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 * Political ties weigh on Ngcuka’s Vodacom bid **


 * Thabiso Mochiko, Business Report, Johannesburg, 18 February 2008**

Johannesburg - Former Scorpions boss Bulelani Ngcuka's political connections may cost him a coveted Vodacom black economic empowerment (BEE) stake and have delayed the selection of a BEE partner, according to a source who was involved in the talks.

The source told Business Report last week that the new ANC leadership had raised concerns with Vodacom about an absence of "broad-based" partners within a consortium that includes Ngcuka. The source said bidding consortiums, including Ngcuka's, had not brought in new broad-based players.

According to a document seen by Business Report, Ngcuka formed a partnership, called Amandla Omoya, with former Telkom regulatory head Nkenke Kekana's Mowana Five Mile (M5M), Reuel Khoza's AKA Capital and Anna Mokgokong's PTA, to improve his chances for the stake. M5M has 90 percent broad-based elements, while AKA has 24 percent and Ngcuka's Vuwa Investments 19.7 percent. But the consortium's broad-based nature was still called into question.

The source said the ANC's objection to the deal had more to do with the fact that Ngcuka was out of favour with the new power bloc, led by Jacob Zuma, against whom Ngcuka initiated corruption charges.

Vodacom has rejected these claims. Spokesperson Dot Field conceded that next month's deadline would not be met, but this was because "new directives" had been issued by the shareholders and there were "changes in the structures of some consortiums". She would not discuss the changes further.

Ngcuka was not prepared to comment. He already owns 35 percent in Sail, which does events promotion for Vodacom. Telkom owns 50 percent of Vodacom and the government owns 38 percent of Telkom.

Jessie Duarte, the ANC's spokesperson, said: "The ANC doesn't get into deals. This has not been discussed at the national executive committee."

Vodacom's BEE deal, which attracted 60 consortiums, has taken close to two years to finalise. Last year chief executive Alan Knott-Craig said it could not be delayed any longer.


 * From: http://www.busrep.co.za/index.php?fArticleId=4259796**

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