Leroy van der Westhuizen is obviously a very angry man. He may have good reason to be unhappy with his recent career. But I would suggest that his account of PowerNet Communications above is neither complete nor accurate and his vitriole is misdirected.
Leroy was recruited in England and started working for PowerNet Communications before his new employer became aware of the magnitude of the debts left by the spectacular failure of his previous venture – NSAT.
(See UK Companies House document listing at
http://wck2.companieshouse.gov.uk/9efa95044617247a211ddd350dc296de/wcprodorder?ft=1 )
The directors and shareholders of InovaTech EMEA and PowerNet Communications invested millions of rand in South Africa over several years in an effort to bring high speed reliable internet access to customers in under-serviced areas. Leroy was a major recipient of a portion of that investment as he was employed by PowerNet Communications as the General Manager of a small team in South Africa for several years. During this time he was tasked with establishing a reference site for an implementation of DS2 powerline communications technology, and raising capital to fund an expansion of the business to become a telecommunications and internet service provider.
During negotiations to settle a dispute, a contractor that worked with Leroy on the reference site installation entered a default judgment against InovaTech EMEA without serving any documents on the company, a clear contravention of the rules of court procedure. The court case referred to by Leroy was an application to set aside that improperly obtained default judgement. The specific page linked above is the report of the judge's refusal of the contractor's application to strike out the company's appeal.
During Leroy's tenure, PowerNet Communications failed to raise the capital it needed to reach critical mass and was hampered by a myriad of local management and technical problems.
DS2 was also struggling financially and was bankrupted in early 2010 making it increasingly difficult for users of DS2 access network technologies - like PowerNet Communications and Goal Technologies (referred to by Leroy) - to support and expand their networks built on DS2 technology.
(See
http://hanfan2.blogspot.com.au/2010/07/upa-makes-press-release-about.html)
InovaTech, PowerNet Communications, and Goal are in good company. There have been many powerline technology trials in countries all over the world - many of which were small scale successes that failed to achieve large scale or become commercially sustainable telcos. Several large companies backed by millions of dollars from institutional investors have tried but failed to build successful public access telecoms businesses on powerline networks for reasons related to technology, regulation, and business models.
After the bankruptcy of DS2, the technology was purchased by Marvell who recognised that the ideal application for the technology is grid control on public electricity grids, and in-house networking. Powerline communications continues to be very successful in these markets and is used by several major European telcos for IPTV distribution within the customers' premises. Netgear and many other major network suppliers offer very effective in-house powerline devices based on DS2 technologies.
As the court records show, Leroy petitioned to wind up the South African company, PowerNet Communications (Pty) Limited, to collect a relatively small debt despite the directors' requests for patience. It was with great regret that the directors were forced by his action to appoint a liquidator when more patience on his behalf may have allowed the directors time to achieve a more favourable outcome for all creditors.
As the company register shows, and contrary to Leroy's implication, the Hong Kong company, PowerNet Holdings and its South African subsidiary PowerNet Telecoms, represent some parties who invested in InovaTech EMEA and some new investors represented by a new board. New capital has been invested in South Africa following a new technical strategy deploying fibre and wireless networks connecting customers who would otherwise have no access to high speed internet services. ICASA has been fully informed of the situation.
There are many casualties of the global financial downturn in South Africa and elsewhere. This period has been very challenging for businesses raising capital for new technology projects in developing markets.
The directors of InovaTech EMEA have always made themselves available to personally address the concerns of any interested party, and continue to do so. They can be contacted at
[email protected]
