When asked to write an article on the changes / developments and proposed solutions for the ICT sector in 2006, I traversed numerous areas that need attention - urgent attention in my view - and was almost paralysed by my thoughts.
Having dug deep, I managed to regain my composure to focus on areas that need to be prioritised. Given my lengthy involvement in the drafting of the ICT charter, I thought I should resist the temptation to pronounce an opinion on the delay in finalising the draft ICT Charter...and almost succeeded.
Critical areas
In pursuing a relationship with SITA to give meaning to its "towards demographic equity" chosen mantra for the next decade, the Black Information Technology Forum, recently celebrated its 10 years of representing black IT professionals of different persuasion - business owners (big and small), managers and technicians, as well as identifying some critical areas that would share commonality with SITA in terms of its mandate.
The critical areas were identified as:
* Small and medium enterprise (SME) development via skills transfer and setting aside certain tenders;
* Support for women-owned companies via skills transfer and setting aside a designated number of tenders;
* Awarding of tenders to black companies and companies complying with the broad based black economic empowerment model espoused through the draft ICT charter and the Codes of Good Practice (the COGP); and
* Regional awarding of tenders, alternatively ensuring the growth of the regions by guaranteeing their active and meaningful participation in the execution of services and implementation of products required by Government.
Needless to say, the only way SITA can do this is by ensuring that products and services are preferentially procured factoring the above into their processes. It is fairly obvious that SITA would either directly award to qualifying companies in terms of the set-aside principle or indirectly ensure benefit by monitoring that when tenders are awarded to the "usual players", they provide enterprise development and procure products and services from companies deserving of the set-aside principle.
After lengthy engagements with SITA, it became evident that SITA was doing all it could, but the organisation cannot address the critical areas identified without breaching the provisions of the Preferential Procurement Policy Framework Act (PPPFA).
No provision made
This piece of procurement legislation for government makes no provision for set-asides. It simply recognises the role played by historically disadvantaged individuals (HDIs) in the ownership equity of the enterprise, together with the level of activity that HDIs enjoy in the management of it. It also looks at price (functionality is sometimes considered), and only then preference points are given on the basis of this evaluation via numerous formulae.
The deputy president, Phumzile Mlambo-Ngcuka will have to play an active role to ensure that we get set-asides agreed to for women and SMEs as soon as possible.
Mthunzi Mdwaba, group CEO, Torque-IT
One understands that it is through the evolution of black economic empowerment (BEE) that two extra Bs, namely "broad based" have been added to the programme. While it needs to be recognised that, in the initial thinking, all we needed for black empowerment and transformation was the ownership, or part ownership, of enterprises by black people, coupled with the presence of some black faces here and there (which in most cases is never verified by paying a visit to the enterprise and scratching below the surface to see what comes up) this is wholly inadequate for the fast-tracking of transformation and ensuring the sustainability we talk about all the time.
Rife fronting
In fact, this is what has inadvertently or through the unwritten law of unintended consequences, led to rife fronting in our sector. This was recognised by government, hence the passing of the BEE Act, the charters and the COGP. A short trip down memory lane will also remind you that all the drafts (except for the last one) of the ICT charter recognises SITA and the Isett Seta as being the two organisations without which we cannot deliver transformation.
For those of you who have been too hectic to stay in touch with one of President Mbeki`s arguments - on the role of the state, in other words, intervention - this is the role SITA should and must play.
Transformation delayed
However, as I have mentioned, "transformation delayed, is transformation denied"! We cannot afford this delay any longer. All the momentum that was conspicuous in the sector has disappeared because everyone is waiting for the finalisation of the COGP. It is now akin to waiting for Godot; as my English lecturer at Wits used to say: waiting, not knowing when, how and in what form that what you are waiting for will present itself.
In addressing the closing of the gap between the first and the second economy, the deputy president, Phumzile Mlambo-Ngcuka will have to play an active role to ensure that we get set-asides agreed to for women and SMEs as soon as possible. She will also have to lobby for the legislating of the draft ICT charter as a code or, alternatively, by assisting in bringing the necessary government departments together to provide a bridging mechanism between the PPPFA and the provisions of the draft ICT charter.
Finally, we need to see more skills development of individuals and skills and knowledge transfer between enterprises by way of enterprise development. I know it may sound like procurement is more important than skills development but this is because I had to focus on what we need for next year, whereas skills development is more long term.
In fact, in the November issue of ITWeb Brainstorm, I was reminded by way of an analogy that skills are far more urgent and critical. Teaching people to fish and empowering them with the necessary skills are far more sustainable than giving them fish.
* Mthunzi Mdwaba is group CEO of Torque-IT South Africa, president of the Information Technology Association and national branding and communications executive of the Black IT Forum.
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