Our kids starve as G4S sits on our money, workers fret

Frustration is building up among G4S Secure Solutions workers who are supposed to get paid their share of R20m flowing from a black economic empowerment deal concluded 17 years ago.

In November, the B-BBEE Commission ordered that G4S Secure Solutions pay workers R20m for the 13% stake they’ve held in the company since 2005.

The money was paid to the trust and the commission confirmed receiving proof of payment.

However, no payments have been made to the 3,500 workers who are beneficiaries.

“We do not know why but the company clearly does not want to pay our money. We want our money. That is the only thing that we need as beneficiaries. Workers are frustrated and some of the beneficiaries have even died without receiving the money.

“Our families are suffering while there is money that belongs to us that can make a difference. But I must assure you, we will not lose hope,” said Johannes Masemola, a representative of the beneficiaries.

Masemola said they had started consulting lawyers in order to see if they could not get a court order to compel G4S Secure Solutions to pay.

The company announced in 2005 that it had given its workers a stake through G4S Staff Share Trust, which improved its BEE status.

But years later, the company said no dividends could be paid to workers as the financial performance had not met the required criteria and therefore the trust had not accumulated any distributable reserves to enable payment to beneficiaries.

Workers took the matter to the commission and it found that while dividends had not been declared over the years, significant benefits had flowed to directors and key personnel at the company. Investigators found that the company did not follow the principles of empowerment since the deal was secured in 2005.

The commission found that G4S Secure Solutions consistently claimed full BEE points for the 13% share owned by the workers through the trust. It further found that the deal resulted in the beneficiaries only owning shares on paper but with no access to the relevant information relating to the shares.

The commission recommended that the company must appoint worker representatives to the trust, which it has done.

G4S Secure Solutions was also expected to issue an apology, and published it on its website. However, when it came to payment, the commission instructed the company to only provide proof of the R20m, which was supposed to be paid into the workers’ trust. The commission confirmed earlier this year that it had received the proof.

G4S Secure Solutions MD Suveer Gajoo said the company was still working with the trust to finalise the beneficiary list.

“Payment to the beneficiaries is the responsibility of the trust. G4S has complied with BEE Commission recommendations and paid the R20m to the trust. Each beneficiary will receive the same amount because the amount payable to them by the trust will be distributed to the beneficiaries equally,” Gajoo said.

B-BBEE Commission spokesperson Mofihli Teleki said G4S Secure Solutions had indicated during investigations that it wanted to buy back the 13% stake.

Teleki said the commission could not stop the parties from transacting, but said it would be the decision of the employee trust whether it wanted to sell back the shares.

“The commission is thus closely monitoring this process to ensure that the interest of employees as beneficiaries are protected… Once the sale of the shares back to G4S is concluded, the purchase price will also be paid into the trust and will form part of the distribution to beneficiaries when distributions are made.

“The commission only closes a matter once it is satisfied that all recommendations have been implemented,” Teleki said.

dlaminip@sowetan.co.za