Original publish date – Mon, 05 Jul 2010 14:37:19 +0000, Keith
Sometimes journalists annoy me! There is a story on ITweb (http://www.itweb.co.za/index.php?option=com_content&view=article&id=34554:telkoms-empowerment-shrinks&catid=118&Itemid=66) discussing Telkom’s empowerment credentials. Their one big empowerment investor, The Elephant Consortium has sold its shares. The headline of the story is “Telkom’s empowerment shrinks.”
Now, most journalists spend their time moaning about these ownership deals, and criticising the enrichment of some people. Yet, when an opportunity presents itself, the journalist chooses to put a negative spin onto the fact that Telkom has lost some of its black shareholding. One would think this is a good opportunity to suggest that Telkom spend more time, effort and money on the other 6 elements.
In the meantime the journalist did not analyze the affect on the Telkom scorecard of this sales of shares: Since the consortium owned shares for 5 years, the recognition of ownership after loss or sale of shares comes into place. Their scorecard will not be too badly harmed. In any event they only earned 15.39 points on ownership, out of 73.21 points. It will be very easy for Telkom to remain a level 4 company. They only earned 5.3 points on ED, so achieving full marks on ED will automatically help them reach level 4, despite losing all ownership points, which will not happen anyway.
A better approach by the journalist could have been – “New enterprise development opportunity for small IT firms looms now that Telkom has to make up points lost on the sales of shares!!”.