Reports are hovering around in the Political community of South Africa that Pravin Gordhan‘s nephew and business mogul Ketso Gordhan is said to be illegally involved in misusing the governments’ BBBEE policy structure at Steinhoff. As per the report Published on the News Website WMCLeaks, BBBEE has been brought into picture to boost black’s participation in country’s economy, the same has been used illegally by Ketso Gordhan for his financial purpose at Steinhoff, a firm which has reported Financial irregularities worth R200billion.
It’s worth mentioning here that Ketso Gordhan is the official owner the J& J Group which is a partner firm of Steinhoff in accordance to BBBEE and also one of the major culprits in the scandal. Moreover Ketso have said to be earlier involved in another scandal which brought him benefits worth R21 million during his spell as the CEO of cement manufacturer PPC .The amount includes a basic salary of R4.4m, leave allowance of approx R600 000, notice pay/restraint of trade of R5m, a separation pay of R5m, and R6.1m from share awards settled under a forfeitable share plan.
Moreover, Jayendra Naidoo, the CEO of J&J Group and Ketso Gordhan’s peer, is a board member at Steinhoff. Jayendra Naidoo did help Ketso Gordhan to illicitly abuse the BBBEE framework to further bring Monetary gains to them. Naidoo is also a partner in crime to Pravin Gordhan and a very close ally of the Gordhan Family since long now.
It’s a “Whites Only” Affair at Steinhoff
As per the report’s sources, Jayendra Naidoo drove a campaign ‘Lancaster 101’ that was mutually supported by J&J Group’s investment holding company Lancaster Group and Steinhoff to secure a BBBEE agreement. This came as a follow up after Steinhoff didn’t succeed in grabbing a BBBEE deal in the year 2008. It must be noted that to strike the BBBEE deal, The Steinhoff and J&J Group were required to constitute at least 60% blacks in the Steinhoff board as per legal requirements. However, the constitution of the board was totally different in real terms.
It’s worth mentioning that there were no Indians, colored and the native black majority in the company’s Board of Directors’ list. Moreover, At least four members were related to the founders and promoters of the company that more or less confirms the family business ran by the firm under the tag of a professional enterprise protecting investor interests. Moreover, many of the board members at Steinhoff are heavily linked with the WMC biggies which clearly indicate their closeness to Pravin Gordhan’s political and business associates Trevor Manuel, Maria Ramos and Johann Rupert.
It must also be noted that few days after Steinhoff’s R183bn slump in Johannesburg Stock Exchange last week, J&J Group’s equity stake in Steinhoff through BBEEE agreement has been calculated at R 2880 million. Apart from Steinhoff, Ketso Gordhan’s firm also got BBBEE compliant agreements with many WMC-owned firms such as the Johann Rupert‘s Grindrod Freight & Logistics, Macquarie Group, Christo Wiese owned Mango Airlines etc.