The top empowerment company in the support services sector is Adcorp Holdings, whose transformation policy is not confined to bringing in empowerment partners through equity or strategic board appointments.
The JSE-listed group, whose businesses are focused on human capital, human resources and communications, has several managers who are from previously disadvantaged backgrounds.
Blacks constitute 20% of senior executive management and 38% of middle management. Women make up 58,4% of senior executive management and 78,3% of middle-junior management.
Adcorp's total BEE score was 66,49%, which was more than twice what packaging giants Nampak (31%) and Consol (21%) scored.
Adcorp scored 31% in voting rights, 31,2% in economic interest, 0,6% in economic interest (black women) and 8,4% in economic interest (designated groups).
Though it is the winner in this sector, it was placed seventh in the overall ranking. Bidvest (ranked 13th overall) came second in the sector.
Adcorp has also been involved in impressive empowerment deals.
About three years ago, Adcorp entered into an empowerment deal with the Black Management Forum Investment Company (BMFI).
The deal involved a consortium of the investment arm of the Black Management Forum (BMF) and Tshirundu Investment Holdings.
The new company was named Adcorp Communications Solutions. The consortium acquired a 25% stake, worth R93,5m.
The communications division included Simeka TWS Communications, Graphicor and PR Connections. The deal raised Adcorp's empowerment holdings to 34%.
Another deal was with Zungu Investment Company (Zico). Zico took a joint 25% stake in Adcorp. The deal was valued at R320m.
The support services sector boasts giants such as energy group Mvelaphanda, diversified industrials giant Bidvest, packaging titans Nampak, Astrapak and the recently listed Consol.
But most of these companies performed dismally last year. The big companies in this sector seem to battle with poor empowerment public relations, which means their empowerment credentials are often overlooked.
This has been the case with this year's runner-up, Bidvest and its deal with Dinatla.
Two years ago Bidvest announced that Dinatla would acquire about 15% of its issued share capital.
Empowerment experts and writers at the time said the funding component of the Bidvest BEE transaction amounted to a three-year, interest-free loan in favour of Dinatla, funded by Bidvest shareholders. The transaction was criticised because it appeared to be dependent on Bidvest shares trading at more than R60 for Dinatla to benefit.
This, they said, put the empowerment status of Bidvest in jeopardy.
Bidvest's total BEE score was 62,63% and the group got 25,3% in voting rights. In voting rights (black women) it scored 16,6% and economic interest 25,3%.
However, Adcorp has implemented BEE at many levels, each with its own criteria and monitoring process. Adcorp believes that it must redress past inequities, thereby reducing SA's critical skills shortage.
The company was founded in 1978 and listed on the JSE in 1987, with a market capitalisation of R6m and a turnover of R16m.
In 1994, it started Simeka Communications and acquired Acumen and Graphicor in 2000, which helped it become a leader in recruitment solutions, human capital management and corporate communications.
