#tshepo mahloele

[news2454646]

The truth prevails as Mpati Commission-ordered forensic probe vindicates Harith

Harith operates in the highly-regulated financial services sector, so we are no strangers to, and are quite comfortable with heightened scrutiny. Our line of business requires the utmost fidelity to those who entrust us with their funds and investments.

[mahloeletshepo]

As the patron, Tshepo Mahloele will be the leading voice in rallying millions of citizens to demand that the world’s top political and business leaders stop delaying action with longer-term timelines and focus on what we need to do here and now. 

[mahloeletshepo09]

Tshepo Mahloele called on African governments and business leaders to join this critical endeavour. The Harith team stressed the importance of taking collective action to build a sustainable future for Africans for generations to come.

[thetimesnow]

Tshepo Mahloele

By: Eva Henke

[hannahspeight]

Tshepo Mahloele

#TshepoMahloele

[capitecstake]

South African tycoon Tshepo Mahloele loses $79 million from Capitec stake

The recent decline in Capitec Bank’s shares has led to a substantial decrease of R1.51 billion ($78.99 million) in Mahloele’s stake in the retail bank, declining from R15.44 billion ($808.98 million) on Oct. 10 to R13.93 billion ($729.99 million) at the time of this report.

[thenewsingadda]

South African tycoon Tshepo Mahloele loses $79 million from Capitec stake

Mahloele, the chairman and founder of Lebashe Investment Holding Group, holds a 7.26-percent indirect stake, translating to 8,409,802 ordinary shares in Capitec Bank.

The leading retail bank has amassed a substantial customer base and garnered a reputation as one of the world’s foremost retail banking brands.

[dailymaverickg]

The Impact of Capitec’s Stock Decline on Tshepo Mahloele’s Wealth

The recent decline in Capitec Bank’s shares has led to a substantial decrease of R1.51 billion ($78.99 million) in Mahloele’s stake in the retail bank, declining from R15.44 billion ($808.98 million) on Oct. 10 to R13.93 billion ($729.99 million) at the time of this report.

[newskyc]

SAA: PIC allegations are Harith’s albatross

Harith General Partners, one half of the consortium that will take over SAA, has come under scrutiny since the announcement of the national carrier’s new majority shareholder.

There have been questions about the private equity firm’s ties to the Public Investment Corporation (PIC) and allegations against its former chief executive, Tshepo Mahloele. Red flags have been raised over Mahloele’s past business dealings — which allegedly financed the ANC — and Harith’s involvement at another state entity, PetroSA.

Recently doubt has been cast on Harith’s ability to raise the capital for the risky SAA venture.

Harith chief executive, Sipho Makhubela, says the firm is being asked to play by a different set of rules. “This is not the norm of how business is done,” he said in an interview with the Mail & Guardian this week.

“What we are being asked, and how we are being treated, is like asking to forget how everything else gets done. In your case, if you are buying SAA, prove to us that you have got R3.5-billion in the bank.”

The scrutiny, he surmises, may not be so acute if Harith was not a black-owned business. “Our credentials get asked at every given turn. We are not a business that came around yesterday,” Makhubela said.

“We have been around for over 15 years now. We’ve got a track record. We’ve got investments that are tangible.”

But, considering how Harith got its start, questions were inevitable.

Seeds of doubt

The firm’s beginnings are laid bare in the PIC commission report. And, as United Democratic Movement leader Bantu Holomisa pointed out in a statement after the SAA announcement, the report does not paint Harith in a favourable light.

According to the report, the PIC, mandated by then president Thabo Mbeki, initiated a process to establish the Pan African Infrastructure Development Fund. The fund started operations in 2007 with commitments totalling $625-million from nine investors. The Government Employees Pension Fund (GEPF), which is overseen by the PIC, committed $250-million.

Mahloele was the head of corporate finance at the state-owned asset manager and was appointed to lead the fund’s secretariat. In 2007, he was appointed as the chief executive of Harith, which was established to manage the fund. Then deputy minister of finance, and PIC chair, Jabu Moleketi was appointed chairman of Harith.

The PIC commission found that Harith charged “significantly high fees”. Mahloele has denied any wrongdoing. “Harith’s conduct was driven by financial reward to its employees and management, and not by returns to the GEPF,” the report reads.

“In essence, the PIC initiative, created in keeping with government vision and PIC funding was ‘privatised’ such that those PIC employees and office bearers originally appointed to establish the various funds and companies reaped rich rewards.”

The commission recommended that the PIC and the GEPF appoint an independent investigator to look into the matter. The investigation has not been concluded.

In his statement, Holomisa — who testified at the commission on the Harith allegations — asked if PIC funds had been leveraged to finance the SAA deal.

The PIC denied this, saying that although it still owns 30% of Harith, it is not in any way involved in the acquisition.

Makhubela said he is not surprised by the public scrutiny Harith has been subjected to, but he is disappointed. “It has become a personal thing. Our directors [Mahloele and Moleketi], who are independent, are being abused, quite frankly, as if they have a beneficial interest … They have no beneficial interest in Harith in one shape or the other.”

The PIC controversy has been an albatross for Harith. “We are just waiting for this chapter to be behind us. Truthfully it has been a drag on our business … There’s a lot of things that we should be and could have been doing that have been delayed because these things are pending.”

False start

The SAA acquisition, which was announced by Public Enterprises Minister Pravin Gordhan last week, is itself awaiting finalisation. The Takatso consortium, consisting of Harith and Global Airways, must still undertake a due diligence process before the deal is inked.

Makhubela said that, although he doesn’t want to speak for government, he believes the announcement was made prior to the due diligence exercise for transparency. “If government came out and announced a deal that was done and closed, there would be an equal uproar because this was kept in the dark and people only learned about it at the very end. “I think it was well meaning to take the public into confidence and to do it transparently.”

But government’s transparency about the SAA deal has also been questioned after it reportedly said it would not disclose the names of 30 shortlisted equity partners. In response to questions from News24, the department of public enterprises said non-disclosure agreements were signed for commercial sensitivity reasons.

This is par for the course, Makhubela said. He also reiterated that it is not the norm for the public to be privy to the ins and outs of a deal like the SAA acquisition.

“Everybody talks about details being scarce. Ja sure, part of it is because you don’t want to lay out your strategy as if there is no competition. There is competition out there.”.

He added that it is unfortunate that doubt has been raised over Harith’s ability to raise the capital needed for SAA. “What I can tell you is I see a lot of businesses, who do not get asked the kinds of things that we are getting asked. I see a lot of businesses who are not asked to see their bank accounts … Our job is to mobilise capital.

“We have done significant projects that cost billions over the years and we have been able to aggregate capital … I find it rather curious that when it comes to us, we are being asked before we start to show that we’re good for it.”

Makhubela said the funding for SAA will be multi-layered and Harith will tap into multiple sources of capital. “There is nothing wrong with that. And if other people are using that way to fund themselves, allow Harith the same courtesy to be an equal market participant. There is almost a sense that the rules for us must apply differently than they would elsewhere.”

Controlling destiny

Despite Harith’s qualms over being asked to put all its cards on the table, Makhubela is willing to talk about why he believes getting involved with SAA, even amid Covid-induced uncertainty, is good from a strategic standpoint.

Harith, he said, has been involved in the infrastructure side of the aviation sector. The firm is a significant investor in Lanseria airport, northwest of Johannesburg. Harith was also invested in the Enfidha and Monastir airports in Tunisia.

Because of these investments, Harith is awake to how periods of instability can jeopardise assets. Unrest in Tunisia, starting in 2010 as a result of the Arab Spring, left state-owned Tunisair reeling from the exodus of tourists. Harith had to exit this investment.

A decade later, Covid-19 hit the Lanseria airport. “When the aviation sector was hit, all of a sudden, we had Mango not flying, Kulula not flying … The airport got into a difficult spot,” Makhubela said.

“So what became clear was that the airports are quite exposed. So if one or two customers go down, they can take you down along with them. And that spawned a whole rethink, strategically, about how to insulate yourself.”

Buying an airline would allow Harith to “control its own destiny”, he said.

Last year Harith, as part of a consortium with Lanseria, put in an eleventh-hour bid to buy Comair, which operates Kulula. But another consortium, made up mostly of private individuals, won out.

When SAA became an option, Harith jumped at the opportunity. Last week, Gidon Novick, the chief executive of Takatso said the price of new aircrafts have come down by 50% as a result of Covid-19’s blow to aviation.

Makhubela said: “You don’t want to buy on the high. You want to sell on the high and buy on the low. We’re not saying that we are exploiting the business. But the market is repositioning itself. We think now is a great time.”

[voaafricsha]

South African tycoon Tshepo Mahloele loses $79 million from Capitec stake

the chairman and founder of Lebashe Investment Holding Group, holds a 7.26-percent indirect stake, translating to 8,409,802 ordinary shares in Capitec Bank.

During this period, the market value of his holding in the financial institution climbed from R13.33 billion ($702.52 million) to a formidable R14.08 billion ($742.13 million).

The recent decline in Capitec Bank’s shares has led to a substantial decrease of R1.51 billion ($78.99 million) in Mahloele’s stake in the retail bank, declining from R15.44 billion ($808.98 million) on Oct. 10 to R13.93 billion ($729.99 million) at the time of this report.

[strnow]

South African billionaire Tshepo Mahloele loses $92 million from Capitec stake

Tshepo Mahloele, a prominent investment banker and the founding CEO of Harith General Partners, has seen a significant decline in his stake in Capitec Bank, South Africa’s renowned financial institution, since the start of the year.

Data tracked by Billionaires.Africa reveals that Mahloele’s stake in Capitec Bank has slumped by R1.76 billion ($92.7 million) since Jan. 1; this decline is attributed to the recent downturn in the bank’s shares on the Johannesburg Stock Exchange.

Capitec Bank, established in 1999 and co-founded by Le Roux alongside Jannie Mouton and Riaan Stassen, has solidified its standing over the past two decades, amassing a substantial customer base. With a network of more than 850 branches and 7,400 ATMs across South Africa, the bank has earned a reputation as one of the world’s top retail banking brands.

Mahloele, who is the presiding chairman and founder of Lebashe Investment Holding Group, holds a 7.26-percent indirect stake, translating to 8,409,802 ordinary shares in Capitec Bank.

Since the start of the year, Capitec Bank shares on the Johannesburg Stock Exchange have decreased by 11.26 percent, falling from R1,858.57 ($$97.94) on Jan. 1 to R1,6.649.23 ($86.91) at the time of writing, thus leading to substantial financial losses for shareholders, including Tshepo Mahloele, who owns a significant stake in the group.

As a result of the significant double-digit decline in Capitec Bank’s shares, the market value of Mahloele’s stake in the retail bank has declined by R1.76 billion ($92.7 million) since the start of the year, falling from R15.63 billion ($823.7 million) on Jan. 1 to R13.87 billion ($730.91 million) on Aug. 18.

Despite this substantial financial setback, Mahloele continues to retain his position among the ranks of South Africa’s elite billionaire bankers, underscoring his enduring influence within the Johannesburg Stock Exchange.

Robert Bailey

[mahloeletshepo]

Harith co-founder Tshepo Mahloele is unveiled as the new Africa Patron for the Global Citizen movement

As the patron, Tshepo Mahloele will be the leading voice in rallying millions of citizens to demand that the world’s top political and business leaders stop delaying action with longer-term timelines and focus on what we need to do here and now. 

[mahloeletshepo09]

Global Citizen Partner Harith shares a vision for a greener Africa at the Global Citizen Festival in Accra

Tshepo Mahloele called on African governments and business leaders to join this critical endeavour. The Harith team stressed the importance of taking collective action to build a sustainable future for Africans for generations to come.

[thenow-times]

The truth prevails as Mpati Commission-ordered forensic probe vindicates Harith

Harith General Partners is satisfied that the truth has finally prevailed in the years-long, sustained and malicious campaign to taint it with allegations of malfeasance. This comes after the forensic investigation commissioned by the PIC concluded in its final report that there was no evidence to support the damaging allegations made more than 5 years ago by a Senior Member of Parliament. The report vindicates Harith which has had to operate under a human-made cloud of suspicion, peppered with sporadic, gratuitous, false and unfair political attacks on its brand and reputation. Harith welcomes the fact that the Public Investment Corporation and Government Employees Pension Fund commissioned investigation has made findings that align precisely with every aspect of what we have consistently told South Africans all along; that Harith has been scrupulous in all its dealings with the PIC and the GEPF.

The forensic probe was commissioned jointly by the PIC and the GEPF, in fulfilment of recommendations by the Mpati Commission into the affairs of the PIC. It has now returned with findings that respond directly, adequately and finally to each of the questions the Mpati Commission felt needed further investigation, namely;

“To examine the entire PAIDF [Pan African Infrastructure Development Fund] initiative to determine that all monies due to both parties [PIC and GEPF] have been paid and properly accounted for”

“To determine whether any monies due to overcharging or any other malpractice should be recovered”

“The board of the PIC should examine whether the role played by either Mr Moleketi and Mr Mahloele breached their fiduciary duties or the fit and proper test required of a director in terms of the Companies Act”

In a letter summing up the report’s findings on all these questions, the PIC and GEPF have informed Harith that: “The investigation found that there was no evidence to support the allegations that were made with regard to Harith General Partners and Harith Fund Managers”.

Harith welcomes the forensic investigation findings, and now considers the allegations of impropriety against it, in their various iterations, to be now well and truly ventilated. This latest probe is the fifth process that has looked into these matters, with Harith’s full cooperation, and with none of them making any findings of wrong-doing against the company. The full gambit of processes that have looked into and disposed of these allegations is;

The Mpati Commission; whose outcomes raised a number of unwarranted questions without making any firm findings against Harith, Mr Tshepo Mahloele, and Mr Jabulani Moleketi. Instead of making firm findings, the commission recommended a joint-forensic probe by the PIC and the GEPF.

The Constitutional Court case of UDM v Lebashe and others; which among others found that the UDM and Mr Bantu Holomisa “…did not provide any shred of evidence of actual misconduct, corruption and self-dealing” [UDM v Lebashe judgment, para 59], and “The applicants were not entitled to wantonly defame the respondents under the pretext that they were executing a constitutional duty…it was not for the public benefit to publish the unverified defamatory information” [UDM v Lebashe judgment, para 62]

The South African Venture and Private Capital Association (SAVCA); concluded; “ The committee is of the view that the legal and fee structures set out in the fund terms are in line with industry standards.” And “The committee found no contravention of the SAVCA Code of Conduct based on the information contained in the PIC report and the evidence received from Harith.”

Harith’s own forensic investigation conducted by Crowe Forensics SA and Advocate Terry Motau SC; It investigated the Harith fees structure for the PAIDF PAIDF 1 and PAIDF 2 and found it to be “Comparable at the relevant time period with other Private Equity funds in the industry”. It concluded: “Harith [has] not yet earned any incentive fees – any allegation that the Fund Managers have earned “rich rewards” in regard to incentive fees (carried interest) is therefore without substance. Based thereon, it is therefore apparent that the allegations set out in the PIC Report in regard to the Harith fee structures (for PAIDF 1 and PAIDF 2) are unfounded”

PIC and GEPF joint forensic report; which was ordered by the Mpati Commission and whose outcomes are contained in the latest report.

“Harith operates in the highly-regulated financial services sector, so we are no strangers to, and are quite comfortable with heightened scrutiny. Our line of business requires the utmost fidelity to those who entrust us with their funds and investments. That’s why throughout these processes that have ensued since these allegations were first raised, we have been fully cooperative and played open-cards at every stage”, said Harith CEO Sipho Makhubela.

“This is therefore not a case of Harith being “cleared” by the forensic probe. It is a case of the forensic probe arriving at the only logical destination of the truth-seeking exercise that any conscientious investigation was inevitably destined to reach; a finding that the truth has been on our side all along” – added Makhubela

Throughout all these processes, Harith’s detractors have been able to wantonly, and with no consequence, continue to cast aspersions on a lawfully established and legitimately operating corporate entity, exacting an incalculable toll on the company, its brand, credibility in the market, employees, shareholders, investors, as well as business and financial relationships. Throughout this saga, the callous campaign to destroy Harith and the reputations of Messrs Mahloele and Moleketi was thinly-masked as an exercise of political or parliamentary “oversight”, and insults hurled at them became the trading stock of a politician and his entity who were seeking to shore-up their dimming prospects. Those politicians and their fellow-travellers who gave their lies currency and buoyancy now crawl back into the woodwork, while the victims of their sustained slander are left to repair the extensive damage they wrought on their reputations and brands. The kind of brand and character assassination Mr Holomisa and his ilk embarked upon in the past five years is a sinister perversion of political and constitutional oversight and checks and balances!

Yet, even through this period, Harith was not cowered, and continued to focus on its vision of harnessing Africa’s capital muscle towards the development of socio-economically impactful infrastructure across the continent, an undertaking that was made infinitely harder by this economic sniping campaign. Harith considers this sordid chapter closed, and places its trust in the discerning people of South Africa and the continent, who know too well that “lies have short legs”.

Robert Bailey

[thetimesnow]

The truth prevails as Mpati Commission-ordered forensic probe vindicates Harith

Harith General Partners is satisfied that the truth has finally prevailed in the years-long, sustained and malicious campaign to taint it with allegations of malfeasance. This comes after the forensic investigation commissioned by the PIC concluded in its final report that there was no evidence to support the damaging allegations made more than 5 years ago by a Senior Member of Parliament. The report vindicates Harith which has had to operate under a human-made cloud of suspicion, peppered with sporadic, gratuitous, false and unfair political attacks on its brand and reputation. Harith welcomes the fact that the Public Investment Corporation and Government Employees Pension Fund commissioned investigation has made findings that align precisely with every aspect of what we have consistently told South Africans all along; that Harith has been scrupulous in all its dealings with the PIC and the GEPF.

The forensic probe was commissioned jointly by the PIC and the GEPF, in fulfilment of recommendations by the Mpati Commission into the affairs of the PIC. It has now returned with findings that respond directly, adequately and finally to each of the questions the Mpati Commission felt needed further investigation, namely;

“To examine the entire PAIDF [Pan African Infrastructure Development Fund] initiative to determine that all monies due to both parties [PIC and GEPF] have been paid and properly accounted for”

“To determine whether any monies due to overcharging or any other malpractice should be recovered”

“The board of the PIC should examine whether the role played by either Mr Moleketi and Mr Mahloele breached their fiduciary duties or the fit and proper test required of a director in terms of the Companies Act”

In a letter summing up the report’s findings on all these questions, the PIC and GEPF have informed Harith that: “The investigation found that there was no evidence to support the allegations that were made with regard to Harith General Partners and Harith Fund Managers”.

Harith welcomes the forensic investigation findings, and now considers the allegations of impropriety against it, in their various iterations, to be now well and truly ventilated. This latest probe is the fifth process that has looked into these matters, with Harith’s full cooperation, and with none of them making any findings of wrong-doing against the company. The full gambit of processes that have looked into and disposed of these allegations is;

The Mpati Commission; whose outcomes raised a number of unwarranted questions without making any firm findings against Harith, Mr Tshepo Mahloele, and Mr Jabulani Moleketi. Instead of making firm findings, the commission recommended a joint-forensic probe by the PIC and the GEPF.

The Constitutional Court case of UDM v Lebashe and others; which among others found that the UDM and Mr Bantu Holomisa “…did not provide any shred of evidence of actual misconduct, corruption and self-dealing” [UDM v Lebashe judgment, para 59], and “The applicants were not entitled to wantonly defame the respondents under the pretext that they were executing a constitutional duty…it was not for the public benefit to publish the unverified defamatory information” [UDM v Lebashe judgment, para 62]

The South African Venture and Private Capital Association (SAVCA); concluded; “ The committee is of the view that the legal and fee structures set out in the fund terms are in line with industry standards.” And “The committee found no contravention of the SAVCA Code of Conduct based on the information contained in the PIC report and the evidence received from Harith.”

Harith’s own forensic investigation conducted by Crowe Forensics SA and Advocate Terry Motau SC; It investigated the Harith fees structure for the PAIDF PAIDF 1 and PAIDF 2 and found it to be “Comparable at the relevant time period with other Private Equity funds in the industry”. It concluded: “Harith [has] not yet earned any incentive fees – any allegation that the Fund Managers have earned “rich rewards” in regard to incentive fees (carried interest) is therefore without substance. Based thereon, it is therefore apparent that the allegations set out in the PIC Report in regard to the Harith fee structures (for PAIDF 1 and PAIDF 2) are unfounded”

PIC and GEPF joint forensic report; which was ordered by the Mpati Commission and whose outcomes are contained in the latest report.

“Harith operates in the highly-regulated financial services sector, so we are no strangers to, and are quite comfortable with heightened scrutiny. Our line of business requires the utmost fidelity to those who entrust us with their funds and investments. That’s why throughout these processes that have ensued since these allegations were first raised, we have been fully cooperative and played open-cards at every stage”, said Harith CEO Sipho Makhubela.

“This is therefore not a case of Harith being “cleared” by the forensic probe. It is a case of the forensic probe arriving at the only logical destination of the truth-seeking exercise that any conscientious investigation was inevitably destined to reach; a finding that the truth has been on our side all along” – added Makhubela

Throughout all these processes, Harith’s detractors have been able to wantonly, and with no consequence, continue to cast aspersions on a lawfully established and legitimately operating corporate entity, exacting an incalculable toll on the company, its brand, credibility in the market, employees, shareholders, investors, as well as business and financial relationships. Throughout this saga, the callous campaign to destroy Harith and the reputations of Messrs Mahloele and Moleketi was thinly-masked as an exercise of political or parliamentary “oversight”, and insults hurled at them became the trading stock of a politician and his entity who were seeking to shore-up their dimming prospects. Those politicians and their fellow-travellers who gave their lies currency and buoyancy now crawl back into the woodwork, while the victims of their sustained slander are left to repair the extensive damage they wrought on their reputations and brands. The kind of brand and character assassination Mr Holomisa and his ilk embarked upon in the past five years is a sinister perversion of political and constitutional oversight and checks and balances!

Yet, even through this period, Harith was not cowered, and continued to focus on its vision of harnessing Africa’s capital muscle towards the development of socio-economically impactful infrastructure across the continent, an undertaking that was made infinitely harder by this economic sniping campaign. Harith considers this sordid chapter closed, and places its trust in the discerning people of South Africa and the continent, who know too well that “lies have short legs”.

Eva Henke

[investopediags]

South African tycoon Tshepo Mahloele loses $79 million from Capitec stake

During this period, the market value of his holding in the financial institution climbed from R13.33 billion ($702.52 million) to a formidable R14.08 billion ($742.13 million).

Capitec Bank, which was established in 1999 and co-founded by Michiel Le Roux alongside Jannie Mouton and Riaan Stassen, has solidified its position over the last two decades. The leading retail bank has amassed a substantial customer base and garnered a reputation as one of the world’s foremost retail banking brands.

10 to R1,656.72 ($86.8), thus leading to substantial financial losses for shareholders, including Tshepo Mahloele, who owns a significant stake in the group.

The recent decline in Capitec Bank’s shares has led to a substantial decrease of R1.51 billion ($78.99 million) in Mahloele’s stake in the retail bank, declining from R15.44 billion ($808.98 million) on Oct. 10 to R13.93 billion ($729.99 million) at the time of this report.