Some giant construction companies have been compelled to hand 40 percent of their shares to black South African after it was authenticated they participated in corrupt tender processes.
According to reports, government reached an agreement with the construction giants to pay for their corruption sins by helping black owned companies grow their businesses, and selling not fewer than 40 percent of their shares to black people.
Precisely, the companies will choose between mentoring at least three black-owned businesses in skills development and selling at least 40 percent of their civil engineering and construction units to black-controlled enterprises.
BuzzSouthAfrica learnt that the commitment of the agreement for the construction companies was valued at over R9 billion.
The construction firm include Group Five, WBHO, Basil Read, Stefanutti Stocks, Aveng and Murray and Roberts. They will also, be contributing R1.5 billion to government for development projects over the next 12 years.
Meanwhile, South Africa’s Trade and Industry Minister, Rob Davies has welcomed 3M’s decision to invest R120 million into its operation in South Africa.
According to the Minister, the investment is a major boost for the manufacturing sector because the enhancement is designed to improve productivity and will position the Maple Park plant in Pamona, Kempton Park, as one of the globally competitive locations within 3M.
Davies added that the investment will create jobs for an additional 75 skilled individuals, and offer more opportunities across the company.
“Such investment is important and demonstrates the confidence that 3M has in the long-term future of South Africa as a regional manufacturing hub,” he said.
Managing Director of 3M South Africa, Ismail Mapara expressed similar sentiment saying the investment in manufacturing and the creation of new jobs will further cement 3M’s history and commitment to South Africa’s growth.