Telecom launches BEE buying policy

TELECOM Namibia has introduced a policy to procure goods and services from companies that adhere to certain criteria with regard to black economic empowerment such as shareholding and ownership of previously disadvantaged Namibians and women.

Telecom is the second state-owned enterprise to embark on such a policy after NamPower pioneered this exercise a few years ago. “As proof of its commitment to uplift our people, Telecom Namibia issued orders to the value of some N$66 million to black economic empowerment (BEE) companies in our 2005 financial year and N$94,4 million in 2006,” said the company’s Managing Director Frans Ndoroma yesterday.”This constitutes 28 and 34 per cent respectively of orders placed with suppliers and contractors and about 25 per cent of the overall value of all orders placed.When one takes into account that Telecom is a company which purchases highly technical systems, this is indeed an achievement,” Ndoroma added.According to Works and Transport Minister Joel Kaapanda, acquiring BEE status is not only about black ownership or the enrichment of a few black people.”It is about creating conditions for growth by expanding the entrepreneurship base to increase the opportunity for more people to start and run businesses,” Kaapanda said.Telecom’s board chairman, Titus Haimbili, called the parastatal’s BEE policy “a watershed.””As a leading indigenous company, Telecom Namibia is duty bound to take part in a visionary mission aimed at developing a group of patriotic entrepreneurs and cadres among the black majority who have a vision beyond their personal interests – we need more Frans Indongos here,” Haimbili said, referring to Namibia’s black millionaire who had already accumulated wealth before Independence and since 1990 has expanded and diversified his group of companies.Companies eligible for the BEE procurement policy will be rated according to a scorecard developed by the Namibia Procurement Policy Council (NPPC) headed by Malverene Rittmann.The scorecard gives a company points out of 100 points according to BEE ownership percentage, how many previously disadvantaged managers and women are employed and serving as directors, and what the firm is doing in the form of social responsibility.The NPPC will scrutinise applicants and help prepare all the required documentation.BEE is not yet a legal requirement, but Government has embarked on a policy which will be completed by April 2008.”As proof of its commitment to uplift our people, Telecom Namibia issued orders to the value of some N$66 million to black economic empowerment (BEE) companies in our 2005 financial year and N$94,4 million in 2006,” said the company’s Managing Director Frans Ndoroma yesterday.”This constitutes 28 and 34 per cent respectively of orders placed with suppliers and contractors and about 25 per cent of the overall value of all orders placed.When one takes into account that Telecom is a company which purchases highly technical systems, this is indeed an achievement,” Ndoroma added.According to Works and Transport Minister Joel Kaapanda, acquiring BEE status is not only about black ownership or the enrichment of a few black people.”It is about creating conditions for growth by expanding the entrepreneurship base to increase the opportunity for more people to start and run businesses,” Kaapanda said.Telecom’s board chairman, Titus Haimbili, called the parastatal’s BEE policy “a watershed.””As a leading indigenous company, Telecom Namibia is duty bound to take part in a visionary mission aimed at developing a group of patriotic entrepreneurs and cadres among the black majority who have a vision beyond their personal interests – we need more Frans Indongos here,” Haimbili said, referring to Namibia’s black millionaire who had already accumulated wealth before Independence and since 1990 has expanded and diversified his group of companies.Companies eligible for the BEE procurement policy will be rated according to a scorecard developed by the Namibia Procurement Policy Council (NPPC) headed by Malverene Rittmann.The scorecard gives a company points out of 100 points according to BEE ownership percentage, how many previously disadvantaged managers and women are employed and serving as directors, and what the firm is doing in the form of social responsibility.The NPPC will scrutinise applicants and help prepare all the required documentation.BEE is not yet a legal requirement, but Government has embarked on a policy which will be completed by April 2008.