Former Dimension Data executives accused of allegedly fraudulent dealings in how they oversaw the sale of the company’s headquarters were granted leave to appeal a judgment that invalidated the transaction.
The executives filed the application at the end of 2024 after a scathing high court ruling rolled back the R1.4bn sale of the office complex, known as The Campus, in Bryanston, Johannesburg.
The executives, who include co-founder Jeremy Ord and former CEO Jason Goodall, argue the court wrongly dismissed their argument about hearsay evidence, particularly email exchanges, to draw “unjustified inferences” of dishonesty and impropriety. The application also contested conclusions about BEE compliance and fiduciary duties.
The former executives, together with the Areti Partnership and Identity Property Fund I, welcomed the granting of appeal and “are confident that the orders made by Judge Fisher will be set aside on appeal”.
Didata began trading as NTT Data under its parent company NTT from April 1 2024.
Judge Denise Fisher found the six executives had conspired to bypass broad-based BEE legislation, manipulate the property valuation and reduce financial outlay via vendor funding.
At the beginning of 2022, an anonymous letter alleged that an independent investigation into the transaction, which would boost the company’s BEE credentials, found evidence that some executives had been implicated in unethical and illegal activity to line their pockets through the sale of the property.
Didata’s parent, Japan’s Nippon Telegraph & Telephone (NTT), ordered the subsequent investigation that has led to the lengthy legal battle.
Other executives implicated are Grant Bodley, former Didata Middle East head; Steven Nathan, former head of corporate development; Saki Missaikos, former strategy head; long-time executive Bruce Watson; and Martin Epstein, a property developer who allegedly was used as front when it became necessary to disclose the identities for the beneficiaries.
“The allegation that the BEE structure was a subterfuge was one that none of the parties raised and is incorrect,” the executives said in a statement. “The BEE structure was fully compliant with all BEE rules and was sanctioned by Eversheds and Webber Wentzel acting for NTT and Webber Wentzel acting for the empowerment entity.”
“There is compelling evidence that NTT elected to abide by the transaction which had achieved the BEE result NTT sought and that it in fact relied on and benefited from the transaction.”
With Tiisetso Motsoeneng
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