The Letsema BBBEE shareholding transaction in which Murray & Roberts purchased 10% of its issued share capital on 19 December 2005, offers previously disadvantaged employees, their families and some of the communities in which Murray & Roberts operates, a stake in the company and its future.
Since Letsema was launched, the Murray & Roberts share price has appreciated more than 400%, creating wealth of over R2 billion for the participants. Immediate economic benefits accrue to the beneficiaries through four Letsema Trusts: -
Since Letsema was launched in 2005, wealth of more than R2 billion has been created for participants.
The Letsema Khanyisa Black Employee Benefits Trust (Letsema Khanyisa), another element of the Murray & Roberts BBBEE shareholding structure, was established in order to provide appropriate benefits, on a social and compassionate needs basis, to employees and their immediate families. The underlying objective of the Trust is to facilitate and support socio-economic development for a specific cohort of Murray & Roberts employees.
While several benefits have been considered and applied since the inception of the Trust, the most significant benefit awarded through the Trust has been the Letsema Education Bursary. Through this benefit, Murray & Roberts has been able to award secondary and tertiary education bursaries to the children of qualifying employees. A total of 238 bursaries have been awarded since the introduction of the benefit.
For the period under review, education bursaries were awarded to 158 beneficiaries – 88 secondary school and 70 tertiary bursaries. Of these, 51 bursaries were new awards, i.e. 29 new secondary bursaries and 22 new tertiary bursaries. During the period between 1 July 2011 and 30 June 2012, bursary payments were made for 1149 bursars, with the remaining 9 bursaries on hold due to late registration or suspension.
The projected value of the bursaries for the 51 new awards is R8, 9 million over the next 5 years, with the average secondary school bursary amounting to R18 000 and the average tertiary bursary at R70 000 per annum. The bursaries provide comprehensive support including payments for schools fees and tuition, stationery and textbooks, uniforms and transport as well as accommodation costs where necessary.
LETSEMA SIZWE COMMUNITY TRUST
The Letsema Sizwe Community Trust forms one element of the Murray & Roberts broad-based black economic empowerment (BBBEE) shareholding structure initiated in 2005. Murray & Roberts invested R494 million to extend its black economic empowerment ownership to a broad base and has already impacted the lives of close to a million women, children, youth and people living with disabilities. Through partnerships with reputable development organizations, individuals and communities have been empowered around issues of financial literacy, HIV and AIDS awareness and preventions, food security and leadership. The Trust also supports the development of sport among able bodied and people with disabilities, through the annual Jack Cheetham and Letsema Sports Development Award.
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