Empowerment not selling well

Retail companies have been dragging their feet on empowerment and they should be held to account, says a leading shareholder activist.

While Spar last week announced it intended selling 10% to black shareholders and Massmart had already employed a strategy, JD Group and Pick n Pay were pinpointed as among major failures in empowerment.

Shareholder activist Theo Botha asked the Black Management Forum's annual conference on Friday who could hold to account listed companies that have not embracedenvironmental, social and government issues and broad-based black economic empowerment.

He said that since the government employee pension fund may hold up to 20% in many retailers, it had to be concluded that it had, via its asset manager the PIC, failed to promote empowerment among retailers. He called for other groups, such as the BMF, to get more involved in changing the picture.

He said while Spar last week said it intended selling 10% to black shareholders, most others did not have plans.

Spar's plan will provide a R1-billion BEE slice and Massmart embraced a BEE plan of R900-million in 2006. Massmart is struggling to get its sale to Walmart approved by government because of concerns over procurement and jobs.

But JD Group, said Botha, had not moved to empower black members. Pick n Pay had no black empowerment policy.