| BROAD-BASED BLACK ECONOMIC EMPOWERMENT |
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| Murray & Roberts is committed to broad-based black
economic empowerment and addresses the full range of
empowerment requirements across its diverse operations. |
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| Fatima Hendricks, engineering
maintenance manager,
Hall Longmore |
Alex Mlotshwa,
yard manager,
Murray & Roberts Steel |
Thandi Mokgalagadi,
branch manager,
Much Asphalt |
Luckie Molubi,
human resources executive,
Genrec Engineering |
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| Murray & Roberts has engaged a comprehensive broadbased
black economic empowerment (BBBEE) strategy
which aims to achieve: |
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appropriate broad-based empowerment ownership at
the level of Murray & Roberts operating subsidiaries
through a tiered approach at Murray & Roberts
Holdings Limited and selected operating subsidiaries |
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a meaningful number of black senior executives
throughout the Group |
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an employee complement that reflects the diversity of
South Africa's demographic profile |
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a core complement of black professionals |
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preferential procurement policies that leverage
the broad-based principles of black economic
empowerment |
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enterprise and social development programs aimed
at accelerating the development, empowerment and
access to the economy of previously disadvantaged
individuals |
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The Letsema BBBEE shareholding transaction in
which Murray & Roberts purchased 10% of its issued
share capital on 19 December 2005, offers previously
disadvantaged employees, their families and some of the
communities in which Murray & Roberts operates, a
stake in the company and its future.
The shareholding initiative comprises four trusts: |
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Letsema Sizwe Broad-Based Community Trust to
benefit disadvantaged community groupings |
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Letsema Khanyisa Black Employee Benefits Trust to
benefit current and future qualifying black employees
and their immediate families |
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Letsema Vulindlela Black Executives Trust to benefit qualifying current and future black executives |
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Letsema Bokamoso General Staff Trust to hold the shares in Murray & Roberts granted to
qualifying employees |
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Since Letsema was launched, the Murray & Roberts share price has appreciated by more than
400%, creating wealth of over R1,7 billion for the participants, with more than R315 million
attributable to the 14 125 participants in the General Staff Trust.
Through the Community Trust, we have partnered with The CIDA Empowerment Trust, Disability
Empowerment Concerns Trust, Heartbeat Centre for Community Development, Kurisani Investment
for LoveLife Youth Development Trust, Outward Bound Trust South Africa and Soul City Broad-
Based Empowerment Company to provide a holistic youth development model and support people
with disabilities. The Letsema Sizwe Broad-Based Community Trust has in 2007 distributed
R5,8 million to the beneficiary organisations and this amount is expected to increase in 2008.
The Black Employee Benefits Trust allocated R1,9 million in benefits to the Group's qualifying
employees and their families by building seven homes for employees in partnership with Habitat for
Humanity and awarding nineteen secondary and tertiary education bursaries to children of qualifying
Murray & Roberts employees.
To date, 150 black executives across the Group have been allocated shares under the Black
Executives Trust, enhancing the commitment of black executives to Murray & Roberts.
Murray & Roberts has five black managing directors in its major operations in the SADC
region (19 companies) and although much remains to be done, we have an increasing
number of black executives and women executives within our system. The Group has a
comprehensive recruitment process in place that focuses on undergraduate and young
qualified talent.
At operating level, the Group has engaged with a number of black economic empowerment
partners which have taken up equity in the following businesses: |
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AKA Capital has a 20% share in Murray & Roberts Cementation |
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Jay & Jayendra Group has a 30% share in the UCW Partnership |
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Lehumo Women's Investment Trust has a 26% share in certain of the Group's toll
road operations |
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In our construction businesses, joint venture or subcontracting arrangements are entered
into with BEE partners to pursue and deliver projects.
Murray & Roberts has conducted a comprehensive independent review of its empowerment
status relative to various industry charters and current legislation. The review has shown
that the Group has effective empowerment ownership of 25,8% and meets current
empowerment criteria appropriate for procurement policy in South Africa. It has identified
key agenda items for further development of this status over the 10 year time frame
stipulated in the legislation to meet future development criteria. |
