ACTOM, leading manufacturers, suppliers, repairers and maintainers of electro-mechanical equipment, has attained a Level 1 rating under the government’s revised Broad-Based Black Economic Empowerment (B-BBEE) regulations and amended Codes of Practice.
The group, which attained the new rating on February 9 this year following auditing of its B-BBEE status by a SANAS-accredited verification agent for the financial year to end-March 2017, previously had a Level 3 rating.
ACTOM is the only company in its industrial sector that currently enjoys Level 1 B-BBEE status.
“The upgrading of the group to Level 1 is chiefly attributable to the advances we have achieved in Skills Development during the year under review, due to the extensive training that the group undertakes, ” commented Mervyn Naidoo, ACTOM’s Group CEO.
Skills Development is one of five key elements on which companies are assessed for their B-BBEE ratings. In the latest audit ACTOM also scored well on three of the other four key elements, namely Ownership, Enterprise & Supplier Development (ESD) and Socio-Economic Development (SED).
The exception was the Management Control key element, where the group’s score was higher than for the previous year but still fell well short of the target score.
Naidoo said that satisfactory progress continued to be achieved in promoting people of colour and women to junior management positions during the review year, as in recent years, but the group hadn’t succeeded in achieving similar advances in middle and senior management.
“The reduction of opportunities for business growth arising from the persistent recessionary economic conditions has been a major contributory factor to the slow rate of advance achieved to date in this respect. However, we are giving close attention to the matter and have put in place measures aimed at accelerating the advance of people of colour and women into higher management levels throughout the group,” he stated.
In addition to the new B-BBEE rating, another change that enhances ACTOM’s standing in the market place – particularly among state-owned enterprises (SOE’s) and government – is the recent increase in the group’s black-empowerment shareholding to 51,3% and of the black women shareholding to 34,66% – these previously being 32,5% and 11,5% respectively.
The change, which came into effect in October last year, advances the group’s black empowerment and black women shareholdings to their optimum levels in terms of the black-empowerment requirements set by SOE’s, government departments and many major metropolitan municipalities, among others, for local private sector companies seeking to do business with them.
Andries Mthethwa, ACTOM’s Deputy Chairman, said the combined effect of the group’s Level 1 B-BBEE rating and its optimum black-empowerment shareholding status is to place it in the highest attainable position to do business with SOE’s and municipalities from the point of view of meeting their black empowerment requirements.
“In addition to this they also enhance our standing with other private sector companies, since they, like us, are actively encouraged by the B-BBEE legislation to do business with accredited black-empowered companies to enhance their own B-BBEE standing with the authorities and hence the SOE’s,” he said.
“This consideration applies especially to our Level 1 status, as it means that another private sector company that does business with us will gain higher B-BBEE procurement credits than when dealing with a company that has a lower B-BBEE rating,” Mthethwa concluded.
ACTOM (Pty) Ltd is a level 1 B-BBEE Contributor with 51.30% Black Ownership and 34.66% Black Women Ownership. It is the largest manufacturer, solution provider, repairer, maintainer and distributor of electro-mechanical equipment in Africa, offering a winning and balanced combination of manufacturing, service, repairs, maintenance, projects and distribution through its 38 outlets throughout Southern Africa.
ACTOM is also a major local supplier of electrical equipment, services and balance of plant to the renewable energy projects.
It also holds numerous technology, distribution and value added reseller agreements with various partners, both locally and internationally.
For further information contact Andries Mthethwa, ACTOM (Pty) Ltd
PO Box 13024, Knights 1413
Tel (011) 820-5094 Fax (011) 820-5075
Press release compiled by Julian Kraft, J Kraft Public Relations
PO Box 2826 Wilropark 1731
Tel (011) 472-6686
Date: March 23, 2018