Sharenet Sites 
Sharenet Sites
Media release
Sekunjalo Investments Limited
(Incorporated in the Republic of South Africa)
Registration number 1996/006093/06
Share code: SKJ
ISIN: ZAE000017893
("Sekunjalo" or “the Company”)
SENS Sekunjalo rejects the scurrilous attempt by Times Media
Group, Sunday Times to smear its reputation and good name
Chief Executive Officer of Sekunjalo Investments Limited, Mr
Khalid Abdulla said “the latest attempt by the Sunday Times is a
cheap shot aimed at Sekunjalo”. It is well known that Premier
Fishing SA (Pty) Ltd (Premier Fishing) is in discussion with the
Competition Commission around an investigation into the small
pelagic industry and this is yet another desperate attempt by
the Sunday Times to portray Premier Fishing in a bad light.
Sekunjalo has been subjected to defamatory attacks by the Times
Media Group (TMG) over the last few months since Sekunjalo
Holdings acquired the competitor to TMG, Independent News Media
South Africa (INMSA). TMG Newspapers and online has published
almost 60 articles on Sekunjalo since its acquisition of INMSA.
In almost all instances the articles are defamatory and an
attempt to paint a negative picture of Sekunjalo in the eyes of
the public, readers and advertisers. This shameful attempt
by Sunday Times and TMG's associated newspapers and online sites
is a desperate attempt to undermine INMSA in the market place.
Premier Fishing and Sekunjalo are very hesitant to comment as we
respect the authority of the Competition Commission during this
process. However, Sekunjalo has been forced to defend its public
reputation due to the malicious campaign by the Sunday Times to
defame the company. This is the second time in as many months
that the Sunday Times completely disregards and disrespects
regulatory authorities and their process by publishing
information which is not complete and uses it to create the
impression that the company has committed a transgression.
The complaint against Oceana, (the largest industry player in
small pelagics) and smaller fishing companies such as Premier
Fishing relates to the use by the entire industry of the
application of a raw fish formula to determine the remuneration
of vessel owners, skippers and crew. It should be noted, that
the process of remunerating skippers, crew and boat owners was
prevalent across the pelagic industry for more than 40 years,
pre-existing the acquisition of Premier Fishing by Sekunjalo
Investments Ltd.
The matter involving Premier Fishing is much narrower in scope
than the matter relating to all the other fishing companies and
in respect of which Oceana concluded a consent order with the
Competition Commission. The alleged contraventions of the
Competition Act are technical in nature and not typical of
blatant collusive activity and we reserve our rights in this
matter.
Mr Abdulla referred the media to a press statement issued by
Oceana when they signed a consent agreement with the Competition
Commission, CEO Francois Kuttel said, “The bulk of the penalty
relates to open negotiations which were in place for the purpose
of compensating skippers, crew, and some private boat owners in
the small pelagic industry for over four decades. Whilst it was
technically a contravention of the Competition Act, we believed
this activity was covered by the exemption relating to
collective bargaining.”
Premier Fishing made it very clear that it was one of the few
fishing companies that tried to change the collective bargaining
process but it was rejected by the skippers and crew. Premier
Fishing has provided the Competition Commission with this record
of interaction.
The Sunday Times has deliberately tried to misinform the public
and create the impression that the technical contravention of
the Act was recent. The facts are however, Premier Fishing
exited the collective bargaining arrangements after the sale of
its cannery and fish meal plant during 2006. The complaints
against it, which relate to its canning operations, are
therefore historic complaints. Moreover, it was not a
significant competitor in the market during the relevant times.
Whilst Premier Fishing has been engaged in a settlement
negotiation with the Competition Commission to deal with this
matter, taking into account the legal costs and management time,
Premier Fishing does not believe that it has been guilty of
contravening the Competition Act in relation to any matter
involving the pelagic industry.
As far as Premier Fishing is aware, the Competition Commission
has not yet referred the matter against Premier Fishing to the
Tribunal for hearing and any potential financial outcome has
already been accounted for previously by the Company.
We reiterate, Sekunjalo Investments Ltd and its subsidiaries are
fully compliant with the legal, ethical and corporate governance
framework in South Africa and we emphatically reject any attempt
to suggest that it or any of its subsidiary companies have been
involved in blatant collusive practices.
Premier Fishing and Sekunjalo will not issue any further comment
until the matter is resolved with the Competition Commission and
ask people to respect regulatory processes in this country.
It is clear that Times Media Group and its publications have no
regard for regulatory institutions and due processes. We are not
surprised.
Cape Town
18 February 2014
Sponsor
PSG Capital
Date: 18/02/2014 07:07:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
