PROOF THAT THE ANC NOW CONTROL S.A MEDIA THROUGH B.E.E POLICIES.

Transformation

In 2004 Media24 established a Transformation Forum which functions as a policy-making body to monitor the various elements of the BEE scorecard i.e. ownership, management, employment equity, procurement, management, skills training and development, entrepreneurship and corporate social investment. The forum, chaired by Media24 managing director Hein Brand, comprises of senior management representatives from each business unit. Over the past few years Media24 has made progress with its transformation aims which are monitored using a scorecard in terms of the Department of Trade and Industry’s Code of Good Practice For Broad Based Black Economic Empowerment (BBBEE).

Direct empowerment
In September 2006 Media24 launched the biggest BBBEE share offer in the print media industry, Welkom Yizani, which offered eligible black people and groups an indirect interest of 15% in Media24 Holdings. The offer was three times subscribed with over 100 000 applications received for 14,6 million Welkom Yizani ordinary shares. Applicants who applied for more than 430 Welkom Yizani ordinary shares received at least 430 Welkom Yizani ordinary shares, with 85% of the applicants receiving the full number of shares they applied for.

The Welkom Share Scheme, which was launched in 1999, has matured with every R1000 invested, yielding a return of R31 000. The total amount paid out was R235 million.

Employment equity
Media24 regards employment equity as a strategic advantage. Each business unit has an employment equity plan and strategy with specific aims, especially in respect of the appointment of black women and middle and senior management employees.

Preferential procurement and job creation
Media24 and other companies in the Naspers group have combined their buying power to create a centralised bargaining company called M-Web CommerceZone. It has been mandated to implement a black economic empowerment (BEE) procurement policy. Suppliers’ BEE performance is evaluated according to specific criteria and suppliers are expected to show a marked improvement in their annual BEE rating.

BEE has also been a priority at Media24’s subsidiary, Newspaper Leaflet Distributors (NLD), since its inception in 1994. About 95 per cent of its contractors come from previously disadvantaged communities and they, in turn, provide jobs to over 2 000 employees countrywide. Another example of Media24’s commitment to BEE is the independent postal service company, Multi-Mail, which was established following the rationalisation of Media24’s postal service. NND24, one of Media24’s distribution businesses, provides jobs for over 600 people through 119 private contractors who provide ancillary services. Several Media24 titles such as the Daily Sun, Kaapse Son and City Press use contractors to sell and distribute their products, providing job opportunities for more than 2 000 newspaper sellers.

Black economic empowerment partners
Media24 is proud of its partnership with several black economic empowerment companies. Vakazi, a black women’s organisation, owns 30% of the Via Afrika division Afribooks, while another 30% is owned by 1 134 previously disadvantaged people. Thebe Investments has a 30% stake in Via Afrika’s school and academic publisher National Education Group (NEG). Kurisani Investments has a 26% share in each of the following businesses: Paarl Print, Paarl Print Labels and Paarl Web Gauteng. Kurisani also finances loveLife, a community organisation that runs life skills and HIV/Aids prevention campaigns for youngsters countrywide.

Diversity training
Diversity training is a key element of Media24’s general transformation strategy and is actively promoted by the company’s human resources department. Heads of business units are encouraged to support and endorse this form of training for all line managers and staff.