Sekunjalo Investments

Sekunjalo Investments

Type	Public
Traded as	JSE: SKJ
Industry	Diversified investments
Genre	Private Equity
Founded	May 1996[1]
Founder	Iqbal Survé
Headquarters	Cape Town, South Africa
Revenue	R569.2 million (FY 2013)[1]
Operating income	R58.7 million (FY 2013)[1]
Net income	R30.35 million (FY 2013)[1]
Number of employees	610[1]
Website	www.sekunjalo.com

Sekunjalo Investments is a South Africa-based private equity firm specializing in acquisitions, PIPEs, and buyouts. It has principal operations in Publishing, Internet, fishing, healthcare, pharmaceuticals, telecommunication, financial services, aquaculture, biotechnology, enterprise development, events management, travel.

The company was founded by Iqbal Survé^[2] in 1996 with the aim of investing and assisting Black-owned businesses.

Business model

Sekunjalo Investments model is to only invest in black-owned companies where it can gain a controlling interest in the company's management and strategic decisions. A stated key operating philosophy of the company is the "upliftment of previously marginalised groups by creating employment, emphasising development and transferring of skills."^[3]

Investments

Controversy

Sekunjalo Marine Services Consortium tender

In December 2011 Sekunjalo subsidiary was awarded an R800 million (equivalent to roughly US$98 million in 2011)^[6] tender to combat illegal fishing along the South African coastline. Three months later the Competition Commission stated that it was looking into allegations of bid rigging by the company after it emerged that "the company had submitted four separate bids under different company and consortium names, which were all accompanied by Sekunjalo’s 2010 annual report."^[7] Additional concerns were raised over possible conflict of interests that neither the company nor the Department of Agriculture Forestry and Fisheries adequately addressed over one of its holdings, Premier Fishing, also having a fishing licence at the time when the contract was awarded.^[7][8]

On 5 December 2013, the South African Public Protector released its report on accusations that the contract to manage South Africa's fleet of fishing patrol vessels was improperly handled and awarded to Sekunjalo's Marine Service Consortium. The report found that the awarding of the R800 million a year contract was improper and did not comply with the department of Agriculture, Forestry and Fisheries supply-chain management requirements.^[9] The Public Protector found that the head of the department's tender evaluation had been “irrational, biased and improper” in its awarding of the bid to Sekunjalo.^[10]

The contract was previously held by rival marine services firm Smit Amandla Marine until it expired in 2011 and a new bidding process started. Smit Amand Marine complained that its contract bid application had been leaked to Sekunjalo. The contract was initially awarded to Sekunjalo only to withdraw it and instead gave Smit Amandla one month to hand over their operation to the South African Navy. The department then found that the Navy could not properly maintain the fleet of six patrol vessels and issued an emergency tender to Nautic SA and Damen Shipyards.^[9]

Accusations of undue interference at the Cape Times

Right2Know Campaign and other civil society organisations hold a picket outside Newspaper House to protest against the replacement of Cape Times editor Alide Dasnois. Also present at the demonstration are counter-demonstrators (waving printed red, white, and black placards) demonstrating in favour of the replacement of Dasnois.

On 6 December 2013, the Cape Times led with a front-page article on the Public Protector's report highlighting irregularities in the awarding of the Sekunjalo Marine Services Consortium tender. The same day, the newspaper's editor, Alide Dasnois, was dismissed from her post by Iqbal Survé, executive chairman of Sekunjalo Investments.^[11][12] Since August 2013, Sekunjalo Independent Media Consortium has held 55% of Cape Town-based Independent News and Media SA (INMSA) with the remaining ownership made up of Chinese and Public Investment Corporation of South Africa (a South African government owned company).^[4] Two Chinese State Owned Enterprises (China International Television Corporation and the China Africa Development Fund) invested R400 million in the deal to acquire 20% of the Newspaper. The Public Investment Corporation of South Africa invested R500 million to acquire a 25% share.^[13]

The Cape Times is one of the titles in the INMSA stable.^[14]

Sekunjalo Investments has threatened to sue the paper, Dasnois, and journalist Melanie Gosling over the tender story, but Survé has denied that Dasnois' removal was connected to the article. He instead pointed to the title's declining circulation figures as his primary motivation.^[15] Compounded loss of sales, between 2008 and 2012, amounted to 28%, he said.

In response to a perceived attack on press freedom, several organizations have issued statements of support for Dasnois and of concern over editorial independence at the Cape Times. These include Index on Censorship, the International Federation of Journalists, the SA Centre for PEN International, the SA National Editors Forum, the Freedom of Expression Institute, and the Right2Know campaign.^{[16][17][18][19][20]}

In September 2014 Dasnois filed papers in the South African Labour Court for unfair dismissal and for breech of contract.^[21]

Accusations of pro-ANC bias

In January 2015 the company and its director Iqbal Survé were accused of pro-African National Congress (ANC) political bias in how they operated Independent News and Media SA and its subsidiary newspapers such as the Cape Times. Although there had been lingering concerns over press freedom at Independent Media following Skunjalo's acquisition of the company partly due to the 2014 firing of Cape Times editor Alide Dasnois and partly due to Survé's close relationship with the ANC the catalyst for the accusation was "group Executive Editor Karima Brown and Editor of Opinion and Analysis Vukani Mde's decision to wear ANC colours at an ANC rally."^[22] The accusations were first made by former Independent News columnist Max du Preez in his open resignation letter as reasons for his refusal to work for the company any longer.^[23]

Karima Brown, the Chief Content Officer of Independent Media replied to Du Preez's resignation letter by rejecting accusations of political bias, as their publications still feature a number of articles critical of the ANC government, claimed that Du Preez had inaccurately accused Schabir Shaik and President Jacob Zuma of pursuing a corrupt relationship, and that Du Preez and those who have supported him were motivated by racism.^[24][25]

Opposition leader Helen Zille stated that Skunjalo's operation of Independent media was an example of state capture that threatens both the independence of the media and the development of democracy in South Africa.^[26]

See also

• List of South African media

References

External links

• Corporate Website