Detractors will always be there - Shakantu
WHILE unfounded allegations continue to be hurled towards the Inyatsi Group Holdings, its chairman is steadfast in delivering service excellence to the consumers and the nation.
Michelo Shakantu this week told the publication that he was not surprised by the constant negative media coverage and unfounded allegations being thrown his way.
The business maverick who has overseen the expansion of the group to at least nine African countries says the negative comments are an indication that they are on the right track.
“Detractors and naysayers will always be there. People throw stones at trees that bear fruits. For as long we continue to bear fruits, people will throw stones at us,” he said.
The Open Secrets reports which have been carried out by South African publication Bussiness Day also made allegations of improper conduct and claimed that Shakntu and his former business partner, the late Victor Gamedze were involved in money laundering following the sale of Eswatini Mobile shares.
The sale took place when the business partners needed to raise more capital to sustain the business. Following their initial investment of E100 million, the partners had to dig deeper into their pockets to continue pumping in the money. They used their existing businesses and personal assets as surety to seek
more funds.
“We had to open several credit lines using our businesses to set up the business. The credit lines were well over E200 million using the companies for us to get to the first call that was made in July of 2017,” Shakantu said.
Invested
Having invested over E300 million of their own cash, the partners found themselves sitting with a conundrum, they needed to scale up and grow the business but it had hit them hard in the pockets already.
“We went out to the market and sold shares to the Provident Fund which bought 20 per cent and PSPF also bought 20 per cent. We retained 60 per cent. That is how the two came in as partners,” Shakantu said.
The proceeds from the sales of the shares helped the partners pay back some of the loans they had taken. Tragedy would however strike and throw a spanner in the works of the progress that was being made.
Gamadze was killed in January 2018, leaving Shakantu with having to deal with the credit liabilities that existed in the business.
“I was left with a burden of about E300 million worth of liabilities between the two of us. I’m still paying for that liability to this day. That has been part of the journey for me,” he said.
Despite the liabilities that exist, the business has continued to require cash injections over the years to get it to where it currently is. Shakantu said the joining of the Provident Fund and PSPF assisted in carrying some of the required investments to continue to grow the business.
Shakantu added that from the hum
ble beginnings to where they are now, they have managed to bring quality service to emaswati at relatively low prices. But that has not stopped the flurry of attacks directed at him and the group he leads. The group has a footprint in 11 African countries and has expanded its portfolio to include healthcare, media, telecoms, construction, retail and mining to mention a few.
Speaking on the Eswatini Mobile story and what the group continues to do, Shakantu said they are not shaken by the negativity.
Beauty
“The beauty of it is that we produce juicy fruits, and we can provide low telecoms services to the nation. That has always been the fruit of our labours. The difficulties we have endured have been beneficial to the nation at large. We are alive to the slander, the innuendos and propaganda but our objective is to continue on the path of doing good,” he said.
Shakantu added that the only way they have been able to stay focused on delivering the services they give to the nation has been by doing business honestly and producing the products that are needed to build a better society and country.
He attributed their resolution to His Majesty’s Vision of becoming a 1st World Country.
“His Majesty King Mswati III’S Vision is of great energy and significance. It’s from that we draw our sub-missions and plans. First world means a fully developed society, one of opportunities and progress. We need activity and economic growth. With that Vision, it means opportunities in Eswatini continue to grow. We have been given a target by His Majesty and we are yet to have attained that. We have not even scratched the surface. We will contribute whatever we can to attain that,” Shakantu said.