No better example exists of the potential for conflict between ANC heavyweights over business than the sale of a 15% stake in Telkom two years ago. To date, the FM and other publications have been unable to find out where all the money from the deal landed up. It has dissipated into a murky web of transactions between ANC-linked organisations and individuals.
The background is this. Around June 2004, there were indications that Thintana, a US/Malaysian consortium, wished to dispose of its 15,1% stake in Telkom. It was a sought-after asset - Telkom had been a strong performer.
CASE 2: ELEPHANT CONSORTIUM. Mentioned: Andile Ngcaba, Smuts Ngonyama
Two consortia formed to pursue the stake. One, now known as Leopard, was led by ANC spokesman Smuts Ngonyama. The other, Lion, was led by former department of communications boss Andile Ngcaba.
Ngonyama's group, which at first included Cape Town businessman Barend Hendricks, US businessman Jim Myers (formerly of SBC, Thintana's majority partner) and former government adviser Rafique Bagus, got out of the blocks first, travelling twice to the US that year. Leopard, which was later expanded to include others, such as Wiphold, had also gone a long way towards putting together the finance, members of the consortium and a local banker who structured the deal tell the FM.
But Leopard was pipped at the post by Lion. It was essential that any prospective buyer produce a waiver from the department of communications indicating that government did not intend to take up its pre-emptive right to purchase the shares. Ngcaba, the department's former director-general, got the waiver first.
Panic broke out in the Leopard camp and Ngonyama enlisted the help of ANC treasurer-general Mendi Msimang to persuade Thintana to accept a joint offer by Leopard and Lion. Msimang, in a statement made to the Sunday Times, has acknowledged his intervention.
The two consortia were also urged by both the department and the ANC "to co-operate" and join their bids, which they did, forming the Elephant consortium. After the Public Investment Corp, which funded the deal, took a slice, each consortium ended up with 3,3% of Telkom. Without Ngonyama, Leopard's bid would in all likelihood have been sunk.
But it is in the divvying up of Leopard's share internally that the mystery lies.
To implement the transaction, several shelf companies, named Clidets of various numbers, were established. The first Clidet held 3% of Leopard which was set aside for consortium member Blue Label, which had bankrolled the bid.
The second Clidet held 18%. This, the FM has been told by members of Leopard, was Ngonyama's stake.
The third Clidet owned 5% - but the original owner of this stake has remained a mystery even to most of the members of the Leopard consortium. Quite soon after the transaction was completed, members of Leopard say, this stake was sold to another member of the consortium, without the identity of the original shareholder being disclosed.
The members who spoke to the FM say they have been kept in the dark by the rest of their consortium. They are concerned about who got what in the end, particularly who got the unexplained third Clidet's 5%. The only clue has come from Ngonyama who, one claims, said it was for "key people who facilitated the deal".
Msimang refused an interview or to answer questions on his role in the Elephant consortium. Ngonyama cancelled an interview and failed to respond to questions.
Gloria Serobe, Wipcapital CEO and founder of Wiphold, which was the administrator of the Leopard consortium, says the information on shareholders is private. So does Brian Molefe, CEO of the PIC, which warehoused the Telkom shares and collected all the necessary information on the shareholders.
