Timelines have been done away with in the final draft of the ICT industry`s empowerment charter which was released in Sandton today.
"2010 will be the major review point at which we will need to determine whether the stipulations will have to be adjusted either up or down," says working group chairman Dali Mpofu.
The final draft also applies to multinationals but allows them to apply for exemptions if necessary.
In releasing the final draft charter, steering committee chairman Joe Mjwara said: "We have attempted to make the charter as inclusive as possible.
"The draft charter released reflects the broader views and empowerment aspirations of all in the ICT sector."
The charter draft was released after six months of heated debate within the industry over the role of multinationals, among other things.
The latest draft allows multinationals to apply for certain exemptions.
Multinationals and others will also be able to apply for a certificate of non-compliance based on something other than equity, but there shall be no blanket exemptions for any enterprise from compliance, says Mjwara.
Shift towards tier system
[VIDEO]Another key change in the latest draft is the shift away from the year-on-year review towards a tier system.
Companies will apply for upgraded ratings as their empowerment milestones are reached rather than having to meet those milestones by certain deadlines.
Among the minimum targets set out in the draft charter are:
* A minimum of 30% of procurement should be directed towards black enterprises.
* An equity participation of 30%, subject to certain conditions.
* Achieve a target of 50% of black people in senior management positions with 30% black women as a percentage of the former.
* If the rand value of the total empowerment stake is in excess of R7.5 billion, then the company will be considered compliant with the equity component of the scorecard.
In the case of State-owned enterprises, the target is 30% of the equity that is not in government hands.
"We have tried our best to stay true to the stipulations set out in the code of good practice," says Mjwara.
Draft gets 'thumbs up`
[VIDEO]Telkom, one of the players to raise concerns over the charter provisions in the past few months, has given the latest draft a "thumbs up".
Nkenke Kekana, Telkom`s group executive for regulatory and public policy, welcomed the draft charter, saying the company also welcomes further industry consultation, as this would enhance the quality of the charter.
Kekana says the draft charter has clarified several outstanding issues. These include equity, governance, double jeopardy for the regulated entities, as well as the role of the regulator and the ICT charter council which will oversee the implementation of the ICT empowerment charter.
He says Telkom is relieved the charter recognises that government shareholding should be excluded from the calculation of equity.
"We particularly welcome the differential model that is tailored for the specific circumstances of State-owned enterprises, whether they provide an essential public service or are active players in the commercial space."
Steering committee and Electronics Industries Federation executive director Roger Dawes expressed satisfaction with the final draft, saying the new draft takes less of a hard-line approach on contentious issues.
The next step in the process will involve representatives from the ICT sub-sectors bringing forward recommendations in meetings from 18 to 20 April.
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