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Group 5: Enterprise Development
Posted by Daniel Makhura on 21 July 2017 8:15 AM SAST
Information about the above.
The enterprise development section of the Construction Charter was designed to correct the lack of capacity in the construction sector. The spirit of black economic empowerment and enterprise development is aimed
at ensuring that companies being developed become independent sustainable businesses.
In this context, Group Five and its one BEE ownership shareholder, iLima, are continuing to grow the business of iLima. Where growth and independence has been achieved, Group Five has lessened
its involvement.
MANAGEMENT AND LABOUR ASSISTANCE AND SKILLS TRANSFER
•
Group Five no longer has one of its executive directors on the board of iLima, as iLima has developed sufficient capacity and stability through the experience and skill that Group Five provided to its board, management and employees
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After an 18-month period of using Group Five’s financial resources, including a senior financial manager, iLima has since appointed its own financial personnel, including a finance director
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The tendering and estimating management of Building continue to provide input to ensure that iLima optimises efficiency and profitability on specific contracts while bringing about effective solutions for
its clients
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iLima and Group Five have agreed to quarterly due diligence processes being carried out by Group Five management to evaluate and ensure the growth and sustainability of iLima
ESTABLISHMENT OF ADMINISTRATIVE SYSTEMS
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This is an ongoing process which should continue at an intense level for the next six months. Under this agreement, iLima’s administration and site personnel are undergoing training in financial, IT, payroll and site administration to achieve better utilisation of policies and procedures within the iLima group
of companies
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During F2006, the Group Five financial and job costing system, JD Edwards, was fully implemented at iLima Projects
FINANCIAL ASSISTANCE
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iLima still enjoys a total of R119 million worth of bonds and guarantees made available to them by Group Five. The facility has allowed iLima to grow significantly within the construction industry
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Group Five has advanced a total amount of R50 million as loans to iLima to assist with working capital
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In some of their major contracts, iLima has leased various items from Group Five’s plant business unit for which rental at market related rates is being charged
•
With the backing and support of Group Five, iLima was able to obtain a CIDB rating in category 8 in
terms of the CIDB Act
In the year under review, iLima Projects’ order book has grown from R440 million to R450 million.
The group is in discussions with additional emerging contractors as it seeks to grow its enterprise development base.
