Sekunjalo Investment Holdings (Sekunjalo) notes recent public commentary regarding its
relationship with the Southern African Clothing and Textile Workers’ Union (SACTWU) and wishes to
place the factual record on the table to correct a misleading narrative.
At the outset, Sekunjalo emphasises that the acquisition of Independent Media was a significant
broad-based empowerment transaction. The Sekunjalo consortium raised approximately R1.1
billion, complemented by approximately R850 million from the Public Investment Corporation (PIC),
to secure the acquisition from its previous Irish owners.
SACTWU’s Participation
Prior to the conclusion of the transaction, Sekunjalo was approached by SACTWU, which proposed
contributing R250 million, linked to its vision of establishing a union-focused newspaper.
This approach was supported and actively lobbied by senior leaders within government and
organised labour, including Minister Ebrahim Patel, Minister Blade Nzimande, and COSATU.
Following Sekunjalo’s appointment as the preferred bidder to acquire Independent Media, SACTWU
again sought participation in the consortium through an 8% stake.
However, due to concerns arising from the Trilinear transaction—where allegations of fraud
implicated certain individuals linked to the union—the law firm ENS restructured SACTWU’s
participation as a loan rather than equity.
This restructuring remains the subject of a complaint lodged by Sekunjalo with the Legal Practice
Council (LPC).
World of Work Newspaper Initiative
Central to SACTWU’s proposal was a commitment to invest R250 million into the “World of Work”
(WoW), a union- and labour-focused newspaper project. Acting in good faith, and in anticipation of
SACTWU fulfilling its obligations, Sekunjalo proceeded to fund the establishment and operation of
the publication.
Sekunjalo financed the appointment of an editorial team that included respected journalists such as
Karima Brown, Vukani Mde, and Amy Musgrave.
In addition, Sekunjalo carried the full costs of printing, publishing, distribution, and marketing. The
publication also provided extensive coverage of SACTWU, COSATU, and related stakeholders.
It is further noted that SACTWU seconded union officials to the WoW project, who received salaries
and contributed to shaping its editorial direction.
Failure to Honour Commitments
Despite these arrangements, SACTWU failed to honour its commitment to fund the WoW initiative.
As a result, Sekunjalo was compelled to step in and provide the full R250 million required to sustain
the project.
Sekunjalo has since issued summons against SACTWU in relation to these commitments and the
associated financial obligations. The claim includes the original R250 million, together with interest
and damages, bringing the total quantum demanded to R628 million.
Clarification on the “Loan” Narrative
The so-called “SACTWU loan” to Sekunjalo Independent Media is a false narrative. It is important to
clarify that these funds were not paid to Sekunjalo, but were instead paid directly to the PIC via ENS.
Furthermore, Sekunjalo provided significant value to SACTWU and its affiliates through the WoW
platform, including editorial support, operational funding, and sustained media coverage—at no
additional cost to the union.
Sekunjalo remains committed to transparency and accountability. The company has taken
appropriate legal steps to recover funds owed and has reported the conduct of ENS to the Legal
Practice Council for investigation.
Sekunjalo reiterates that the full context of its engagements with SACTWU demonstrates that the
union derived substantial benefit from the relationship while failing to meet its own financial
commitments. The company will continue to pursue all appropriate legal remedies to ensure that its
stakeholders’ interests are protected.
//ends//
Released on behalf of Sekunjalo. For media queries, contact [email protected]
About Sekunjalo
Sekunjalo is a SA investment holding company founded on the principles of ethical leadership, broad-based
empowerment, and long-term value creation. With a diversified portfolio spanning media, technology,
healthcare, and aquaculture, Sekunjalo is committed to driving inclusive economic growth in South Africa and
beyond.
