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Indignation at 'BEEs not delivering` comment

Johannesburg, 03 Jul 2003

The industry has responded with indignation to comments by Mojulefa Moseki, of the State IT Agency (SITA), that government will only do business with black economic empowerment (BEE) companies "as and when they deliver", published yesterday on ITWeb.

"One understands that there is a balance between fulfilling business needs and also creating opportunities for black companies, and this is always going to be a balancing act... This reasoning does not mean that we have to sit back and accept the progress we are making," says Hasmukh Gajjar, executive director at Faritec and former chairman of The Black IT Forum.

"The pace at which the public sector is supporting black IT enterprises is far too slow, moving at a snail`s pace, in fact."

He points out that government has a responsibility to BEE companies. "If government feels there are inefficiencies in black enterprises, they must be identified and worked through by multiple stakeholders in our sector."

Simon White, CEO of the Rural Telecoms Development Company, says the comments are "irresponsible", and "a gross generalisation, presupposing that all white companies providing services to SITA have been delivering".

He also threw his weight behind the sentiment that government has a responsibility to address BEE shortfalls. "We all understand the challenges the black companies are facing in the industry and we all have the responsibility to see they have sufficient support mechanisms. SITA also has that responsibility."

Moseki was speaking at a First Tuesday presentation on e-government where he revealed that the national IT spend on BEE companies is falling short of its targeted 30% of expenditure. "Technology is expensive," he justified. "We will not just rush for the numbers, we will consider every case on its merits."

Related story:
Govt admits BEE firms not delivering

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