Empowerment - the foundation of our future

Introduction

Paracon Holdings Limited is a public listed company on the Johannesburg Securities Exchange in the Software and Computer Services sector.

Paracon acknowledges that as a result of the legislative, social and economic inequalities of the past, we have a moral obligation to address the differences that exist in South Africa. Our strategic commitment is multifaceted and encompasses all areas of Black Economic Empowerment.

Paracon views economic empowerment transformation as not just an add-on program, but also as an integral part of our strategy for further growth and development. We will drive our broad-based black economic empowerment transformation policy aggressively through training, education and capacity building of previously disadvantaged individuals.

Ownership Commitment - to uphold the highest ideals

Approximately 19% of Paracon’s shares are held by WDB Investment Holdings, a black broad-based women’s group. This shareholding qualifies Paracon as a “community” or broad-based enterprise which is defined as an enterprise that has an empowerment shareholder who represents a broad base of members such as a local community, or where the benefits support a target group such as black women. Through this process, Paracon is finding renewed strength in diversity. Together with the Black Empowered shareholding of Britehouse, the total black voting rights of the Paracon share is 27%.

About Our Shareholders

 WDB Investment Holdings (Pty) Ltd (WDBIH) started operating as the investment arm of the WDB Trust in 1997.  Its mandate was to create value by building up an investment portfolio and repatriating the profits through to the Trust for disbursement on the Group's social development programs.

 The WDB Trust is a not-for-profit Section 21 organization providing rural women with capital in the form of group loans and basic training.  To date, WDB has a client base of over 30 000 rural women, has loaned more than R60 million, trained over 15 000 women and supported over 16 000 jobs.  Recently, WDB narrowed its focus even further to assist the poorest-of-the-poor families who earn less than R1200 per month.  Since 1991, the WDB Trust has developed a number of new programs to benefit poor rural and peri-urban women, namely:
 
An ICT program that provides women with computer-based literacy program and training
A Business Development program that helps women entrepreneurs run their businesses more efficiently
A Capacity Building program which offers NGOs and Church based organizations training in the WDB Micro-Finance lending methodology.
 
To date, WDBIH has repatriated over R50 million to the Trust.  WDBIH is a wholly owned subsidiary of the WDB Trust.
 
WDBIH is also committed to ensuring the economic empowerment of women within its underlying investments through placements, promotion opportunities and skills transfer.

Management

In order to achieve maximum allocation in terms of the DTI Code of Good Practice released in February 2007, Paracon has concentrated on increasing black representation at management levels. Whilst black board participation is currently at 33%, the level of black executives currently involved in daily operations is at 25%. However, Paracon remains committed to achieving the full target set out in the Codes.

Employment Equity - cementing relationships

Paracon is committed to the requirements of the Employment Equity Act, Skills Development Act and the Skills Development Levies Act. Paracon has developed a BEE policy which provides the basis for the company’s human resource activities. Paracon places particular emphasis on education and training, and in addition, recognizes and appreciates the diversity of cultures existing in the company. Paracon continually seeks to redress historical imbalances to enable employees to compete on equal terms, and strives to be a Best Practice Employer as defined by the Department of Labour.

Skills development and training - seeing the big picture

The Paracon Learnership program was introduced in February 1999 and was established to address the shortage of IT skills and to accommodate HDSA’s in an empowerment initiative.

Paracon’s corporate clients were integral to the success of this initiative. The client provides mentorship and work opportunities for the trainee whilst Paracon is responsible for the expenses incurred. The improvement and establishment of reputable training facilities that have successfully received government grants has made a huge improvement to the concept of the learnership program.

Jonda Learnership Academy is such an institution, accredited by Isett Seta, with over 640 graduates passing through its doors since its inception.

In September 2006, Paracon was offered the ideal opportunity to contribute to a program which, along with supporting the growth and expansion of the ICT industry, was aligned with Paracon’s business strategies.

Paracon teamed up with Jonda to offer the NQF Level 5 IT Support Technician qualification. Currently, Paracon and Jonda jointly sponsor 50 students over and above the government grant allocated to Jonda, and have successfully secured employment for 60 Jonda technicians.

 

Affirmative Procurement - always has pride of place

The goal of our procurement policy is not that of simply implementing procedures but rather that of implementing a defined strategy aimed at supporting the growth of BEE suppliers. In accordance with the DTI code of Good Practice released in February 2007, Paracon has maintained the required target of 50% suppliers conforming to the BEE regulations. Our policy is to enter long-term agreements with these suppliers in order to assist in the sustainability of the business.
SMME Investment - our faith in the future

Paracon Holdings recognizes that black SMME development is integral to the ICT industry.

Paracon’s SMME policy and procedures are therefore based on investments in black SMME businesses where we play a role in assisting the SMME with operational, financial and infrastructure support.

In November 2002, Paracon SA (Pty) Ltd, a subsidiary of Paracon Holdings Limited, acquired 49% equity stake in an SMME IT company, Zenzele (Pty) Ltd. Zenzele focuses on providing the ICT sector with Affirmative Action candidates into both the public and private sector. Paracon supplies financial support, operational guidance and infrastructure to this business process.
Social Responsibility

A prosperous, stable and healthy environment is what we would all like to live in, raise our children in, and conduct our business in. Globalization, free trade and a strengthening economy are all issues we need to be aware of and help along in any way possible. That’s where we believe that business and society are in a “marriage”; they are interdependent of one another. They help each other along and in turn strengthen our communities and encourage growth – economically, socially and environmentally. Together, they should be seen as part of the solution to alleviate poverty, environmental degradation and a failing economy.

That is why Corporate Social Responsibility (CSR) is crucial. CSR is an integral part of any business and is a measure of the company’s standing as a good corporate citizen. It is important not only to recognize this need for CSR, but to align it to one’s business strategies and identify projects which support the nature of one’s business. Therefore, in Paracon’s case, it is important to assist in building the ICT sector and supporting our growing generation of young people.

Current beneficiaries include:

 

  • Jonda Learnership Academy
    A well-established learning institution, Jonda renders education and training services to address needs in both the private and public sectors. The courses and programs on offer are customized to and aligned with registered unit standards and qualifications on the National Qualification Framework (NQF). Their approach in course delivery, assessment and moderation procedures adhere to SAQA regulations and requirements.

    Paracon Jonda Graduation
    Paracon’s partnership with The Jonda Learning Academy (“Jonda”), accredited by Isett Seta, was intended to boosts the national skills base of the ICT industry. To date Jonda has successfully trained 651 candidates, 48% of whom are female and 52% male.

    Paracon is proudly associated with Jonda and provides practical onsite experience for graduates as well as supplying Jonda with IT equipment for training. “The partnership with Jonda ensures a tertiary education for matriculants who are then provided with practical experience as Support Technicians in the ICT sector,” says Adriaan Louw, MD Paracon Networking Division

    At a recent televised graduation ceremony sponsored by Paracon, Minister of Labour Membathisi Mdladlana delivered the key note address, 180 Jonda learners graduated with National Qualification Framework (NQF) level 5 certification. Louw said the Minister emphasised that training institutions have an obligation to assess the skills required in the marketplace and to channel students to the appropriate courses to address these skills shortages.

    Mireille Levenstein, Group Financial Director concludes: “All key roleplayers such as education institutions, government and the private sector have an obligation as responsible citizens to jointly drive skills training and job placement for graduates, and so expand the skills base in South Africa.”

 

  • Action for the Blind and Disabled
    ACTION is a non-profit organization supported by the community, and is committed to educating blind and disabled children to a level where they are fully competent in using PCs, and able to write Microsoft Accredited exams, with the ultimate aim of gaining employment and contributing to their communities.
    www.action4.org.za