BBBEE and transformation
As a South African company, Datatec is required to comply with the Codes of Good Practice on BEE issued by the Department of Trade and Industry ("the Codes"), as well as the BBBEE Act 53 of 2003, amended by BBBEE Act 46 of 2013, specifically the ICT sector codes. In terms of this, the South African-based operations are required to comply with the Codes. In terms of section 13G(2) of the BBBEE Act, read with Regulation 12(3) of the BBBEE Regulations, all public companies listed on the JSE are now also required to provide the BBBEE Commission, on an annual basis, with a report on their compliance with BBBEE.
WestconGroup SA (Pty) Ltd, Datatec's South African operating subsidiary, has achieved a Level 3 BBBEE status under the ICT charter codes, giving its customers 110% procurement spend recognition on their respective scorecards. Given the recent changes to the Codes of Good Practice as well as the resulting changes to the ICT sector codes that came into effect in November 2016, the current rating is a significant achievement for Datatec's operating subsidiary.
Further, in FY18 WestconGroup SA (Pty) Ltd concluded a BBBEE ownership transaction in terms of which the total black shareholding in WestconGroup SA (Pty) Ltd increased to 51% black ownership as well as 30% black women ownership and resulting in the following objectives being met:
- Real sustainable empowerment aimed at empowering previously disadvantaged stakeholders;
- Complementing existing BBBEE initiatives; and
- Improving the operation's BBBEE ownership credentials.
Datatec's consolidated BBBEE status, which includes the non-operating head office and newly incorporated Logicalis SA (Pty) Ltd as well as WestconGroup (SA) Pty Ltd, is non-compliant. Datatec takes BBBEE and transformation very seriously and will continue to comply with legislation and work on areas of improvement in the non-operating entities.
Annual BBBEE audits are performed by accredited BBBEE verification agents.
In its broadest sense, transformation is a strategic priority for the company. Datatec is committed to BBBEE in its South African operations and transformation across all business practices and levels.
To view the WestconGroup SA (Pty) Ltd and the consolidated Datatec scorecards, please visit Datatec's website www.datatec.com.