THE ICT CHARTER
THE ICT CHARTER
THE ICT CHARTER
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State Owned Enterprises<br />
• The issue of equity in SOEs remains a huge concern. This<br />
category should be evaluated based on the quantifiable Black<br />
shareholding and all the other BEE initiatives that apply.<br />
• Government shareholding in SOE’s must be excluded. This will<br />
encourage Government to devise schemes to bring more black<br />
people in as shareholders when privatising such entities.<br />
Broad-based collective ownership and ESOPS<br />
• Ownership must be broad-based and by implication should<br />
address broad employee participation e.g. ESOPS, rural<br />
development and general poverty alleviation. Points must be<br />
awarded for the inclusion of specific broad based models in the<br />
ownership section of the scorecard.<br />
• It is imperative that black employees play a substantial and<br />
meaningful role in equity ownership in the enterprises that<br />
employ them and the BEE Council should issue guidelines on<br />
what form such participation should take.<br />
• Broad based ownership points may also be earned by the<br />
inclusion of the cooperatives where applicable.<br />
• Broad-based equity ownership should include a geographic and<br />
gender spread to avoid a situation where only black men<br />
benefit.<br />
• The principle as applied in Khulisa and other retail schemes<br />
need to be encouraged.<br />
Direct versus indirect empowerment<br />
• At least one industry association has submitted that indirect<br />
ownership should be considered for the equity portion of the<br />
scorecard. In this event, the <strong>ICT</strong> BEE council would be required<br />
to issue a guidelines on how such indirect ownership would be<br />
quantified, with specific refernce to the methodology to be used<br />
in the process. The majority of the submissions proposed that<br />
only direct empowerment should be considered. A third via<br />
media is that the indirect element, if any, would receive a<br />
smaller weighting and only be considered after the direct<br />
empowerment component has been satisfied.<br />
• A further variation is that indirect shareholding be considered<br />
for the equity portion of the scorecard provided that the indirect<br />
Third Working Draft Page 23 of 57
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