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Final charter draft allows 'special treatment'

By Tracy Burrows, ITWeb contributor.
Johannesburg, 08 Apr 2005

The SMME Forum believes the final draft of the ICT empowerment charter singles out some parties for special treatment.

The final draft of the charter was released yesterday after lengthy discussions over outstanding issues. These included multinationals' compliance and the effect of the charter on those sub-sectors of the industry that are already regulated by the Independent Communications Authority of SA.

The final draft allows multinationals to apply for certain exemptions and does away with timelines. It is also open to further "industry consultation", according to the ICT charter steering committee.

SA SMME Forum president Tebogo Khaas says the forum welcomes the draft's commitments to procurement from SMMEs.

While he has not had the opportunity to fully study the final draft, Khaas is concerned that there appears to be an equity clause that "at face value seems to protect and advance the interests of both Vodacom and Telkom".

"It would be a sad day for transformation in the ICT sector if only Vodacom and Telkom receive special and favourable terms when rigid equity requirements are placed before all in the sector, especially multinationals. This arrangement presupposes the fact that there is abundant capital available to fund equity stakes in excess of R7.5 billion in either Vodacom, Telkom or any other entity in the sector."

He says all entities, big or small, local or foreign, should be treated fairly and even-handedly.

Related stories:
Timelines scrapped from new charter
Consensus reached on draft empowerment charter
No ICT charter crisis, says Mpofu
ICT charter players deny derailment
ICT BEE charter on track

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