DiData, Choice try to patch things up

By Paul Vecchiatto for Dimension Data South Africa

Cape Town, 26 Apr 2004

Dimension Data (DiData) and Choice Technologies today issued a joint statement saying they were continuing to work closely together, but not outright denying that ties may be cut.

The statement was in response to weekend media reports saying that DiData was in the process of dumping Choice Technologies, in which it holds a 49% stake, and has effectively cut off its R20 million overdraft at Nedbank.

Also, according to the Business Times article, DiData has demanded the repayment of loans it has made to Choice and suspended its own credit line.

The DiData/Choice statement, which has been quoted in several morning editions of the country`s newspapers, says Dimension Data continues to work closely and support its partner Choice Technologies.

"Dimension Data and Choice Technologies are committed to delivering best of breed technology to all their customers," the statement reads.

It quotes Andile Ngcaba, chairman designate Dimension Data South Africa, as commenting: "Dimension Data has open dialogue with our partner Choice Technologies and together we will ensure our mutual interests are continually satisfied."

The statement ends with Semela Tseka, CEO Choice Technologies, saying: "We value our partnership and working relationship with Dimension Data and continue talks."

Business Times wrote yesterday that it was understood that DiData was unhappy that Choice had refused to participate in its broader black empowerment deals.

This includes the appointment of former Department of Communications director general Andile Ngcaba as DiData SA`s chairman designate to replace incumbent Peter Hird. This announcement was made on 30 March.

DiData has run into criticism for not having had a comprehensive black economic empowerment strategy and implementing one has become more urgent with the pending industry adoption of an BEE ICT Charter.

However, when Ngcaba was appointed as chairman designate, little detail of the rest of the deal was made apart from saying that DiData plans to have black executives in 40% of its senior management posts by 2006.