A business review by Dimension Data has found that certain executives did not disclose their personal financial interests in the sale of The Campus, the group’s business office park in Bryanston, the company has confirmed.
TechCentral reported that the problems with the deal were brought to light by a whistleblower.
It reported that the whistleblower provided enough evidence for Dimension Data’s holding company, NTT, to appoint Herbert Smith Freehills to investigate the matter.
This has not only jeopardised the deal but could also cost Dimension Data its B-BBEE rating, according to the report. A reduction in its B-BBEE rating would likely impact Dimension Data’s ability to get lucrative corporate and government contracts.
“In December 2019, The Campus was sold to Identity Property Co (Pty) Ltd (Identity PropCo), a majority-black women-owned company, led by Ms Sonja De Bruyn, as part of a significant B-BBEE transaction,” Dimension Data stated.
De Bruyn was a long-standing director of Dimension Data at the time but recused herself from matters relating to the transaction. Dimension Data said she had not been implicated in the review.
“On 21 May 2021, Ms De Bruyn and all other non-executive directors stepped down when Dimension Data aligned its governance structures to that of NTT Ltd,” the company said.
“The executives’ failure to disclose their personal financial interest in the transaction as required under the Companies Act could affect the validity of the transaction.”
Dimension Data said that it is working with Identity PropCo to find a solution that achieves the original objectives of the transaction while preserving the interests of both companies.