EOH BLACK EMPOWERMENT STRATEGY FRAMEWORK
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1 EOH BLACK EMPOWERMENT STRATEGY FRAMEWORK Name of Company: EOH Holdings Limited ( EOH ) Core Business: Business and Information Technology Solutions Type of Enterprise Black Empowered (25.1% broad based black owned) Charter ICT (Not yet accredited) Number of Employees: 900 (including contractors) PDI Percentage: 38 % as at April 2006 (Africans; Coloureds; Indians) Achievement: EOH was nominated as one of the Top ICT Companies in South Africa for 2005/2006 Commitment EOH is committed to the empowerment of those who have been economically marginalised and previously disadvantaged through discriminatory practices and aims to eradicate all forms of discrimination and imbalances, to create a work environment which promotes equal opportunities for all and to ensure that the future environment within we work will reflect the demographics of the South African society. EOH acknowledges and accepts that it has an important role to play in normalising our society through a positive intervention programme, in order to redress the imbalances created by previous practices, arising from all forms of discrimination including race, gender and disability. EOH s BEE Strategy has been aligned with the ICT BEE Charter, according to the seven components of transformation. Each component is detailed below:- EOH BLACK EMPOWERMENT STRATEGY FRAMEWORK SEVEN COMPONENTS OF TRANSFORMATION
2 2 COMPONENTS OF THE EOH BEE STRATEGY FRAMEWORK A. EQUITY OWNERSHIP The combined effect of the merger of black-owned Mthombo IT Services (M-IT) into EOH and the establishment of the Mthombo empowerment trust (Mthombo Trust) has resulted in black ownership in excess of 25% of the shareholding of the company, with broad black employee participation, without external funding. EOH will continue to strive to improve on this percentage. B. MANAGEMENT AND CONTROL Black people currently hold four of the ten director positions on the EOH Board, three of which are in executive directorship positions with Dr. Nakedi Mathews Phosa holding the non-executive chair. C. EMPLOYMENT EQUITY EOH complies with the requirements of the Employee Equity Act and through a process of continuous improvement of its employment equity profile, currently has a PDI staff complement of 35%. D. SKILLS DEVELOPMENT EOH s skills development policy meets the aims and objectives of the Skills Development Act, implemented at operational level by each Business Unit. EOH Academy, the Group s training division, accredited through the Services SETA, plays a vital role in developing employees through its various training initiatives. Employees also attend external training programmes and seminars in line with their function requirements and/or the upliftment of their personal skills. EOH undertakes to enter into Learnerships agreements as part of its commitment towards the development of skills and experience of PDIs within the ICT Sector as well as business in general and where possible offer permanent employment to successful learners. M-IT participates in the skills program ISET SETTA whereby they take an average of 10 learners per year and are a major sponsor of University of Witwatersrand STEP Program. The Learnership intake is a program run by DTI that addresses the shortage of black skills in the ICT Sector Navigor Business Unit of EOH Consulting (Pty) Ltd entered into two learnership agreements with ISETT SETA and Oracle SA (March 2004). Both learners are now permanently employed. Navigor have once again set up two Learnership agreements from September Softworx sponsored two students on their learnership rotation from the CISA University ICT Campus for a two-week intensive programme. EOH Outsourcing participated in two IT Technical Learnerships and subsequent workplace training.
3 3 EOH Academy is in the process of setting up learnership agreements with a few Business Units within the Group. Their learners job rotation will commence January and March There are 3 learners that started on the 5 th of January They are going to be with EOH for 7 months for their workplace experience, which forms part of the learnership which they are doing through Bytes Technologies. E. PREFERENTIAL PROCUREMENT EOH has developed and implemented policies and procedures to achieve 40% procurement from black-owned and black-controlled enterprises by Currently this stands at 13% of its total procurement of approx R66 million for the last financial year. F. ENTERPRISE DEVELOPMENT Through joint ventures with black SME s, EOH encourages and supports black entrepreneurs to participate in business opportunities. EOH is committed to share its knowledge and expertise to enable black entrepreneurs to development sustainable business models. G. ACCESS TO ICT AND CORPORATE SOCIAL INVESTMENT EOH recognises the need for the Group to contribute to the transformation and economic growth of SMMEs and the community at large in terms of access to ICT and corporate social investment. EOH Group CSI Strategy is to educate, train, coach and provide support to community based organisations (CBOs). The Group s involvement with CBOs is done on a regional basis. The support provided is Strategy Development, Project Planning & Co-ordination, Project Management Training, Administration Training, General Business Education and Coaching. Although the above strategy forms the framework for future initiatives undertaken within EOH, the individual Business Units have independently undertaken various CSI initiatives such as: EOH Christmas Initiative: In the spirit of the festive season EOH thought it a good idea to give back to those less fortunate. The EOH CSRI (Corporate Social Responsibility Initiative) Christmas Drive project was in the form of a party that took place on the 7 th December We invited 100 Children between the ages of 5 and 12 years old who are linked to COPS-SA (Community Based Prevention & Empowerment Strategies South Africa - Company Registration Number: 2000/025755/08 Non Profit Organisation Registration: NPO website: ) based in SOWETO. This initiative also coincided with the 16 day of violence against women and children. EOH staff and business units contributed to the funds raised for the project. A Christmas tree in the EOH Atrium had each child s name, age and gender on and provided an identity to EOH Group and their staff s generous contributions. We provided the children with refreshments and transformed them into their favorite cartoon/movie characters
4 4 with face painting and had jumping castles for some good fun! Santa gave each child a gift in the form of a school bag with stationery, food hamper and photo with Santa as most of these children have never owned such luxuries. Social Upliftment: A team from EOH Consulting was involved in the social upliftment of Kanana Primary School in Ivory Park. Globe Donation: EOH donated World Globes to PDI Schools within Gauteng. EOH Ltd/SA Golf Development Charity Golf Day: EOH sponsored the EOH Ltd/SA Golf Development Charity Gold Day organised by the Newlands Rotary Club. This event was in support of the Amy Biehl Foundation Trust for their Khayelitsha Golf driving range, which operates under the wing of the SAGDB and is aimed at developing the talents of the many underprivileged children on the Cape Flats. Nazareth House: Ongoing financial sponsorship is provided to two Aids orphans at Nazareth House. In addition, collections for clothes, cash, toys etc. are arranged by the staff of EOH Western Cape at Easter and Christmas time. Eros School for the Cerebral Palsied: EOH Western Cape, through the dedication of Gasant Harris, has been involved with the Eros School for the Cerebral Palsied, located in Bridgetown, Athlone, since the beginning of 2005 as a School Governing Body member. Eros initially catered solely for students with cerebral palsy from the previously disadvantaged community as far as Vredenburg, Simons town and Mossel Bay and is 60% funded by the state. A hostel within the school boundaries and part of Eros has been a home to students coming from afar. Eros community has since changed and now cater for all students with learning disabilities including the mainstream children who are not comfortable within a mainstream school. Since Gasant s involvement with Eros he has been elected as chairperson. He also looks after the finance portfolio. Garden Cities: For the past 3 years, EOH Western Cape has been involved in assisting Garden Cities (a non-profit organisation) with various community and rural development projects in the Western Cape. This involvement has up to now taken the form of a director of EOH Western Cape also being the chairman of the board for Garden Cities. In addition to this, a donation of R2000 was made towards the construction of a school hall at Isimela High School in Langa. This project formed part of the effort to eliminate the backlog of school halls required in the Western Cape. Donation to St. Michael s Home for Girls in association with Media Film Service: A donation of R2000 was made to Medial Film Service on behalf of their fundraising effort for St. Michael s home for Girls. St. Michael s home is a nonprofit children s home. All the residents of the home are victims of neglect and/or abandonment as well as physical, sexual and emotional abuse. The purpose of the fundraising project is to assist the home in anyway possible through the donation of cash, toiletries, clothes etc. Cape Argus Cycle Tour: EOH Western Cape sponsored the Chapman s Peak Refreshment Station for the Argus Cycle Tour together with the EOH Group. This fundraising event is organised by the Rotary Club who in turn then distribute the funds to various charities requiring assistance. Internal Joint Learnership EOH Western Cape and MIT: The joint sponsorship between EOH Western Cape and MIT of a black school leaver has been undertaken in the past year. The school leaver would not have had the
5 5 opportunity to study further or pursue a formal career. The process was started in June 2005 with the 2 companies jointly sponsoring training courses for the school leaver. On completion of the training, the school leaver was appointed for a year long contract at MIT and is being mentored through his experiential learning process. It is hoped that he will be permanently employed after the completion of the year contract. Cape Times/FNB Big Walk: EOH Western Cape sponsored the entrance fee for any staff member wishing to take part in this annual event. The purpose of the Big Walk is to raise funds for charity. Proceeds are distributed by the Rotary Club of Claremont and were donated to Habitat for Humanity and the South African Guide Dog Association. Donation to Drakenstein Hospice in association with Vital Health Foods: A donation of R3000 was made by EOH Western Cape to Vital Health Foods on behalf of their fundraising effort for the Drakenstein Hospice. This hospice provides comprehensive palliative home-based care for approximately 170 underprivileged families who do not have the means to care for themselves. These families, including many children, include those suffering from HIV and cancer. The Drakenstein Hospice relies on the community to provide them with financial assistance in order to care for these people. Donation to Smiling Face Project in association with Continental China: A donation was made to Continental Chine on behalf of EOH Western Cape for their fundraising effort for the Smiley Face Project. This project was formed by the staff of Continental China who was raising funds for the Steinthal Children s Home situated in Tulbach. Worlds Aids Day: A donation was made by EOH Western Cape to Wola Nani Red Ribbon Campaign in celebration of World Aids Day. Wola Nani is a Cape Town based NGO working towards improving the quality of life for HIV positive clients through psychological support and access to income generation opportunities. Surf-lifesaving Proficiency Award (SPA): This program is to select a group of disadvantaged teenagers from the Table View and Atlantis areas and provide instruction and guidance to prepare them to obtain their Surf-Lifesaving Proficiency Awards (SPA). The reason M-IT chose lifesaving is because it presents an opportunity to develop character and self-confidence that will assist a young person in his/her career. The program started on the 1 st of February 2005 and completed on the 23 rd of October M-IT contributed R out of the total cost of R WITS STEP (Student Teaching Educational Program): M-IT participated in this project that provides education for disadvantaged teenagers at high school level. These pupils were selected from the following areas: Soweto, Alexandra, Diepsloot, Orange Farm, Vaal and the East Rand. Thabang Primary School: This sponsorship was through the Nelson Mandela Foundation. M-IT supplied them with an IT infrastructure, computers etc. WITS sponsorship of 2 students: M-IT sponsored R in July 2005 for 2 Zulu students to study at WITS. Children s Shelter: Futuristix is involved with a children s shelter in the Roodepoort area. The project is called the Right Now Youth Foundation (Charity registration number #071263NPO) and currently provides a home for approximately 50 children ranging in age from toddler to teen.
6 6 Tulip High School Sponsorship: Futuristix in directly responsible for sponsoring 11 children attending Tulip High School in Roodepoort. The sponsorship covers the annual school fees as well as stationery requirements. Fun-run for disabled children: Softworx participated in sponsoring of a fun-run for disabled children organised by the Faculty of Medicine, University of Pretoria. The aim of the fun-run is a way of making the public aware of children with disabilities and how important it is to care for these children. Super Group Charity Golf Classic: J-Enterprise contributed R to the SI/Super Group Charity Golf Classic 2005 in July The contributions go towards the Super Group 2005 Corporate Social Responsibility Fundraising Drive. Murray and Roberts Golf Day: J-Enterprise contributed R towards the Murray & Roberts Child Gold Day in November South African Business has a paramount role to play in transforming our society. The long process is a must if we want to create a sustainable better place for all our children. EOH is committed to this process!
7 7 NEWS RELEASES Extract from EOH Interim Financial Results Press Announcement Thursday, 23 March 2006 The implementation of the broad-based EOH PDI employee ownership trust has also been completed during the reporting period. The EOH Mthombo Trust is now fully operational. With the shares transferred to the trust, EOH now has 25.1% black ownership. 38% of EOH employees are PDI s, so is 40% of our board. In addition to this, EOH is making progress in our 7-point strategy of equity ownership, management and control, employment equity, skills development, preferential procurement, enterprise development and corporate social investment. We see transformation as an ongoing process to which all our people are committed and are involved in, says Bohbot. Extract from JSE SENS ANNOUNCEMENT Date: 21/09/ :00:18 AM Produced by the JSE SENS Department EOH: EOH - Audited Financial Report For The Year Ended 31 July 2005 Through the creation of the Mthombo Trust for the group's PDI (previously disadvantaged individuals) employees, which currently represent 35% of the total staff complement, and the M-IT merger into EOH, we now have an empowered business in the areas of broad based equity, employee profile, board representation and operational management. EOH believes that the new reality forms only the base from which the organisation will continue to transform. Asher Bohbot (Chief Executive Officer) 21 September 2005 REGISTERED OFFICE Block D, Gillooly's View, 1 Osborne Lane, Bedfordview, 2008 Tel: (011) , fax: (011) , website: info@eoh.co.za DIRECTORS Dr Mathews Phosa (Non-executive Chairman), Asher Bohbot (Chief Executive Officer), Rob Sporen (Dutch), Lucky Khumalo, Jane Thomson, Ken Cullinan, John King, Dion Ramoo, Nkosinathi Khumalo, Steven Evans.
8 8 Business Day & The Star, Thursday, 22 September 2005 Business Day Thursday, 23 March 2006
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