- Dimension Data has launched a probe into allegations that former executives may have benefitted financially from the sale of its office park in 2019.
- A report found that some executives did not disclose their personal financial interest in the sale of The Campus.
- The company is taking legal advice.
Technology group Dimension Data may take legal action against former executives who are accused of impropriety during the sale of its office park, The Campus.
The large office park north of Johannesburg was sold to Identity Property Co., a black women-owned investment firm co-founded by Sonja de Bruyn, in 2008. The value of the transaction was not disclosed.
According to a statement by the company, "certain of its executives did not disclose their personal financial interests in the sale of The Campus".
The company would not reveal the nature of the conflict of interest involved, nor the identities of those implicated.
"We are in the process of taking legal advice and, as such, we cannot divulge the names or number of the executives or any further details of the report at this stage," it said.
TechCentral reported that Dimension Data's parent company, NTT, appointed international law firm Herbert Smith Freehills to conduct a forensic investigation into allegations brought forward by a whistle blower. The Japanese firm acquired Dimension Data in 2010.
De Bruyn told FIN24 that Identity Propco entered into The Campus transaction "in good faith as it represented a notable opportunity to increase black female participation in the property sector".
"Our standard due diligence process for the transaction did not reveal anything irregular," she said.
Identity Propco has not been implicated in the independent investigation. De Bruyn further stated that the transaction was concluded in 2019, and in the latter half of 2021 they we were later notified by NTT that an independent investigation was under way into the affairs of deal.
"We have been informed by NTT and Dimension Data that the report found conflicts of interest relating to the fact that certain executives did not reveal their personal financial interests in The Campus transaction."
Dimension Data said it had taken the decision to ratify the transaction, subject to dealing with the exit of the executives in a manner which preserves the original objectives of the transaction.
"Based on the steps that the company is taking, the current BEE status remains unchanged."