Salim Essa has sold his controlling interest in Trillian as his close association with the Gupta family – facing allegations of corruption and state capture – threatens to jeopardise the financial-services company.
Essa, who is a director in VR Laser and a shareholder in Teg-eta Exploration and Resources through Elgasolve, sold his 60% stake in Trillian to Trillian Capital Partners CEO Eric Wood, the company said on Wednesday.
The acquisition brought Wood’s share to 85%, with the rest of the shares owned by management and staff, the firm said in a statement.
Essa has been at the centre of allegations that German software multinationals SAP and Software paid millions in kickbacks to companies either owned or in the process of being acquired by the Guptas’ Sahara Systems in order to acquire contracts from state-owned entities such as Transnet, according to reports from investigative journalism unit amaBhungane.
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“The unrelenting media allegations arising from Mr Essa’s holding — despite no proof or official charge — has had a negative impact on the ability of Trillian Capital Partners and its staff to reach their full potential,” Trillian said.
In her State of Capture report regarding R96m Trillian had received from Transnet for no apparent services rendered‚ former public protector Thuli Madonsela wrote: “Contracts between Transnet‚ McKinsey & Co‚ Regiments Capital and Trillian Capital Partners remain a mystery as all parties refuse to release details of the deals‚ which are being investigated by the National Treasury.”
The mystery has deepened since evidence has emerged that Trillian similarly received nearly R500m from Eskom despite having no contract.
“Trillian has always maintained its innocence in the face of allegations and reiterates the belief that it has a team of excellent staff who are able to deliver on their mandates to the highest standards and hope they will be given a fair opportunity to do so in the future,” the company said.
Trillian also said the Essa transaction was part of the firm’s strategy to reshape the business and “continue to deliver world-class financial advisory and consultancy services”.
Trillian said it did not respond to direct questions about Wood’s complicity in allegations of state capture, which advocate Geoff Budlender found was very likely. Trillian tried to obstruct the independent probe.
A whistle-blower, who had given Madonsela the same information, told Budlender that Wood had prior knowledge that President Jacob Zuma would remove former finance minister Nhlanhla Nene from his position and had even written a to-do list for Nene’s replacement.
Wood had informed the whistle-blower that Mohamed Bobat, who reported to him at Regiments Capital, would be special adviser to Nene’s replacement and would channel tenders from the Treasury and state-owned entities to Trillian.
Wood denied the whistle-blower’s version of events — which included an e-mail containing the to-do list — but declined to hand over his electronic devices to Budlender.
Budlender said while it was not possible to make a definitive finding without access to relevant material, it seemed “likely that the version given by the [whistle-blower] is the truth.
“If that is indeed the case, it raises the very troubling question as to how information about how the president was going to exercise his constitutional prerogative came to be in the hands of a private company — and particularly where the information was commercially … sensitive.”
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