A final winding-up order has been issued against the e-Skills Academy, which stopped operating in December, less than a year after its establishment.
About two weeks ago, the academy's attorneys notified shareholders that attempts to find an investor had failed. Shareholders were also notified that the academy had received a demand for payment from one of its creditors, but that it was not in a position to meet this demand.
The final winding-up order was received by the academy's management last week, issued on behalf of Oracle, one of the original drivers of the initiative.
Oracle is claiming an amount of R3.5 million from the academy, which sources say include sundry expenses, such as training material.
At start-up, in January last year, the academy was 40% funded by Oracle, which put R10 million towards the initiative, while another 45% (R13 million) was supposed to be funded by an empowerment partner. This money was needed to fund the first year of operations.
A source close to the process says Oracle would not claim back its initial investment.
The e-Skills Academy was an initiative conceived at the Presidential International Advisory Council on the Information Society and Development, in August 2007.
One of the conditions for the establishment of the academy was a majority BEE ownership. However, the initiative ran into trouble last year when its BEE partner, the Makeda Consortium, pulled out after a 12-month involvement. The sticking point was a R13 million loan from the Industrial Development Corporation, which was granted to the consortium, on condition that its shareholders sign personal surety.
It appears the consortium stakeholders were not prepared to do this, and the deal fell through. Subsequent attempts to secure other investment partners proved unsuccessful. The decision to stop operating was prompted by the inability to secure an appropriate level of investment from a suitably qualified black economic empowerment partner.
Oracle disappoints
A source close to the academy says: “It's a bit sad to see that Oracle is the one creditor that is demanding the substantial amount [of money owed to it]. Oracle supplied the academy with the start-up capital and they were the first creditor to hand it over to the legal people when the academy couldn't pay their invoices.”
The source also expressed disappointment with the way Oracle supported the academy. “We were their official training partner, but they sent five intern students to Jordan for training. We could have done the training at a much better price, and with no travel and accommodation expenses.”
Former Oracle executive and e-Skills Academy CEO Dan Ellappa would not comment on the liquidation this morning, referring queries to Oracle. However, Oracle would not comment either, saying the matter is being handled by its lawyers.
The e-Skills Academy's directors - two of whom are Oracle executives - earlier stated they would not oppose a wind-up order.
Meanwhile, 13 of the academy's former employees have filed a case with the Council for Conciliation, Mediation and Arbitration against the training body, claiming they have as yet not been informed of reasons for their dismissal.
“We still haven't received any money from December, or any notice to say that our services have been discontinued,” says a former employee who asked not to be named.
During its time of operation, the academy claims to have trained and placed 250 unemployed youths.
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