British Telecoms South Africa (BTSA) has unceremoniously ended its commercial relationship with under-fire Sekunjalo Group.
In a terse statement yesterday, the multinational British telecommunications company announced the termination of BTSA’s partnership with Sekunjalo Group, without providing much detail.
BTSA dropped the bombshell that the relationship had soured, saying it was left with no option but to end the partnership.
A BT spokesperson said: “We have initiated the termination process with the Sekunjalo Group in line with the shareholder agreement in place. We can confirm the 30% stake in BT South Africa was held by AEEI holding company through its subsidiary, KiloMIX Investments, and the transfer of BT shares to AYO Technology Solutions never took place.
“BT has made a decision to terminate its relationship with the Sekunjalo Group in South Africa. Further, BT has also corrected the misrepresentation of facts to the Standing Committee on Finance made by representatives of the Sekunjalo Group and initiated the process of terminating its relationship with the Sekunjalo Group. BT will be exploring alternative options to meet its BEE obligations.”
When asked by ITWeb to provide details, the BT spokesman responded, saying: “There were factually inaccurate statements made by the Sekunjalo Group in front of the Standing Committee on Finance. BT was not aware, nor in agreement with the assumptions made in the pre-listing statement conditions that referred to BT South Africa. This has left BT with no other option but to correct the record and terminate the relationship with Sekunjalo.”
The development is yet another blow for Sekunjalo and its subsidiaries, as the group has been facing multiple challenges on several fronts, including how it received funding from the Public Investment Corporation (PIC).
The Sekunjalo Group is currently challenging the damning Mpati Commission of Inquiry report, which alleged impropriety on the part of the PIC when some of the companies under the group received funding.
Further, some companies in the group, including AYO Technology Solutions, have been dropped as customers by banks.
Sekunjalo Group has also since clashed with the Johannesburg Stock Exchange, Companies and Intellectual Properties Commission, the PIC and Financial Sector Conduct Authority, accusing them of victimising and unfairly censuring the tech investment firm.
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