Dimension Data’s fraud case against a co-founder and former top executives

A year and a half after NTT Data (then Dimension Data) launched legal action against six former executives and three other individuals involved in the sale of The Campus business park, the case has remained unresolved.

This is according to a spokesperson for NTT Data, who told MyBroadband that there was no update on the matter.

The legal action came after a whistleblower provided enough evidence to spur NTT to appoint Herbert Smith Freehills to investigate the matter in 2022.

“An extensive investigation has been undertaken regarding the sale of Dimension Data’s Campus property in Johannesburg, South Africa,” NTT said in a statement.

NTT said the investigation revealed that former senior executives did not disclose their personal financial interest in the transaction and wrongfully induced its conclusion.

“This is in breach of the law and company policy. Evidence points to the former executives having defrauded Dimension Data,” the company said.

“In addition, the investigation revealed that the purchaser of the Campus paid a secret commission to one of these former executives.”

“Following the investigation, NTT Ltd. and Dimension Data have instituted legal and court proceedings against the actions of former executives and associated parties,” NTT said.

Japanese telecoms giant Nippon Telegraph and Telephone (NTT) acquired the entire Dimension Data in 2010. Before its buyout, Dimension Data was the largest JSE-listed technology company.

In 2019, Dimension Data was integrated under the group’s NTT Ltd. division.

In October last year, NTT abandoned the Dimension Data brand entirely. It said the name change forms part of the merger of NTT Ltd. and NTT Data into a single entity, which will be known as NTT Data.

When NTT confirmed the legal action against the six former Dimension Data executives last year, it also named them for the first time: Jeremy Ord, Jason Goodall, Grant Bodley, Steven Nathan, Saki Missaikos, and Bruce Watson.

Jeremy Ord co-founded Dimension Data in 1983 and served as executive chairman until 2021.

Bruce Watson joined the company in 1984, and Saki Missaikos was the executive head of strategy and former MD of Internet Solutions.

Jason Goodall was Dimension Data’s CEO before being promoted to Global Chief Executive Officer for NTT’s IT services subsidiary, NTT Ltd. He left in 2021.

Grant Bodley was the Dimension Data Middle East & Africa CEO until May 2021. He was reportedly acting as spokesperson for all six executives.

Steven Nathan was head of corporate development at Dimension Data.

The company alleged Goodall had a secret financial interest in the deal, which was meant to improve Dimension Data’s Black Economic Empowerment rating.

Goodall allegedly approved the sale at “significantly less” value to a majority black women-owned fund, in which he had either already invested or planned to invest.

“Goodall and the other executives’ conduct in arranging and acquiring their interests in the fund and concealing and failing to disclose those interests amounts to gross misconduct involving dishonesty,” NTT’s lawyers said in their UK court filing.

“NTT Ltd. and Dimension Data place ethical leadership and governance at the heart of their business and will not tolerate any such violations at any level of the organization,” the company said in its 2023 statement.

“NTT Ltd. and Dimension Data await the outcome of the legal processes. At this stage, NTT Ltd. and Dimension Data will not take further questions.”

Eighteen months later, NTT’s response to questions was that there was nothing new to report.

MyBroadband contacted Bodley for comment, who was reportedly acting as spokesperson for all six executives in 2023.

He did not respond. Last year, he said that the allegations lacked merit and that they looked forward to presenting their defence in court.