Former Dimension Data executives, recently found liable for orchestrating an illegal scheme during the sale of The Campus business park, have announced plans to appeal the Johannesburg High Court’s ruling. The decision stems from a lawsuit filed by NTT, Dimension Data’s parent company, which accused the executives of undisclosed financial interests in the transaction.
Background of the Legal Battle
The legal dispute began in 2022 when NTT initiated proceedings against Dimension Data’s co-founder Jeremy Ord and former executives Jason Goodall, Grant Bodley, Steven Nathan, Saki Missaikos, and Bruce Watson. Evidence from a whistleblower led NTT to commission Herbert Smith Freehills to investigate the sale.
The investigation concluded that the executives concealed their personal interests and manipulated the transaction’s terms to their advantage. In November 2024, the High Court ruled in favour of NTT, confirming the executives’ misconduct.
Former Executives’ Response
In a joint statement, the executives expressed shock at the ruling, stating it was unjustified. They pledged to pursue an appeal, arguing that the judgement contained inaccuracies. “We are resolute in ensuring that we are exonerated from any wrongdoing,” they said. They plan to file an application for leave to appeal, citing the judge’s findings as unfair and unsupported by evidence.
The executives also sought to clarify misconceptions regarding the Black Economic Empowerment (BEE) aspect of the transaction, emphasising that the sale aligned with NTT’s objectives to enhance BEE compliance.
BEE Objectives and the Campus Sale
According to the executives, the sale of The Campus to a BEE entity was a strategic decision by NTT to improve its BEE score. They asserted that the property was sold at fair value to a group led by Sonja de Bruyn, a Dimension Data non-executive director. De Bruyn’s company, predominantly black-female-owned, became the ideal buyer to meet BEE requirements.
They highlighted that the transaction provided long-term benefits for BEE and reduced operational costs for NTT’s South African operations. They maintained that the structure was a standard private equity arrangement, vetted by top legal firms, and mirrored similar successful BEE transactions.
Denial of Dishonest Conduct
The executives rejected claims of dishonesty, particularly a key email cited as evidence, asserting it pertained to a different project unrelated to The Campus sale. They condemned the portrayal of the transaction as a conspiracy, calling it “plain wrong and deeply distressing.”
Commitment to Transformation
The executives defended their track record, stating they had facilitated multiple transactions advancing empowerment and gender equality. “We remain fully committed to transformation and sharing wealth with the less fortunate to redress past injustices,” they affirmed.
Conclusion
As the legal battle continues, the appeal will be closely watched for its implications on corporate governance, BEE practices, and accountability within South Africa’s business landscape.
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