HORSERACING operator Gold Circle, which has just reported a record annual turnover, has achieved an “AA'' Empowerdex rating for its contribution to Black Economic Empowerment.
The company engaged the services of top BEE rating company Empowerdex to conduct an evaluation of its BEE programmes in June 2006 and received their final rating certificate and report in October 2006. The Empowerdex rating provides independent, reliable proof of contributions made towards economic empowerment. The company's “AA” rating is described as outstanding compliance with the requirements set out in the Broad Based Black Economic Empowerment Act 53 of 2003 .
The evaluation scored the company's performance on empowerment components including ownership, management, employment equity, skills development, BEE procurement, corporate social responsibility, and enterprise development.
Gold Circle's Executive Director, Phumla Mnganga said: “The assessment of Gold Circle 's BEE status reveals that it is a superior contributor to broad-based BEE and it is commendable that Gold Circle achieved an AA rating in its first evaluation.” Empowerdex rates companies on nine levels of contribution to BEE, ranging from Non-Compliant to AAA+. An AA rating is the third highest rating.
Michel Nairac, CEO of Gold Circle comments: “The evaluation is a useful benchmark that places Gold Circle among the best empowerment companies in South Africa . Gold Circle operates in a highly regulated environment, and it is incumbent upon licensed entities to have a strong emphasis on alignment with government policy objectives. Outstanding BEE compliance is an important accomplishment for the company and a clear indicator of commitment and dedication to the future well-being the country.”
Gold Circle has made great progress considering that the company launched its formal transformation policy only three years ago. The rating puts the company firmly on a journey of good practice regarding transformation.
The Empowerdex rating indicates that Gold Circle , a R1.8-billion turnover company, is ploughing back resources into its own stakeholder and broader communities. It places the company among the top 30 Empowerdex rated companies in terms of BEE practices, making Gold Circle a meaningful contributor to government policy and strategy on BEE.
Ms Mnganga said that the company's transformation initiatives and Corporate Social Investment projects facilitate engagement with various aspects of society in a responsible manner.
KZN Slots, which is owned by Gold Circle and BEE partner Mion Investments, has been awarded a Limited Payout Machine (Slots) route operator licence and is due to start rolling out sites by the end of this year. Manana Nhlanhla, chairperson of Mion said, “This is a huge success for enterprise development. KZN Slots was a clean sheet company which is BEE compliant at every step of the way, including governance at board level, staffing, the manner in which sites are selected, and our overall business strategy.”
A new scheme to encourage horse ownership in previously disadvantaged communities in the Western Cape recently led to the formation of the first majority owned black syndicate.
Management demographics reflect that 53 % of the main Board of Directors and 33% of members of the Regional Chapter boards in the Western Cape and KwaZulu-Natal are Black. The PDI component of the overall staff complement is 86%.
Gold Circle continues to make a substantial investment in skills development, with 170 grooms currently in formal training, funded by the company. Every Black apprentice jockey studying at Gold Circle 's world-renowned Racing Academy at Summerveld now enjoys the benefit of a full bursary.
Some 40% of the company's total procurement of goods and services are sourced from BEE companies.
Gold Circle's Corporate Social Investment program has grown substantially in recent years. The company has funded and organized a successful art competition among schools in KwaZulu-Natal in partnership with the Department of Education. Its transport fleet has been deployed to deliver vital learning resources to schools in partnership with Booksmart SA. In addition, several worthy causes have been supported through Community Projects, including a street shelter for homeless children at Inanda and a wheelchair rugby club.
Gold Circle has also funded the upgrading of an informal rural racetrack for amateur horseracing enthusiasts at Elandskop near Pietermaritzburg, and will stage and sponsor prizes for amateur races at Scottsville Racecourse this year. The company has also sponsored rural racing in Dundee , an initiative supported by the Provincial Government through the Ministry of Sport and Recreation. This is aimed at improving the skills of Black amateur riders and creating an opportunity for them to race under formal conditions.