Tongaat Hulett achieves high rating on broad based BEE scorecard
5 December 2007
Tongaat Hulett confirmed its position as a top performer in the area of transformation when it was awarded a Level Three Contributor status in terms of the Broad-Based BEE Scorecard by an independent verification agency, National Empowerment Rating Agency KZN (NERA KZN). BEE partners and other invited guests were present at NERA’s official presentation of its certificate of recognition to Tongaat Hulett CEO Peter Staude.
The rating entitles Tongaat Hulett customers to recognise 110% of procurement spend through purchases made from the company. This award follows on the corporate restructuring transactions completed earlier in the year, which included the listing and unbundling of Hulett Aluminium (Hulamin) out of the Tongaat-Hulett Group, the creation of two separate, focussed listed entities – Tongaat Hulett and Hulamin and the introduction of 25% BEE equity participation in Tongaat Hulett.
CEO Peter Staude says, “Tongaat Hulett has always viewed Broad-Based BEE as an opportunity to make a positive contribution towards transformation in South Africa to the benefit of all our stakeholders. Confirmation of our status as a Level Three Contributor is a reflection of our progress in the areas of BEE equity participation, employment equity, preferential procurement, enterprise development, corporate social responsibility and training and development.”
Highlights of the NERA accreditation included:
Confirmation that Tongaat Hulett had achieved a score of 21.63 points (including 2 bonus points) out of 20 for the ownership element of the scorecard.
A score of 5 points out of 5 for the area of corporate social responsibility re-enforced Tongaat Hulett’s continued commitment to building and enhancing the quality of life of people, with an emphasis on previously disadvantaged communities within which the company operates.
The area of enterprise development yielded a score of 13.73 points out of a possible 15 and reflected the activities that Tongaat Hulett has undertaken in order to assist with the development of black owned medium sized businesses. Tongaat Hulett’s Medium Scale Farm Program resulted in the transfer of 98 farms, comprising 11 871 hectares of land, to previously disadvantaged emerging farmers.
Linda Ngcobo, CEO of NERA KZN says, “Very few large companies have done as well as Tongaat Hulett in these early stages of BEE rating. This is an exceptional achievement, based on a challenging scorecard.”
Peter Staude concludes, “We are delighted by our 2007 accreditation and see it as an excellent foundation upon which to build for the future. Going forward, we will particularly focus on making further improvements to our employment equity profile with increased resources being directed at skills development.”
About Tongaat Hulett
Tongaat Hulett is an agri-processing business which includes the integrated components of land management, property development and agriculture. Through its sugar and starch operations in Southern Africa, Tongaat Hulett produces a range of refined carbohydrate products from sugar cane and maize. It has considerable expertise in downstream agricultural products, bio-fuel production and electricity co-generation. Competition for alternative land usages is increasing rapidly. Tongaat Hulett balances the operational requirement for cane supplies to its sugar operations with the transition to property development. It is well positioned to benefit from the changing world of agriculture/agri-processing and the increasing demand for land.
NERA is a national concern that has positioned itself as a service provider in BEE verification and related areas. The organisation, which evaluates companies against DTI codes, as well as various sector charters, includes Shell, IBM, Old Mutual, Sanlam, Holcim and Santam among its prestigious client base.
5 December 2007