10 March 2006
	SUPPORT SERVICES BEE CREDENTIALS rigorously ASSESSED By Mzwandile Jacks Sector represents several industries and faces a challenge in developing a black empowerment charter

Predicting the future for black economic empowerment (BEE) in the support services sector of the JSE is not easy. The sector consists of 10 companies that represent a range of industries. The support services sector includes: services, trading and distribution company Bidvest; education, skills development and human resources group Advtech; waste management company Enviroserv; security firm Command; packaging firm Nampak; glass manufacturer Consol; and packaging and printing company Alex White. In the construction sector, which consists of companies all operating in the same industry, trends are easier to spot and analyse. An economic boom that results in an increase in building will affect all companies of the construction sector in a similar way. In the support services sector, however, a dramatic reduction of the crime rate would have a negative effect on Command, but less of an effect on Nampak. A clear understanding of the support services sector, particularly its response to empowerment, would require an analysis of all the industries that are represented. Even discussions on the possibility of having a charter in this sector has not been as vigorous as in other sectors. Adcorp Holdings was named the most empowered company in this sector. But many believe a company such as Mvelaphanda Group - a trailblazer in the empowerment arena - is even more empowered. Mvelaphanda - started as a private company by chairman Tokyo Sexwale in 1998 - now has minority investments in more than 20 companies across a diverse range of sectors, including property, oil and gas, and financial services. But its performance in the support services sector leaves much to be desired. Mvelaphanda took position 95 in the overall ranking for 2006, from 56th last year. It came eighth in the sector. However, if you look at the voting rights, Mvelaphanda scored 58% and the winner scored 31%. It scored 53% in net equity value and equity sale respectively. The winner scored 10,4% and 12% respectively. All these pertain to ownership, which is the most important category. Adcorp scored 13% in management (senior management) and Mvelaphanda scored 20,3%. Diversified industrial services company Bidvest came second in the sector rankings. Its total ownership score was 18% against Adcorp's 15,2%.