Beleaguered transport utility Transnet and SA's government are facing an R8 billion lawsuit over the sale of its 5% shareholding in MTN last year.
The action relates to Transnet's call, in 2003, for expressions of interest in the MTN shareholding held by the Transnet Second Defined Benefit Fund and Transnet M-Cell Trust.
In April 2004, then public enterprises minister Jeff Radebe named Umthinzi Telecoms Consortium - led by CEO Sandile Zungu - as preferred bidder for the shares.
However, Mario Ramos' 2005 entry into the state-owned enterprise as CEO saw the deal derailed as negotiations ground to a halt.
In February last year, Zungu threatened the parties that legal action was imminent. However, he kept a low profile in the months following this statement.
Papers filed
This morning, legal representative for the consortium, Werksmans Attorneys, confirmed papers had been filed in the Pretoria court.
"Transnet and the government of SA were served with the papers on Wednesday. We are asking for return of the shares, or alternatively a damages claim. They have 20 days to respond to the action. At this stage, we cannot say any more," said senior associate Jacqui Kallmeyer.
The 80.4 million shares, originally believed to be on the table for R2.4 billion, are today valued at around R7.8 billion.
Transnet spokesman John Dludlu says the negotiations between the parastatal and Umthinzi Telecoms broke down due to failure to agree on a purchase price of the shares.
True owners benefited
"Consequently, Transnet terminated the negotiations with Umthunzi and subsequently disposed of the shares through the open market for the benefit of their true owners - namely, the pensioners of the Transnet Second Defined Benefit Fund."
Dludlu says the disposal process - which had the approval of, among others, the board of Transnet and government - was carried out via a book-building exercise which has ultimately proven to be in the best interest of the pensioners.
"Transnet has taken note of the legal challenge. Our position on this matter has not changed and we welcome the opportunity to put the issue to rest through the courts. We also welcome the fact that the consortium has, at last, chosen to pursue its rights through appropriate, transparent and independent structures, instead of casting petty aspersions on our integrity through extrajudicial institutions," he stated.
Zungu could not be reached for comment.
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