Media company standoff
CONTROVERSIAL LOAN: PIC IN BID TO LIQUIDATE SURVÉ’S SEKUNJALO
Move described as a ‘series of attacks on Independent Media, and media freedom’.
The Public Investment Corporation (PIC) has lodged an application to liquidate Sekunjalo Independent Media (SIM), the company that purchased Independent Media in 2013, primarily through a controversial PIC loan paid to Sekunjalo.
The PIC’s application has put SIM and its executive chairperson Iqbal Survé as respondents.
In a statement yesterday afternoon, SIM spokesperson Takudzwa Hove accused the PIC of being “incompetent” and “malicious”, saying their supporting affidavit for the application was riddled with errors.
His statement read, “... among the many errors in the supporting affidavit, the PIC and its advisors cited the incorrect parties to the relevant legal agreements. This action is not only incompetent and mala fide but malicious, on the part of the PIC and its advisors.
“SIM is of the firm belief this action is designed as a further attempt to embarrass and undermine the Sekunjalo Group and Dr Survé personally and is aimed at provoking a run on SIM’s major subsidiary, Independent Media, which is fully operational.”
Hove alleged that SIM did not owe the PIC any money.
“Additionally, the PIC and its advisors have elected not to disclose in their court papers, SIM’s letter of September 30, 2019, addressed to its attorneys by SIM, wherein it is explained that SIM is not indebted to the PIC for any sum. SIM has to date, not received any response from the PIC in this regard,” he wrote.
Last month, after PIC acting head of legal services Lindiwe Dlamini told parliament that the PIC was considering applying to liquidate Sekunjalo, Survé called her testimony false.
He said at the time that, “Dlamini is well aware of the fact that the special purpose vehicle, Sekunjalo Independent Media, that was created for the purpose of securing Independent Media, is an entirely different juristic entity [to Sekunjalo]”.
SIM said yesterday it had told its attorneys to oppose the PIC’s “frivolous” application and seek relief, including a special costs order against the PIC and those currently in charge of it.
Independent Media publishes numerous titles in South Africa, including The Mercury, The Star, Pretoria News, Cape Times and Isolezwe.
Hove said yesterday that the application was part of a “series of coordinated attacks on Independent Media, and ultimately, an attack on media freedom”.
“This application is a waste of taxpayers’ money and constitutes irregular spending on the part of the PIC, which should be investigated by the appropriate authorities.”
Last month, Survé’s offices in Cape Town were raided by the Financial Sector Conduct Authority (FSCA). The FSCA was reportedly probing a case involving Survé’s company Sekunjalo Holdings allegedly engaging in irregular share trading against another of his companies, Ayo Technology Solutions.
Following the raid, the company released a statement announcing it was launching a lawsuit against the FSCA, which it accused of misleading a court of law.
The statement said the decision of Judge Patrick Gamble to grant the application which led to the raid “was based on a gross misrepresentation of the facts and the vital omission of material information”.
SIM yesterday said it had instructed its attorneys to oppose the PIC’s application and that they would seek a special costs order against the PIC.