Johannesburg, 30 Jun 2010
Goal Technology Solutions (GTS) has been placed into liquidation, bringing the number of known ICT companies that have folded so far this year to six.
GTS, although small with about 60 staff in Gauteng where the bulk of its operations were, is believed to owe a “substantial” amount to creditors and was placed in voluntary provisional liquidation by management in the past few days. Despite the size of outstanding payments, the liquidation is not expected to affect Safika Holdings, which owns a majority stake in the company.
So far, Faritec has folded its largest operating entity, Square One Solutions applied for liquidation of the JSE-listed entity, Eclipse Networks collapsed and Dialogue SA closed its doors. In addition, a former Square One company - Square One Pty - was liquidated.
According to the Companies and Intellectual Property Registration Office, just over 50 companies in the ICT sector filed for liquidation last year; double the amount that folded in 2008.
GTS spokesman David Barritt says he cannot clarify the amount of money that is owed to creditors at the moment. However, he says the numbers are “substantial”.
Yesterday, an announcement was sent out to GTS creditors informing them that an application for the company's liquidation had been filed with the court. The form requests creditors to nominate Norman Klein, from Westrust, as a liquidator.
Klein tells ITWeb that the company has been placed in provisional liquidation but liquidators have not yet been appointed. Barritt says that creditors have met to determine if the company can be saved, and it is now waiting for a liquidator to be appointed.
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Two years ago, Safika Holdings bought a majority stake in GTS.
Safika is a local empowered investment company with stakes in the industrial, gaming, financial services, human resources, telecommunications, media and technology sectors.
The empowerment company was formed in 1995 by businessmen Vuli Cuba and Moss Ngoasheng, who left the company temporarily during his stint as a presidential economic advisor between 1995 and 2000. Cuba is well-linked in SA business circles, as is former political activist turned business man, Saki Macozoma, who also holds a position on the company's board.
GTS started out as a division of Grintek, but was bought out in 2004 to become an independent company and entered the broadband space. The company's offerings included Internet, telephony, video-on-demand and digital security services.
It was also keen to play in the pay television space, announcing two years ago that it would be launching is offering in December 2008. The pay TV service never materialised. Two years ago, Safika bought a majority stake in GTS.
Broadband space
GTS aimed to become an alternative broadband supplier by making use of power lines to deliver connectivity straight to homes. On its Web site, it says it specialises in quad-play IP services to customers on the African continent.
The company says it provides these services over its end-to-end broadband networks using a hybrid of technologies such as fibre to the kerb or fibre to the premises, wireless and power line communications.
GTS has an individual electronic communications network service licence as well as an individual electronic communications services licence from the Independent Communications Authority of SA. It is not known what will happen with these licences, which allow the company to build its own networks.
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