wealth
BBBEE
Industry overview
The gaming and leisure industry was a pioneer in bringing one of the first “transformation” or “industry charters” to the sector in terms of the originally promulgated BBBEE Act, together with its own broad-based score card. The Act and charter have since been surpassed and codified by the DTI’s Codes of Good Practice, to which the industry now wholly subscribes.
The industry as a whole has always subscribed to the use of broad-based score cards and there are in excess of 33 presently being utilised as measures of any one company’s BEE credentials. The conditions attached to the granting of any casino operating licence are strongly focused on adherence to the broad-based BEE principles of:
- equity and ownership
- management
- employment equity
- skills transfer and development
- enterprise development
- preferential procurement.
The BEE undertakings given by any successful bidder have always been entrenched in the terms and conditions of the licence itself. The Western Cape Gambling Board is vigilant in monitoring the compliance with such principles by any licence holder on a national level and regularly conducts audits so as to enforce these provisions. Not one licence holder, SISA included, has breached any of the agreed licence terms in this regard. The gaming industry has convincingly demonstrated its commitment to BEE which it has embraced since its inception and to which it has devoted substantial resources in securing compliance with the Codes of Good Practice. It is accordingly not anticipated that a further scorecard will be adopted in terms of such Codes of Good Practice as the industry has visibly achieved many of the BEE objectives that have only recently been codified, although the National Gambling Policy Council is looking into this matter. The exigencies of the conditions attached to each of the casino operating licences cannot be accommodated by a charter or non-generic scorecard.
Grand Parade’s BBBEE status
GPI’s very roots and existence is entrenched in BEE, a political and economic imperative in South Africa.
The company emerged as an investment holding company with the primary purpose and goal being to provide a vehicle through which the historically disadvantaged persons resident in the Western Cape could participate in the growth of the gaming industry in the province and simultaneously promote transformation in the leisure industry. From a black economic empowerment perspective it has impeccable credentials.
An internal BBBEE evaluation reflects an overall empowerment rating of 60% calculated as follows:
| Shareholder empowerment | 19% | |
| Employee empowerment | 9% | |
| Employment equity | 15% | |
| Procurement empowerment | 9% | |
| Skills development | 8% |
Corporate social development and enterprise development are conducted through the investments that GPI has significant influence over.
Excluding these two categories, GPI’s overall empowerment rating is 75%.