Analysis of the implementation of black economic empowerment : the case of TransUnionITC.

Abstract

This paper looks at the Black Economic Empowerment (BEE) transaction at TransUnionITC. The transaction was concluded in 2005 however TransUnionITC has been involved in BEE activities and initiatives for the past decade. TransUnionITC has been instrumental in enhancing BEE policies in that they have been involved in rural training and awareness programs aimed at making consumers aware of their account history profiles and how they affect their economic participation. The TransUnionITC BEE transaction is analysed here in terms of the following: TransUnionITC Considerations, the BEE partners, equity holding effectiveness, management after the BEE transaction, beneficiaries of the transactions, the BEE implementation process, Financial Services Charter scorecard, the DTI's generic scorecard or compliance issues, problems encountered, stakeholder expectations management and survey of TransUnionITC staff. The company strategy will also be analysed to see if it has changed as a result of the transaction and how this has affected the company's strategic focus. Factors that have been influenced by the transactions such as profitability and new opportunities will be explored. There are at least 24 laws as well as policy and regulatory provisions dealing with empowerment (Business Map, BEE Rationale and evaluation - 2005), these include sector charters, various tender boards, small business promotion bodies, labour relations institutions and regulatory councils. Some of these include: Maritime transport and services industry charter, Forwarding and clearing Industry charter, Mining sector charter, Tourism industry charter, Petroleum and liquid fuels industry charter and Financial Sector Charter, Information Communication

Analysis of the implementation of Black Economic Empowerment: The case of TransUnionITC. Technology (lCT) charter. These charters are still under review, and will be finalised after the revision of the codes of Good Practice after December 2005. TransUnionITC falls within the FSC charter and as a result their BEE transaction will be analysed to see if it complies with this specific charter.