The Cape High Court has placed Maseco Bytes IT Solutions in provisional liquidation at the request of major shareholder and creditor Bytes Technology Group (BTG) - part of the Altron Group.
The provisional liquidation was granted last week and was brought before the High Court by NDS, a BTG subsidiary, and the latter was cited as an intermediary. A final order could be in place by 16 March.
A number of Maseco Bytes senior staff members have already resigned, including the financial manager, and the rest of the 60 employees should be looking for new employment soon.
The decision by the Cape High Court brings an acrimonious end to what was initially heralded as a promising black empowerment joint venture (JV). The JV was launched on 1 April 2002, when Maseco Bytes IT Solutions (MSI) and BTG agreed to merge their Western Cape businesses. MSI was part of a team headed by Accenture that was awarded the City of Cape Town R300 million enterprise resource planning tender.
In terms of the JV, BTG would supply management and IT skills, and it would have 33.3% of the new entity. Included in the agreement were loans, not to exceed R4 million. About R2.327 million was earmarked to help Maseco settle its business with black-owned insurance group Kopano Ke Matla. By the end of December, Maseco Bytes owed BTG a total of R6.909 million.
The board of the directors had two BTG members, including Bradley Fraser, Maseco Bytes MD Nomvula Nzengu, Mosomia Nduna and Johannes Clausens, a Danish citizen who heads up Maseco Systems Integration.
What unravelled the deal was a claim for just more than R1 million by BTG subsidiary NDS for work done as part of a contract Maseco Bytes had with petrol company Caltex to install closed circuit TV in its Western Cape service stations.
NDS financial director Deidre le Hanie says in her High Court statement: "Although the respondent`s (Maseco Bytes) current assets exceed its current liabilities, the respondent is probably cash strapped."
Le Hanie`s statement says Maseco Bytes` total assets amount to R10.034 million, compared to liabilities amounting to R13.038 million. This included the two long-term loans Maseco owed to BTG.
Maseco Bytes MD Nomvula Ndzengu initially opposed the NDS application because she felt the company still has prospects. However, Ndzengu says she withdrew her application because as MD she "could not go against the wishes of the shareholders".
Bradley Fraser, a director of BTG`s network division and one of BTG`s representatives on the Maseco Bytes board, says in his affidavit that the JV had failed and accused Ndzengu of exceeding her authority on several issues.
"The finances and management of the respondent (Maseco Bytes) have been hijacked. BTG in its capacity as shareholder and creditor has no other means whereby to protect against the control of Ms Ndzengu as MSI condones this conduct and is not prepared to take any remedial measures," Fraser`s statement says.
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