Vodacom's refusal to allow one of the consortium bidders for its black economic empowerment (BEE) stake to break up and re-pitch individually is most likely driven by protecting its business interests, says an investment analyst.
However, political analyst Steven Friedman claims that, while the ANC has little interest in Vodacom's business needs, it just wants Bulelani Ngcuka out of the picture.
These comments follow an article in the Sunday Times alleging that Vodacom had issued an ultimatum to the Amandla Omoya consortium.
The consortium - comprising groups headed by Ngcuka, Nkenke Kekana, Reuel Khoza and Anna Mokgokong - is believed to be splitting following political pressure to have Ngcuka removed. However, Vodacom's board told the exiting partners to rejoin the consortium or risk losing out on the R7.5 billion stake, the paper revealed.
Business unusual
However, a financial analyst, who cannot be named, says Vodacom's decision not to allow the Amandla Omoya consortium to disband and re-pitch was probably based on protecting its business interests.
"If it did allow the three players to pitch again, it would by rights have to open up bidding again to all interested parties. Essentially it would send the company back to the beginning of the process of setting up a BEE partner. This deal has already been delayed longer than the company wanted, so I don't think they would have wanted to go down this route," he explains.
Additionally, restarting the process could have led to financial liabilities, he notes.
"The other short-listed bidders could sue the company as the process had been closed. If there are four or five short-listed bidders as is speculated, then that would be very costly for the company."
Politics usual
However, an ANC insider has told ITWeb that Ngcuka is not favoured by the new ANC regime due to his past activities as director of public prosecutions, which, among others, was instrumental in instituting legal action against newly-elected ANC president Jacob Zuma.
Friedman agrees and says there has been a general trend in SA for BEE deals to be slanted in favour of politically connected individuals.
"There has been an almost unholy alliance between government and business, and it signals that we are not doing what we are supposed to be doing with BEE deals, namely to 'de-racialise' the economy," says Friedman.
He says it would seem that in the Vodacom case, the ANC does not really care whether there are processes that need to be followed, as they want to see the "right" people landing the deal.
"If the purpose of BEE was to bring in black people that can add value to a company, it would not matter what the ANC thinks about a deal," says Friedman.
"I'm not aware of any law in this country that says you have to ask the ANC before you can do business."
Vodacom spokesman Dot Field says she cannot comment on the issue as all parties are bound by confidentiality clauses.
However, she notes that Vodacom is making sure the process underpinning the BEE deal is transparent, as evidenced by the media statement and advertisement the company released last week.
The advertisement noted the BEE stake would be split among employees, the public and a strategic partner. Vodacom would ensure its strategic partner is as broad-based as possible, it stated.
She says Vodacom will provide further information later today.
(Additional reporting by Damaria Senne.)
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