Primedia BEE details
Overview
As a subsidiary of Primedia Ltd, we subscribe to the group transformation policies which are outlined below.
Transformation
Primedia is fully committed to transformation, a key business imperative, which is driven and directed by the board and integrated into the group’s strategic business plans. A transformation committee, an independent non-executive director, and including Ferdi Gazendam, William Kirsh, Paul Nkuna, Kuben Pillay, Funke Ighodaro and Sindi Zilwa, directs and monitors the progress of transformation within the group.
Primedia is proud to have been ranked 21st on the list of Top 200 empowerment companies with an
overall rating of 55,2% on the total BEE score; ranked 1st on the list of the Top 5 empowerment media companies; ranked 9th on the list of Top 10 empowerment companies for skills development with a score of 99,4%; and scored 100% for important BEE areas such as
management and corporate social investment.
Our progress to date against our transformation objectives has been as follows:
Employment equity
Employment equity (“EE”) in the workplace is an important aspect of transformation within the group and is also a key objective of our recruitment strategy. Primedia strives to provide an environment which promotes diversity, redresses past imbalances in the group’s staffing structure and eliminates all forms of discrimination, whether based on race, religion or gender. In this regard, the group has a published employment equity policy and submits employment equity reports and plans to the Department of Labour on an annual basis.
Skills development
All the companies within the group comply fully with the Skills Development Act. The group spends in excess of 3,0% of total payroll towards skills development, of which over 60,0% is directed towards historically disadvantaged employees. There has also been a much stronger focus on management and leadership development evidenced by the various courses conducted within the divisional companies as well as the leadership seminars facilitated by group human capital.
Equity ownership
Over the years, Primedia’s direct financial support to empowerment entities has been significant, including over R300 million of own capital invested to enable empowerment companies to acquire stakes in a number of our business, including Ster-Kinekor Theatres and Africa on Air. In addition, Primedia has recently created significant value for empowerment shareholders, following the purchase of the majority of the economic interest it did not own in Africa on Air. This was created through the financing structure put in place by Primedia when the company was acquired in 1996 as well as Africa on Air’s impressive performance since acquisition.As part of its ongoing commitment to broad-based black economic empowerment, Primedia has recently proposed a transaction to facilitate an increase in the BEE shareholding of Primedia to 20,3%. The transaction, if approved by shareholders, will result in Mineworkers Investment Company (“MIC”) increasing its shareholding interest in Primedia more in line with its voting interest. Primedia has identified MIC as its strategic BEE partner due to MIC’s commercial background, understanding of the media section, its broad-based nature, current shareholding and existing relationship with Primedia.
Preferential procurement
Primedia is committed to adopting and developing supportive procurement policies to facilitate and leverage the growth of historically disadvantaged South African companies. Wherever possible, Primedia will ensure that preferred supplier status is accorded to such suppliers. None of our group companies currently have formal systems to track procurement expenditure, however most companies have instituted informal systems and have started to request relevant information from their suppliers in an effort to verify their BEE status. Certain group companies have also started the accreditation process with Empowerdex. It is estimated currently that 11% of the total procurement expenditure is directed towards black owned and black empowered suppliers as defined by the Department of Trade and Industry.
