Executive Chairman of the Sekunjalo Group, Dr Iqbal Survé, has strongly condemned recent articles published by News24 and Daily Maverick, describing them as defamatory.
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Executive Chairman of the Sekunjalo Group Dr Iqbal Survé, has strongly condemned recent articles published by News24 and Daily Maverick, describing them as defamatory and part of a "malicious propaganda campaign aimed at damaging his reputation and business interests".
The articles concerned a recent Supreme Court of Appeal (SCA) matter relating to Sekunjalo’s historical relationship with the Southern African Clothing and Textile Workers’ Union (SACTWU).
Survé and the Sekunjalo Group have indicated their intention to issue summons for defamation and damages against the media houses and the journalists involved, citing what they describe as a pattern of false and misleading reporting, the company said in a statement released, yesterday.
The statement further set the record straight on the Independent Media Acquisition and set out the factual chronology relating to the 2013 acquisition of Independent Media (then IMSA) from its Irish owners.
1. The Sekunjalo Consortium invested R1.3 billion to return the major publishing house to South African ownership, with the Public Investment Corporation (PIC) supporting the transaction through an investment of R850 million.
2. SACTWU was invited to participate in the consortium at the Union’s request, primarily for strategic and political considerations, and not as a core investor. Its participation was intended to provide the Union with a platform for visibility and engagement.
3. The transaction was facilitated with the involvement of former ministers Ebrahim Patel and Blade Nzimande, and executed by Andre Kriel, General Secretary of SACTWU, together with Kevin Govender and Johnny Copelyn of HCI.
Survé vehemently denies false claims, according to the statement, that Sekunjalo improperly received funds from SACTWU.
The statement set out a detailed account of the financial mechanics of the deal:
SACTWU invested R150 million into a Special Purpose Vehicle (SPV), the Independent Media Consortium (IMC). These funds were paid directly by the Union to the law firm ENS, which then transferred the amount to the PIC, retaining a portion for legal and advisory fees.
At no stage were any of these funds paid to Sekunjalo.
These include:
Sekunjalo said it has been the primary financial lifeline for Independent Media since 2013, contributing a total of R1.3 billion (R700 million directly and R600 million indirectly) to sustain the business, preserve jobs, and benefit all shareholders, including SACTWU.
Furthermore, Sekunjalo has issued summons against SACTWU for R250 million plus interest totalling R648 million related to an investment Sekunjalo made in the union’s newspaper, World of Work (WOW).
"It must also be noted that SACTWU and its associated executives were previously awarded shares in JSE-listed group companies by Sekunjalo, valued at over R1 billion, from which they received millions in dividends. Sekunjalo has now demanded the return of these shares and dividends," read the statement.
Survé and Sekunjalo have indicated their intention to institute legal proceedings against Daily Maverick, News24, and journalists Neesa Moodley, Jan Cronje, and Anne Crotty.
“The reporting in question does not constitute journalism; it amounts to a targeted campaign of disinformation,” Survé stated.
Sekunjalo never received the funds in question. “We have gone to considerable lengths to support an industry that is vital to our democracy. We will not stand by while our integrity and ethical standing are undermined by what we regard as blatant falsehoods. This action is not only in defence of our own reputation, but in affirmation of the principle that facts must prevail over propaganda,” said Survé.