Software Futures up for grabs

By Nicola Mawson for Software Futures
Johannesburg, 22 Feb 2007

Fidentia subsidiary Software Futures is up for grabs after a High Court order placed aspects of its parent company under curatorship at the beginning of this month.

Fidentia`s financial service businesses were placed under curatorship after a Financial Services Board investigation revealed investors` money could not be properly accounted for.

Forensic accountant, George Papadakis, who the court appointed as joint curator, says applications are being invited for firms to express their interest in buying the software company.

Keen bidders

Should Software Futures be sold, this would be the fourth time in 10 years it has changed hands since inception.

Under the terms of the court order, the curators cannot dispose of any of the assets within the Fidentia group. However, the parties will reconvene in court on 27 March, which should provide clarity on its future.

Joint curator Dines Gihwala says a number of firms in the industry are keen to buy Software Futures, which began as a niche software provider and is now believed to be the largest software development firm in SA. It provides core business applications for organisations like Vodacom.

Papadakis says, following permission from the court, companies will be invited to perform due diligence on the embattled firm and will then be able to submit bids.

Staff turmoil?

While the firm`s future hangs in the balance, several staff members are believed to be looking for alternative employment, as there is concern within the industry that salaries may not be guaranteed for longer than three months.

Gihwala rubbishes claims that staff were only guaranteed salaries for three months and says the business is running profitably. Papadakis says as long as the company is under curatorship, staff salaries will be paid. "Our responsibility is to continue to pay salaries as long as [Software Futures is] trading." He adds there had been no resignations from the company as of yesterday.

However, recruitment company Paracon Holdings says Software Futures staff have approached it. CEO Mark Jurgens says the amount of people approaching the firm is "more than usual".

Gihwala says recent retrenchments within the Fidentia group had not affected Software Futures, which employs about 150 staff.

However, ITWeb is in possession of an internal e-mail that states the company is confident it will be able to pay salaries for the next three months.

"Currently, Software Futures is not affected by retrenchments, but I cannot stress enough how important it is that we all keep working and doing our best to keep our clients happy. I know that in these difficult times it is hard to stay positive, but I have faith that we will once again get through this," says the e-mail.