Iqbal Survé’s Sekunjalo Investment Holdings to Sue South African Presidency and State Organs for R75 Billion in Unprecedented Legal Action
In a groundbreaking move, Sekunjalo Investment Holdings (Sekunjalo/SHI) has announced its intent to initiate legal proceedings against President Cyril Ramaphosa, the Presidency, and various state organs. The company alleges a calculated loss of approximately R75 billion ($4 billion) due to actions taken against it by South African organs of state, including the Presidency.
Targeted Sabotage and Alleged Government Corruption
The decision to pursue legal action comes after a protracted period of what Sekunjalo describes as targeted sabotage, wherein elements of South African state power, especially since President Cyril Ramaphosa took office, were allegedly corrupted to deliberately undermine and harm Executive chairman, Iqbal Survé, and affiliated companies. The group asserts that these actions were aimed at preventing them from participating in the South African economy.
Genesis of Attacks: Independent Media Acquisition
SHI contends that the genesis of these attacks can be traced back to its acquisition of Independent Media in 2013, an independent source of news and information known for its exposure to government corruption and holding the state accountable.
The legal action, amounting to R75 billion, marks an unprecedented move against any government in South Africa’s history, underlining the gravity of the repercussions on Sekunjalo and its holdings. The notice served under sections 3(1) and (2) of the Institution of Legal Proceedings Against Certain Organs of State Act No 40 of 2002 gives the affected parties six months to mount a defence or reach a settlement.
Notices have been delivered to President Cyril Ramaphosa, the National Treasury, the Minister of Finance, the Minister of Justice, and the State Attorney. Sekunjalo alleges that the actions taken against it have resulted in significant financial losses, job cuts, and considerable distress for its employees and their families.
Dr. Survé, stated, “Our action is not just a fight for compensation; it’s a fight for fairness, accountability, and the protection of the rights of our companies, employees, and stakeholders.”
The legal action stems from what Sekunjalo perceives as years of unjust actions by certain elements of the government, including the weaponization of the Mpati Commission. Originally tasked with investigating alleged irregularities at the Public Investment Corporation (PIC), the commission expanded its focus to companies associated with Sekunjalo, exceeding its set terms of reference and timeframe.
Sekunjalo points to a skewed narrative presented by the Mpati Commission, leading to a formal review of its outcomes. The company highlights the adverse impact of these actions on its operations, emphasizing that the toll goes beyond financial figures, deeply affecting the livelihoods and well-being of its dedicated employees and their families.
The legal action also questions the fairness and impartiality of the investigation, challenging the actions of the Financial Sector Conduct Authority (FSCA), which conducted a highly publicized raid on Sekunjalo’s offices, seen by the company as an attempt to harm its public image rather than a genuine investigation.
Furthermore, Sekunjalo raises concerns about the systematic closure of company and individual bank accounts, an unprecedented move globally and one that occurred without any charges being laid against Sekunjalo, its executives, or associated personnel.
The lack of transparency in these actions raises questions about due process, accountability, and adherence to the rule of law. Sekunjalo’s legal action is positioned as a response to what it perceives as deliberate and reckless acts by certain individuals and organs of the state, jeopardizing the company’s operations and the livelihoods of its employees.
Through this legal undertaking, Sekunjalo aims not only to seek compensation for financial losses but also to clear its name and advocate for fairness, accountability, and the protection of the rights of businesses, employees, and stakeholders in the country. The case brings attention to concerns about potential abuses of power, lack of transparency, and the need for accountability within the government.
Sekunjalo’s unprecedented legal action is poised to set a significant precedent, addressing the broader issue of corporate entities facing unjust persecution and emphasizing the importance of safeguarding businesses against government actions that may lead to economic sabotage without recourse.
