Dexter failed to deliver on promises

2011-03-26 18:31

A French mining company gave Cope MP Phillip Dexter his ­marching orders last year after he failed to secure mining operations for the firm in South Africa.

Dexter promised Urafields Limited, a company that specialises in uranium exploration, that he could “open up” the markets and secure access to mining ministers and ministries in South Africa and Africa.

In return, Dexter was given a 30% shareholding in Urafields and his share option – registered as fully paid – had the potential to make him an overnight multimillionaire.

He was listed as the company’s vice-president at the time.

But Dexter failed to deliver, and the company kicked him out and cancelled his share option agreement in August last year – only 15 months into the agreement.

However, Dexter said the 3 000 shares were wrongly issued to him.

“I own no shares (in Urafields). The company is a shell and has no value,” he told City Press.

Dexter’s denial of the existence of the company is questionable given that he was a guest at a private party in France last year where Urafields executives were wined and dined by the Nomura Investment Bank (special adviser to the Urafields Group).
 
In an email response from France, Urafields chairperson and CEO Patrick Sagaspe told City Press that Dexter held no ­position or shares in Urafields.

He also sarcastically stated: “I find it impressive that your ­investigative skills came up with the old news that Mr Dexter was a vice-president and had 3 000 shares.”

Dexter is currently being investigated for failing to disclose to ­Parliament his shares in Urafields.

Dexter declared a R1 000 pen gift he received from Urafields last year.

He said there was no need to ­declare the 3 000 shares.

“The deal was not completed. Why would I ­declare shares that are not mine?”

But a Urafields letter, dated ­August 16 last year, cancelling Dexter’s share option does not indicate that the shares were been wrongly issued to him instead of his family trust.
 
The letter, signed by Sagaspe, outlined Dexter’s obligations when he took the share option:
» Provide Urafields access to ­ministers and ministries to achieve the company’s legal goals;

» Provide guidance with financial and banking institutions;

» Help Urafields to find the best ­local BEE partners; and

» Provide to Urafields details of potential uranium, diamond and gas mining operations in South ­Africa.
 
Dexter failed to do this. At a Urafields special shareholders’ meeting in August last year, it was decided to “cancel, with immediate effect, your 30% share option agreement”.

In the letter, which Dexter provided to City Press to prove he had nothing to do with the firm, Urafields explained why it had let Dexter go.

“(He) never met his obligation to finalise mining operations in South Africa, never finalised the BEE ­partnership, and never met his ­obligation to finalise with financial and banking institutions in Africa.”

Urafields was registered on June 15, 2009 in Mauritius as a private company with limited shares. It ­issued 10 000 shares, which are held by four shareholders.

According to the share certificate, Dexter acquired his “fully paid” 3 000 shares on the day the company was registered in Mauritius.

The Urafields website says that the firm has “consolidated 14 exploration licences, obtained by predecessor companies run by its founders, in widely recognised uranium-rich areas of Namibia and South Africa”.

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