Johannesburg, 19 Mar 2008
Telecommunications company Itec Tiyende has elected iKamva Labantu, a Cape Town-based non-profit organisation (NPO), as its new broad-based black economic empowerment (BEE) partner.
This follows the Johannesburg-based company's split with Tiyende, a prominent BEE partnership headed by Max and Shaka Sisulu - respectively, son and grandson of struggle stalwart Walter Sisulu.
Itec Tiyende director Simbo Ntshinka says he has only ever dealt with Shaka Sisulu and the relationship with him has been terminated.
What's more, he maintains: "There were no economic benefits that could be realised over time as envisaged [while] the relationship was in place. This was unfortunate."
Sisulu, on the other hand, says Tiyende's executives, including himself, were at the forefront of building Itec Tiyende. He maintains the newly-formed entity had trouble grasping the fact that telecommunication investments show slow returns in the short-term, but greater value in the long-run.
Ntshinka says iKamva Labantu has been selected as the company's new BEE partner, something the company views as "a far better, and value-enhancing transaction, to the original transaction with Shaka Sisulu", according to Ntshinka.
iKamva Labantu's vision is to assist in building sustainable community-based organisations that focus on primary healthcare, education and skills development, food security and enterprise development, as well as land and buildings.
Ntshinka says the NPO's staff are "quite business-oriented people" and he does not see any reason why their role as BEE partner should be problematic.
According to him, a representative of iKamva Labantu will serve on the Itec Tiyende board and the NPO will be engaged in the running of the business.
Neither Itec CEO Jacques Duyver, nor marketing manager Ingrid Green, responded to queries about what value the NPO will add to the company and what skills it brings to the table.
When contacted for comment, iKamva Labantu indicated Itec would issue a formal response in due course.
Related story:
Itec, Tiyende part ways
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