rejected this suggestion, stating emphatically that there should be no special exemption for foreign based companies. The Working Group has long stated that this matter would be subjected to a separate negotiation process aimed at reaching a solution. A letter was received last week from the American Chamber of Commerce effectively accepting this general invitation to the negotiation table. The Working group has now formally and positively responded to this gesture by means of a written reply. Arrangements are currently underway to prepare for and hold such a meeting within the next two weeks. For
more information please contact: |
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Counting
down to the final ICT Draft Charter The third draft of the ICT Draft Charter, including the much-anticipated targets for black economic empowerment (BEE) was released today. The third draft takes into account the full opinions of the ICT community and is one of the ICT Working Group’s (ICTWG) last steps towards the finalisation of the Charter, which is scheduled to be released in June 2004. The release is to be followed by a one-day Indaba at Vodaworld on Friday, 14 May to allow a final input on all issues from any possible players who may still feel excluded or have a further contribution. Attendants will include representatives from around the country who attended the Working Group’s series of workshops, mini-summits and “road-shows” that were held in all nine national provinces. The timing of the release purposefully allows participants to digest the information on BEE targets and other burning issues so they can prepare for the Indaba. By publishing three updates or drafts of the ongoing process the Working Group allowed for maximum participation and optimal transparency. The third draft reflects a clear strategic vision and well-formulated policies, giving credence to the delay of the discussion of targets during the consultative process. Information gathered at the Indaba will be assimilated before the final Draft – allowing a window period of about ten days for final submissions to the process. The introduction of the ICT Charter is a historical step to which the Working Group has committed itself from the beginning. It was essential that the community be part of the drafting 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”, says Dali Mpofu, Chairperson of the Working Group. “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”, he continues. “It is our view that the targets are generally achievable, although somewhat robust and forward looking. There are still a few loose ends to be tied up with some of the stakeholders, but we are finding each other with every day that passes. “We look forward to some heated debate on Friday”, concludes Mpofu. For
more information please contact: |
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The
ICT Charter - Advancing to the next level The Information and Communications Technology Empowerment Charter Working Group (ICTWG) announced the release of the Second Draft ICT-E Charter today. This announcement comes after an exhaustive research process over the course of April and May, mainly consisting of a national Road Show programme which culminated in an enthusiastic discussion of over 100 participants in Nelspruit on the 6th April. The high calibre audiences in all the provinces comprised of the principal persons involved in Information Communication Technology including small micro and medium enterprises (SMME’s), government organisations, parastatals, learning institutions and industry associations. By giving all the relevant stakeholders the opportunity to hear first hand the ideas in and behind the Draft Charter in an open forum, the workshops were able to elicit an in-depth debate from the participants to give their input. “We’ve had extremely positive responses to the workshops, thereby showcasing the levels of interest and legitimacy of the entire process and vindicating our decision to take the process to the people,” says Dali Mpofu, Chairperson of the ICT Working Group. Challenges that emerged from the working sessions include concerns regarding access to funding by black businesses in order to acquire equity in ICT enterprises. Venture capital markets available for investment should be broadened to include prospective entrepreneurial black-controlled enterprises. It was submitted that State Owned Enterprises (SOE’s) when wholly owned by government, should not be regarded as black empowered enterprises. However, if partially owned by government, the balance of the equity in the hands of black people shall determine the extent to which such an SOE is empowered. Issues that will be redressed in the Final Charter include a lack of access to funding and unfavourable dividend policies. Proposals regarding preferential procurement, management control and skills and enterprise development will also be deliberated in the conclusion phase of the final version. A serious concern that materialised from the road shows is the issue of indirect ownership, whose role needs to be clarified as it is allegedly open to abuse. It has been argued that ownership by entities such as the Public Investment Commission or other pension funds not be considered for BEE purposes. However, a counter argument has been advanced that where such equity is held on behalf of employees in a form of vehicles such as pension funds investment companies, affiliated nominee BEE shareholding need to be taken into account for purposes of BEE. This issue is currently being debated by the Task Team. The second and third drafts, taking into account comments received, will allow for further updates to take place until early May, culminating in a mini Summit in Gauteng on the 6th May. “The Charter’s eventual issue will take into account the full opinions of the ICT community”, concludes Mpofu. “Any issues left out needs to be brought to the ICT Working Group’s attention as a matter of urgency.” The projected date to launch the Final Charter is 25 June 2004. For more information, please contact Bongiwe Moeli or Bronwyn Scharneck on (011) 803 7456 or email at info@ictcharter.org.za |
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The
ICT Empowerment group Congratulates the winner! Mpofu named IT Personality of the Year
A lawyer by education and by practice (a former Labour Court judge and an ANC lawyer), Dali Mpofu was exposed to ICT only recently, through his post in Altron and through his presidency of the Electronic Industry Association. He made his ICT mark by uniting and mobilising the complex ICT industry around black economic empowerment and by driving the BEE ICT Charter process. For Dali, everything is about justice – social or economic. “I consider myself to be an activist for economic justice,” he says. “I see that rule carrying me well into the future.” |
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An
ICT Milestone SACF
President Eddie Funde has been working on the programme for the
Indaba. “On the first day, 16th September, we will commence
with a plenary session, taking inputs from industry luminaries”
he remarks, “but we will then break out into smaller discussion
groups, which will workshop the issues around BEE. A gala evening,
to which the Minister of Communications has been invited, will
provide opportunities to network and discuss the day’s proceedings,
whilst the second day, on the 17th, will see the discussion groups
consolidating and reporting back to the plenary”. The
Indaba takes place on the 16th and 17th September at Sandton Convention
Centre, Gauteng. IISA President, Adrian Schofield added, “To
ensure broad based participation we have continued to encourage
all interested parties to record their comments onto our website.
Would-be attendees can approach their industry associations for
invitations, and/or visit the web site www.ictcharter.org.za
e-mail info@ictcharter.org.za
. ICT
EMPOWERMENT CHARTER WORKING GROUP |
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| ICT
sector divided over charter Charter for the ICT sector Following the adoption and implementation of the proposed broad-based socio-economic empowerment charter for the South African mining industry, which brought about a lot of debate, the drafting of similar charters for other business sectors seemed imminent. The difference, however, lay in the proposal from government that various sector charters should be industry-driven, while government's attention would be turned to developing a global charter, with a generic effect on all industries. The broad variety and complexity of the ICT sector, however, demands that its own charter should be developed and, because of these factors, the charter would have to be strongly industry-driven. It was recognised in the initial stages, that input would have to be made by many different stakeholders, all of whom would want the ICT Sector Charter to take their respective needs and viewpoints into account. The obvious starting place would lie with the various organisations and associations working within the ICT sector and they have formed a working group known as the ICT EMPOWERMENT CHARTER WORKING GROUP. Organisations making regular input at these meetings include the Black IT Forum (BITF), the Electronic Industries Federation (EIF), the Computer Society of South Africa (CSSA), The SA Communications Forum (SACF), Information Industry South Africa (IISA) and SACOB. Information from the working group meetings is regularly forwarded to a large number of important corporates, including IT and telecommunication companies, finance houses, and SACOB Chambers and input is invited from them. It is important to gain government's cooperation and both the DoC and DTI are kept regularly informed of the task group's progress. The ICT Empowerment Charter Working Group has drawn up a framework for discussion. The development of the document is ongoing and it is aimed to provide a final draft for use at a two-day indaba to be held on 16 and 17 September. The purpose is to invite as wide an audience as possible to participate in and make input into the charter document which, it is planned, will be made available in final form by the end of 2003 for submission to government. At a press briefing held at 11h30 on 25 June at the Park Hyatt Hotel in Rosebank, the discussion framework was introduced and further plans of development outlined. The Working Group intends that this session launched the opportunity for the broad participation of the sector's stakeholders in the development of this important agreement. For further information and an opportunity to record one's comments and input, visit our website www.ictcharter.org.za.
Issued
by Nicole Sekelani - CSSA |
