Six senior SA executives have been exposed as having launched a direct assault on the principles of broad-based BEE.
The saga, laid bare in a court judgment last week, involved the R1.4bn sale of Dimension Data’s (Didata’s) Bryanston campus and left observers stunned by its sheer audacity.
It’s one thing to bend the rules, but blatantly bypassing BBBEE legislation takes some nerve — and exposes a dearth of corporate integrity.
Judge Denise Fisher’s judgment voiding the transaction was a breath of fresh air in this smog of deceit. The verdict amounted to a severe scolding of the accused, including Didata cofounder Jeremy Ord, whose legacy in the tech industry now appears blemished.
And let us not forget the rest of them: Jason Goodall, Grant Bodley, Steven Nathan, Saki Missaikos, Bruce Watson and Martin Epstein. The scheme was as elaborate as it was apparently dishonest, weaving a tapestry of nominee arrangements and en commandite partnerships to hide their true interests.
Kganki Matabane, CEO of the Black Business Council, did not mince his words: “The law must take its course, and those white executives must face the full might of the law.”
Indeed, it is high time white-collar crooks realised that their sleight of hand won’t escape the watchful eyes of justice.
The scheme, in all its brazenness, involved setting up a private equity fund that was presented as a black women-owned BEE initiative when the true investors were the executives themselves.
Their ingenious plan included manipulating the property valuation to secure a bargain and using vendor financing to further reduce their financial burden. When it came time to reveal the identities of the investors, they conveniently used fronts such as Epstein and his firm, Kula Investments Solutions, to maintain their cloak of anonymity.
Judge Fisher didn’t just call out their actions, she made a strong statement about enforcing ethical standards in business: “If this kind of flouting of foundational and universal commercial values remains unchecked and unpunished, this would represent a travesty of SA’s commitment nationally and internationally to the upholding of the values of honesty and integrity which are so intrinsic to proper commercial relationships.”
We couldn’t agree more. The parallels with other corporate fiascos, such as the collapse of Steinhoff and the dodgy bookkeeping practices at Tongaat, are clear, and the message needs to be heard in boardrooms across the land: corporate corruption must be met with the full force of the law.
The Didata executives shouldn’t be allowed to just walk away with a slap on the wrist. Pending the result of an appeal, they ought to face criminal charges. If we allow this to slide we would be sending a message that corporate malfeasance is a minor hiccup rather than a serious crime.
The law must not only invalidate fraudulent transactions but also hold the perpetrators accountable with the full weight of legal consequences.
The scandal reverberates far beyond the former Didata executives’ reputations. It’s about reaffirming our commitment to honesty and integrity in business. It’s about ensuring that those who think they can manipulate the system for personal gain are met with the harshest penalties. And it’s about sending a clear message: corporate corruption will not be tolerated.
It’s time to stop the rot and restore our corporate governance. Let’s start by holding to account those who appear to think they are immune.
It’s not “just a BEE law”. It’s the law.
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