Sekunjalo Investments non-executive board member Zoliswa Kota-Fredericks has resigned from the empowerment conglomerate in order to take up her new post as the deputy minister of human settlements.
She will serve under former Mvelephanda Holdings executive chairman Tokyo Sexwale, who will head up the ministry.
The black-controlled group's executive director, Igbal Surv'e, says Kota-Fredericks was a founding member of the company, which was formed in 1996 to benefit previously disadvantaged people.
“It is sad that she has to go,” says Surv'e. “She was a valuable asset to the company, but we had to redeploy her to government and we are happy for her here at Sekunjalo.”
Kota-Fredericks was also the chairperson of the African National Congress's (ANC) Women's League in the Western Cape since 2003, a member of Parliament since 1994, and she chaired the housing committee in the legislature.
Surv'e adds that Kota-Fredericks' ministerial position has no ties to any of the businesses that Sekunjalo is involved in, yet she had to resign as a matter of good governance.
Sekunjalo holds a number of key investments in industries such as IT and communications, where it has shares in Saratoga and owns Health Systems IT, among other companies.
Retail therapy
Surv'e says the conglomerate's sale of one of its IT businesses will only be concluded a month from now. Sekunjalo is engaged in negotiations with a major black-empowerment consortium for an undisclosed amount, but regulatory requirements have held up the deal.
“The Johannesburg Securities Exchange requires us to fill out a fair and reasonable report because a minority, Black Management and Empowerment [a Sekunjalo partner], is involved in the negotiations,” explains Surv'e.
Sekunjalo is also talking to a BEE company from KwaZulu-Natal in terms of the sale of one of its IT companies. The black-controlled conglomerate issued a cautionary announcement, more than two weeks ago, saying it expects a rise in its share price upon the conclusion of the sale.
Late last year, the conglomerate acquired a 30% stake in British Telecom's South African business for more than R27 million. It also purchased a 26% stake in Nokia Siemens Networks in 2007.
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