The Black IT Forum (BITF) accuses several IT companies of fronting with regards to BEE in order to gain government business.
It adds that too many IT organisations engage in this kind of behaviour, classifying them as enemies of BEE, and government must be more stringent in handing out IT contracts.
“There are many entities that are operating like this and we are going to call for all of them to be verified more,” says BITF secretary in the Free State Dinti Morule.
“We are engaging with many big companies that are beneficiaries of ICT-related government business around the country. Our mandate is to drive real transformation and empowerment in the sector.”
Cancel contract
In light of this, the forum is calling on the Department of Transport (DOT) to not renew its contract with eNatis developer Tasima unless verification and SME interviews are done.
In a letter sent to Tasima CEO Tebogo Mphuti in June, the BITF said it “finds Tasima to be wanting by any measure that focuses on the seven different elements of empowerment (as per the codes)”.
Morule, who sent the letter, added that the lucrative contract with the DOT should see a considerable amount of benefit derived from the project by black professionals and black businesses.
The forum previously met with Tasima to discuss frustrations experienced by subcontractors and ICT role-players, and the selection process of local subcontractors for the eNatis project.
“People who are at the heart of the business are mostly white people. The CEO is black and we give them brownie points for that, but deliberations also exposed the levels of competence and influence held by black 'managers' in Tasima.”
Independent status
However, Tasima COO Alida Hills says the company is improving in this regard.
Statistics from March 2010 to March 2011, according to Hills, show overall white management has decreased by 6%. At top level management there was a decrease of white staff by 37%, at senior management 31% and at mid-management 37%.
She says Tasima's target is 60/40, with 60% being people of colour. “We are aspiring to that. Currently there is an overall makeup of 70% black and 30% white staff.”
At top level management 38% are white and 62% people of colour, at senior management it's 62% and 38%, and at mid-management it's 56% and 44%.
“We know we're not there yet but we're doing something about it.”
The BITF has called for the verification of Tasima's BEE status by a reputable independent body, as a first step of action.
Hills says Empowerdex will do an independent BEE assessment of the company. “We absolutely support BEE and currently promote the employment of black females.”
BEE enemies?
“We also call for all government departments to be more vigilant of such tendencies, more especially SITA, to do decent verifications before companies can do business with government,” notes Morule.
Morule says Pinnacle and Mustek are also examples of companies that are guilty of the same issues.
He adds that the forum has been talking to Mustek and the issues with it are also BEE-related but the secretary says no further details can be revealed at this point.
However, Mustek MD Hein Engelbrecht says the company “absolutely denies” the allegations, saying it has a comprehensive employee equity plan approved by the Department of Trade and Industry. “We are fully committed to transformation,” he says.
Pinnacle had not responded to ITWeb's queries by the time of publication.
“The problems are many, that stem from companies fronting in order to gain government business. We are aware of a number of such companies that we earnestly regard as enemies of BEE,” says Morule.
He reiterates that the forum's call to government is for tighter measures in the interest of making the sector and the economy in general more accessible to black people.
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