Sekunjalo Investments

Sekunjalo Investments
Private
Industry Diversified investments
Genre Private Equity
Founded May 1996[1]
Founder Iqbal Survé
Headquarters Cape Town, South Africa
Subsidiaries African Equity Empowerment Investments
Website www.aeei.co.za
African Equity Empowerment Investments
Public
Traded as JSE: AEE
Industry Diversified investments
Genre Private Equity
Founded April 2015
Headquarters Cape Town, South Africa
Revenue Increase R258.8 million (FY 2015)[2]
Increase R45.9 million (FY 2015)[2]
Increase R35.3 million (FY 2015)[2]
Total assets R1245 million[2]
Number of employees
 2150[3]
Parent Sekunjalo Investments
Website www.aeei.co.za

Sekunjalo Investment Holdings (parent company of African Equity Empowerment 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[4] in 1996 with the aim of investing and assisting Black-owned businesses. In April 2015 all of Sekunjalo's investment's except it's 55% ownership in Independent Media SA was spun-off into a new company, still owned by Sekunjalo Investments, known as African Equity Empowerment Investments.

Business model

Sekunjalo's Investment model is to seek above average returns in their portfolio and to have scalable social impact especially on the African continent. The Group is committed to the "upliftment of previously marginalised groups by creating employment, emphasising development and transferring of skills."[5]

African Equity Empowerment Investments

In April 2015, Sekunjalo Investments Limited (SIL) was renamed, African Equity Empowerment Investments (AEEI) to avoid confusion with its mother company, Sekunjalo Holdings. Holdings became a privately held company whilst AEEI took Sekunjalo's publicly traded status on the Johannesburg Stock Exchange trading under the ticker AEE. Sekunjalo Investments kept its 55% stake in Independent News and Media SA but all other investments were spun-off into AEEI so as to "better reflect the underlying businesses and investments of the Group going forward and to differentiate from the private holding company."[6] Founder Iqbal Survé stepped down from managing all investments held by AEEI so as to focus on the company's media holdings.[7]

Media interests

Sekunjalo Independent Media Consortium is a privately owned and separately controlled segment company that is not directly related to the publicly listed African Equity Empowerment Investments segment of the Sekunjalo Investments parent company. Sekunjalo holds 55% ownership of Cape Town-based Independent News and Media South Africa (INMSA) with the remaining ownership made up of Chinese and Public Investment Corporation of South Africa (a South African government owned company).[8] 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.[9] The Public Investment Corporation of South Africa invested R500 million to acquire a 25% share. The purchase of the South African-based media group from Independent News and Media was concluded in August 2013 for €150-million (R2 billion). According to the Mail and Guardian Sekunjalo Independent Media's 55% purchase of INMSA was largely funded with a loan from the government owned Public Investment Corporation and Government Employees Pension Fund.[10]

Investments

African Equity Empowerment Investments

Controversy

Sekunjalo Marine Services Consortium tender

In December 2011 the Sekunjalo subsidiary -Sekunjalo Marine Services Consortium- was awarded an R800 million (equivalent to roughly US$98 million in 2011)[12] 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."[13] 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.[13][14]

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.[15] 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.[16] In the final report Sekunjalo was largely cleared of charges of collusion and corruption with the Public Protector deciding to refer the matter to the South African Competition Commission for further investigation.[17]

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.[15]

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 the 5th of December 2013 former president and struggle hero of South Africa Nelson Mandela passed away. Most newspapers in South Africa, and major international newspaper titles dedicated their front pages to coverage of Mandela's death. Except for Die Burger and the Sekunjalo owned Cape Times [18] which instead led with a special edition that wrapped around the regular edition covering Mandela's death that was regarded by TIME magazine as one of the best covers from around the world on the event.[19][20][21] On 6 December 2013, the day after Mandela's death and at the same time other publications were covering the event, 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.[20][21] One of the stated reasons by Survé for Dasnois's dismissal was that Mandela's death was not on the front page of the Cape Times.[22]

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.[23] Compounded loss of sales, between 2008 and 2012, amounted to 28%, he said. The Cape Times is one of the titles in the Sekunjalo owned INMSA stable.[24]

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.[25][26][27][28][29]

In September 2014 Dasnois filed papers in the South African Labour Court for unfair dismissal and for breech of contract.[30]

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."[31] 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.[32]

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.[33][34]

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.[35]

The company was again criticised for its close links with the ANC and of allegedly having an anti-Democratic Alliance (DA) bias in a report on Al-Jazeera in March 2016.[36] The DA for its part was accused of trying to silence criticism from the Cape Times by threatening to cancel the City of Cape Town's subscription to that publication. In the same report the Cape Times rejected any accusation that it or any Sekunjalo owned publication was reporting unfairly towards any opposition political party.[36]

See also

References

  1. ↑ "Sekunjalo Investments Ltd". Business Week. Retrieved 17 December 2013.
  2. 1 2 3 4 "AEEI: UNAUDITED INTERIM RESULTS 2015" (PDF). African Equity Empowerment Investments. 28 February 2015. Retrieved 29 July 2015.
  3. ↑ "AFRICAN EQUITY EMPOWERMENT INVESTMENTS (AEEI), formerly SEKUNJALO Investments Limited". AEEI. 23 March 2015. Retrieved 29 July 2015.
  4. ↑ "Company website". Sekunjalo Investments. Retrieved 17 December 2013.
  5. ↑ "Company website: Investment Philosophy". Sekunjalo Investments. Retrieved 17 December 2013.
  6. ↑ Smith, Carin (16 April 2015). "Sekunjalo rebrands to avoid confusion". News 24. Retrieved 29 July 2015.
  7. ↑ Hasenfuss, Marc (30 April 2015). "AFRICAN EQUITY EMPOWERMENT INVESTMENTS: After the surge". Financial Mail. Retrieved 29 July 2015.
  8. 1 2 Mckune, Craig (15 August 2013). "Chinese companies scoop shares in Independent News". Mail and Guardian. Retrieved 19 December 2013.
  9. ↑ Sam Sole and Craig Mckune (28 August 2014). "What's black and white and in the red all over?". Mail and Guardian. Retrieved 8 September 2014.
  10. ↑ Myburgh, James (11 January 2015). "How independent is Independent News & Media? Not very ...". Rand Daily Mail. Retrieved 3 February 2016.
  11. ↑ "About IOL". Independent Online. Retrieved 17 December 2013.
  12. ↑ "US Dollars (USD) to South African Rands (ZAR) exchange rate for December 30, 2011". exchange-rates.org. Retrieved 16 January 2014.
  13. 1 2 "Sekunjalo fishes for tender". Benjamin, Chantelle. Corruption Watch. 15 March 2012. Retrieved 16 January 2014.
  14. ↑ du Toit, Deetlefs (4 December 2011). "Why did Sekunjalo receiving R1bn fishing patrol tender? - DA". Democratic Alliance. Retrieved 16 January 2014.
  15. 1 2 "Madonsela recommends disciplinary action against Joemat-Pettersson". Business Day. 5 December 2013. Retrieved 19 December 2013.
  16. ↑ "Public Protector lays down law". Cape Times. 6 December 2013. Retrieved 19 December 2013.
  17. ↑ Blaine, Sue & Vecchiatto, Paul (6 December 2013). "Sekunjalo off the hook over collusive tendering". Business Day. Retrieved 3 February 2016.
  18. ↑ Herbst, Ed (30 September 2015). "The Cape Times: From hero to zero". Politics Web. Retrieved 6 November 2015.
  19. ↑ "The Best Nelson Mandela Covers From Around The World". TIME magazine. 6 December 2013. Retrieved 6 November 2015.
  20. 1 2 "Cape Times editor fired after Joemat-Pettersson report". Mail and Guardian. 8 December 2013. Retrieved 19 December 2013.
  21. 1 2 Vecchiatto, Paul (9 December 2013). "Firing of Cape Times’ editor raises eyebrows". Business Day. Retrieved 19 December 2013.
  22. ↑ "Dasnois papers: Survé made rants and threats". News24. 28 January 2015. Retrieved 6 November 2015.
  23. ↑ Surve, Iqbal (9 December 2013). "Statement by executive Director Dr Iqbal Surve". Independent Media SA. Retrieved 19 December 2013.
  24. ↑ SAPA (21 August 2013). "Sekunjalo finalises Independent Media purchase". Mail and Guardian. Retrieved 19 December 2013.
  25. ↑ van der Westhuizen, Christi (13 December 2013). "South Africa: Cape Times in crisis as editor fired after corruption story". Index on Censorship. Retrieved 19 December 2013.
  26. ↑ "Demonstration in South Africa calls for reinstatement of Cape Times editor". ifex. 17 December 2013. Retrieved 19 December 2013.
  27. ↑ "SA Pen concerned by Cape Times editor's dismissal". The Sowetan. 17 December 2013. Retrieved 19 December 2013.
  28. ↑ Adriaan Basson; et al. (9 December 2013). "SANEF shocked and concerned at axing of Alide Dasnois". South African National Editors Forum. Retrieved 19 December 2013.
  29. ↑ "FXI is deeply concerned about suggestions of inappropriate managerial interference in the editorial independence of the Cape Time". 10 December 2013. Retrieved 19 December 2013.
  30. ↑ SAPA (27 September 2014). "Ex-Cape Times editor files papers in court". News24. Retrieved 21 January 2015.
  31. ↑ Phumzile Van Damme (20 January 2015). "Karima Brown & Vukani Mde's ANC colours: Press Ombudsman should adjudicate - DA". Democratic Alliance. Retrieved 21 January 2015.
  32. ↑ Max du Preez (15 January 2015). "A letter to Karima Brown". Daily Maverick. Retrieved 20 January 2015.
  33. ↑ Karima Brown (16 January 2015). "Du Preez using column to score cheap points". Independent Media. Retrieved 20 January 2015.
  34. ↑ "Independent Media: The Iqbal-ites strike back". Politicsweb. 18 January 2015. Retrieved 20 January 2015.
  35. ↑ Helen Zille (18 January 2015). "An open letter to Iqbal Survé - Helen Zille". Democratic Alliance. Retrieved 20 January 2015.
  36. 1 2 Jacob Zuma's friends and foes in South Africa's media - The Listening Post (Feature) (Video). 5:27: Al Jazeera: English. 20 March 2016.

External links

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