Koni Media Holdings on Sunday denied government involvement in its bid to take over media and entertainment company Johncom.
”Koni Media strongly denies any involvement of the Presidency or any other government structures in its bid for a 100% stake in Johncom,” said group CEO Groovin Nchabeleng.
He was responding to reports that Koni Media, an investment company belonging to President Thabo Mbeki’s political advisor Titus Mafolo, Foreign Affairs Department spokesperson Ronnie Mamoepa and former chief of state protocol Billy Modise, used government contacts in its bid for the company.
”My partners in Koni Media Holdings are shareholders in their individual private capacities. They are people who have exercised their constitutional right to invest in strategic opportunities through a legitimate investment vehicle,” said Nchabeleng.
The Sunday Times reported that Koni Media and a businessman had launched a R7-billion bid for Johnnic Communications (Johncom).
According to the paper, Koni Media had been in talks with the Public Investment Corporation (PIC) to raise the money.
PIC chief executive Brian Molefe said no deal to fund the bid had been concluded.
Nchabeleng said he could confirm that Mafolo and Mamoepa had declared their interests in Koni Media to their employers.
”I can confirm without fear of contradiction that both Mafolo and Mamoepa have declared their interests in Koni to their employer, as required by law.”
Mamoepa said: ”As a constitutional democracy every citizen is allowed to engage in economic activities within the framework of the law. Those like me, who work in government, we’re obliged to declare our interests to government. Our interests have long been declared to government.
”And as to the suggestion that President Mbeki and or government are behind this deal is ludicrous and laughable. This is a purely private initiative funded commercially.”
President Mbeki’s spokesperson Mukoni Ratshitanga said that the president was not aware of Mafolo’s involvement in the bid for Johncom.
”He does not know and didn’t have to know,” said Ratshitanga.
Nchabeleng would not disclose the amount of money involved in the deal saying that ”its confidential, we don’t want to disclose the money involved, but we have made a firm offer”.
Democratic Alliance spokesperson Dene Smuts said the company’s move to acquire Johncom was a ”bold manoeuvre” to put the Sunday Times and Business Day in the hands of the president.
Smuts said the move would be detrimental to media freedom.
Last month the Mvelaphanda Group, headed by businessman and African National Congress politician Tokyo Sexwale, announced its plans to buy a stake of between 25% and 30% in Johncom.
Johncom’s print titles include the Sunday Times, Sowetan, and Elle as well as Exclusive Books, NuMetro cinemas and Gallo music. – Sapa