Sekunjalo welcomes the rectification by the Supreme Court of Appeal (SCA) of its earlier error in the judgment in the matter between the Southern African Clothing and Textile
Workers’ Union (SACTWU) and the Independent Media Consortium (IMC).
In a rectification letter issued to the parties, the SCA corrected its earlier error in the judgment and confirmed the application of the long-established in duplum rule. As a result, the amount claimed by SACTWU has been reduced from approximately R458 million, plus ongoing interest from 2023, to R300 million, effective March 2026.
The rectification is significant from a legal perspective as it reaffirms a fundamental principle of South African law: that interest on a debt cannot exceed the capital amount owing. The in
duplum rule has guided South African courts for decades and provides important protections against excessive interest claims.
BACKGROUND
The matter stems from a R150 million loan advanced by SACTWU in 2013 to a Special Purpose Vehicle (SPV), initially known as Sekunjalo Independent Media (SIM) and
subsequently renamed the Independent Media Consortium (IMC). The vehicle was established to hold shares in Independent Media on behalf of a broad-based consortium
comprising approximately 12 empowerment groupings and Sekunjalo.
In 2023, SACTWU instituted proceedings against IMC in the Western Cape High Court. The court ruled in favour of IMC, finding that the loan had been subordinated and that
SACTWU’s then General Secretary, Andre Kriel, possessed the necessary authority to conclude the subordination agreement.
SACTWU subsequently appealed the judgment to the SCA. While the appeal court overturned the High Court’s findings on authority and subordination, its original judgment did
not apply the in duplum rule, resulting in a calculation of approximately R458 million. The SCA has now rectified that position and confirmed that the amount is capped at R300
million.
IMC IS NOT SEKUNJALO OR INDEPENDENT MEDIA
Sekunjalo CEO Lucien Jacobs said the matter continues to be misrepresented in sections of the media.
“IMC is not Sekunjalo and it is not Independent Media. It was a special purpose vehicle created to facilitate the acquisition of shares in Independent Media from its previous Irish owners. The court record clearly demonstrates this distinction,” said Jacobs.
He noted that the R150 million advanced by SACTWU was paid to the Public Investment Corporation (PIC) as part of the acquisition transaction and was not paid to Sekunjalo.
“It is regrettable that certain narratives continue to suggest that these funds were received by Sekunjalo. The funds were directed to the PIC in accordance with the transaction structure and instructions at the time.”
Jacobs further stated that, in his view, SACTWU has pursued costly litigation against a vehicle that effectively has no assets and no realistic prospects of satisfying the claim.
SEKUNJALO’S CLAIM AGAINST SACTWU
Jacobs confirmed that Sekunjalo has instituted action in the Western Cape High Court against SACTWU for approximately R250 million plus accumulated interest, bringing the total claim to approximately R620 million.
According to Sekunjalo, the claim arises from commitments made by SACTWU to participate in and fund a proposed workers' newspaper initiative. Sekunjalo alleges that it ultimately
funded the initiative after SACTWU failed to fulfil its commitments and has not recovered those funds.
“The issues between Sekunjalo and SACTWU remain before the courts and will be determined through the appropriate legal processes. We remain confident that all relevant facts will be ventilated before the court,” said Jacobs.
INDEPENDENT MEDIA REMAINS SEPARATE FROM THE DISPUTE
Jacobs emphasised that Independent Media and its operating subsidiaries are not parties to the SACTWU-IMC dispute.
“Independent Media has no liability in this matter and should not be conflated with IMC. Independent Media and IOL are also distinct entities that have maintained a separate commercial working relationship since 2014.”
He further noted that Sekunjalo has continued to support Independent Media financially over the past several years, contributing significant capital to sustain operations, protect jobs and support media diversity in South Africa.
“Independent Media remains an important voice in the South African media landscape, providing diverse perspectives and reporting that reflects the country's complex social and economic realities.”
Sekunjalo welcomes the SCA's correction and believes it reinforces the consistent application of South African legal principles. The company remains committed to protecting its legal rights, ensuring accuracy in public reporting on the matter, and pursuing the outstanding issues through the courts.
//ends//
Issued by Sekunjalo Group
For media enquiries:
Tina Van Der Merwe | Director of Communications
tina.vandermerwe@corporateservice.co.za
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.
