If all goes according to plan, the ICT charter should again be ready for Section 9 (5) gazetting by the end of April - a goal nearly seven years in the chasing.
This open-ended commitment came from Thabo Masombuka, director of BEE partnerships in the enterprise industry division at the Department of Trade and Industry, during his presentation at the annual Black IT Forum conference, held in Fourways last week.
Masombuka's allusion to 'all going according to plan' refers to the reaching of a resolution on objections from the last draft version of the charter. The last draft was submitted for gazetting in 2009, but was thrown back to the charter's steering committee for clarity on outstanding aspects, such as evidence of consensus, motivation, and empirical evidence.
Objections were also raised about the document's reference to an ownership target of R7.5 billion. “The charter spoke of 30% ownership, yet there was a cap of R7.5 billion, which was the threshold of the industry,” explained Masombuka. However, it has been reported this issue has been resolved.
The last draft version also received objection from the Electronic Industry Federation (EFT), claiming the targets set were unrealistic, uneconomical, and that no draft consultation was done. The body also insisted that an economic impact analysis be conducted.
“I have been given assurance by the chairman of the steering committee that the concerns of the EFT are something to be dealt with in accordance with what stakeholders agree. Once we have satisfaction, as government, that a consensus has been reached, we have no reason why we shouldn't gazette the charter,” he noted.
In January this year, another final draft was submitted and discussions with the steering committee for clean-up have been ongoing throughout March. Should the charter be approved for Section 9 (5) of the Broad-Based Black Economic Empowerment Act 53 of 2003, the minister will then publish the draft charter in the Government Gazette and allow the public a period of 60 days to comment.
Speaking on the process which began in June 2003, Masombuka argued: “It is one thing to say the process has been long and tiring, but it is another to say that issues have been accurately addressed.”
The charter has been dogged with delays dating back to May 2005 when the first 'final document' was released. However, this process was interrupted by the launch, in 2005, of the BEE codes, with which the charter needed to be aligned. The committee has since signed off on another four 'final' drafts.
Nonetheless, Masombuka said in his experience of the process, the end of April goal line is likely. “I can safely say, after having engaged with these processes, that your charter is closer to gazette as a Section 9 (5); but we need satisfaction as a government that due process and consultation has been followed,” he concluded.
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