Forayintothe restoftheAfricancontinenta game-changerforAYO...Task F or ce)" t o Saab Grintek with...
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The copyright act of 1978 (as amended) prohibits the reproduction of this copy IN ANY FORMAT, (See Clause 4 Terms and Conditions) without prior permission of the original publisher. Publication CAPE TIMES BUSINESS REPORT Page 12 Date Mon 23 Mar 2020 AVE (ZAR) 25594.25 Foray intotherestoftheAfrican continent a game-changer forAYO THE ANNUAL General Meeting (AGM) of AYO Technology Solutions hasbeen delayed today asaresult of the corona- virus pandemic - at a critical time for the company and for black economic empowerment. Public companies are required to hold AGMs. However, South Africa will see many AGMs delayed in line with rec- ommendations made by the South African government to inhibit the spread of Covid-19. According to the Companies and Intellectual Property Commission, AGMs must be held to provide, among others, for presentation of the audited financial statements for the immedi- ately preceding financial year and the appointment of the auditors and the audit committee. PIC's transformation agenda In October 2019, the Public Invest- ment Corporation (PIC), "reacting to a letter received from AYO, backtracked on the allegations made - by its acting executive head of legal, governance and compliance, Lindiwe Dlamini -in Parliament that Sekunjalo Investment Holdings, through AYO, wassiphoning PIC-invested funds offshore". Now that the report of the Judicial Commission of Inquiry into the PIC is out, the PIC mustpositively contribute to the stability in AYO and assistin building it as a formidable black eco- nomic empowered company. The PIC must go back to its former glory as an agent of transformation when it brought shareholder activism to the fore in South Africa and its executiveswere not known asthe ones who easilyshied away from corporate fights in pursuit ofinclusive economy. The IOL website reported in 2010 TECHNOLOGY SELLOMASHAORASETHABA transformation and exorbitant execu- tive pay". Molefe clashedwith Shop- rite management over chief executive Whitey Basson 'sR59 million pay pack- age. This was during the negotiations of a management buyout by Brait Pri- vate Capital." In 2009, the PIC voted against the Mapitso consortium's participa- tion in Tiger Brand's black economic empowerment deal, becausethe group comprised current and former non- executive directors ofthe company. In 2007, the PIC took on Barlow- orld over the lack of transformation at the company. They gave notice that the PIC would be taking a closer look at how executive remuneration levels were determined at the companies in which the PIC had invested. The PIC had complained that Bar- loworld had never had a black exec- utive director. At the AGM, Warren Clewlow also announced that Isaac Shongwe, a senior executive in the logistics division, would become the chief executive of Barloworld Logistics Africa and would join Barloworld asan executive director. Clewlow then said Shongwe, in his capacity as the first black execu- tive director of the group, would also have responsibility for empowerment, transformation and socialinvestment. During those times the PIC sent out a messageto listed companiesthat "companies that are not transformed asthey should be, should take action themselves rather than waiting their turn for us to engagethem." The PIC ruffled feathers.This is the role that we expect the PIC to play in companies they have invested in. AYO and the defence industry Business from the African Union is very important for AYO, because of continuing defence budget cuts in South Africa. On July 17, 2019, the IOL website reported that Defence and Military Veterans Minister Nosiviwe Mapi- sa-Nqakula said the defence budget cuts were making the South African National Defence Force (SANDF) more unsustainable. Briefing the media ahead of her budget vote speech, Mapisa-Nqakula said the department had been con- tinuously forced to adjust its plans downwards in responseto the declin- ing budget. "The defence force is becoming progressively more unsustainable in terms of declining defence allocations. We have now reachedthe point where the Republic must decide on the kind of defence force it wants and what it can afford," she said. In the upcoming AYO AGM, one of the highlights will be discussing the investment it made in Global Command and Control Technologies (GCT) in March 2017. GCT is a leading technology pro- vider for enabled awarenesssolutions across the commercial, security and military domains for the past20 years. Its solutions include assetand force tracking across the globe (land, air or maritime); integrated situational awarenesspictures to support manag- ers, leaders and commanders to make informed and timeous decisions; con- structive simulation technology to do planning, optimisation and rehearsal from ground level to mission HQs, operations centresand war rooms. African Equity Empowerment Investments together with AYO now hold 100 percent of the sharesin the new company , called GCT. GCT has existed in various forms since 1982, when it was moved out of the then Andromeda (state-owned) into the Altech Group as the first phase of establishment of a national command and control strategy of the SANDF. AYO is working hard to find busi- nessopportunities offering itsproducts and competence and is looking at African Union (AU) possibilities. In 2019, the AU awarded the "Pro- vision of command, control, com- munication and information for Task Force MNJTFE (Multi-National Joint Task Force)" to Saab Grintek with development aid from the EU. Saab divested the Command Control Train- ing & Simulation business from its subsidiary, Saab Grintek Defence in South Africa. On August 1, 2016, the European Commission issued a statement on the Joint Communiqué by Federica Mogherini, EU High Representative and vice-president of the commission; Neven Mimica, EU Commissioner for International Co-operation and Development; and Smail Chergui, AU Commissioner for Peaceand Security. The agreementwasabout a €50 mil- lion (R939.5m) support from the EU's "African PeaceFacility" to the MNJTE It was also stated that the support will allow for the construction and maintenance of MNJTFEheadquarters in Ndjamena, Chad, aswell as of sector headquarters in Cameroon and Niger. The aid would also provide trans- port and communication assets to the force headquarters, allowing for effective co-ordination and command of military operations. These assets, including vehicles, aerial transporta- tion and reconnaissance capacities and a command, control, communication and information system, would put the central command in a position to co-ordinate operations among troop contributing countries in their respec- tive territories. President Cyril Ramaphosa on assuming the chair of the AU for 2020 in an acceptancespeechsaidit wasthe task for all African countries to build an Africa that was prosperous and at peace with itself. He further said that African coun- tries must strive to deepen the unity of the continent and advance "inclu- sive economic growth and sustainable development". The investment by AYO in GCT will play a significant role in that regard. One of the Flagship Projects of AU's Agenda 2063 is "Silencing the guns by 2020." To achieve the goals of Agenda 2063, Africa needs to work towards ending all wars, civil conflicts, gen- der-based violence, violent conflicts and preventing genocide. SelloMashao Rasethaba is a director ofbothAYO TechnologySolutions and Global Command and Control Technologiesand writesin hispersonal capacity.
Transcript of Forayintothe restoftheAfricancontinenta game-changerforAYO...Task F or ce)" t o Saab Grintek with...
The copyright act of 1978 (as amended) prohibits the reproduction of this copy IN ANY FORMAT, (See Clause 4 Terms and Conditions) without prior permission of the original publisher.
Publication
CAPE TIMES BUSINESS REPORT
Page
12
Date
Mon 23 Mar 2020
AVE (ZAR)
25594.25
ForayintotherestoftheAfricancontinentagame-changerforAYOTHE ANNUAL General Meeting (AGM)of AYO Technology Solutions hasbeendelayed today asa result of the corona-virus pandemic - at a critical time forthe company and for black economicempowerment.
Public companies are required tohold AGMs.
However, South Africa will seemany AGMs delayed in line with rec-ommendations made by the SouthAfrican government to inhibit thespread of Covid-19.
According to the Companies andIntellectual Property Commission,AGMs must be held to provide, amongothers, for presentation of the auditedfinancial statements for the immedi-ately preceding financial year and theappointment of the auditors and theaudit committee.
PIC's transformation agendaIn October 2019, the Public Invest-ment Corporation (PIC), "reacting to aletter received from AYO, backtrackedon the allegationsmade - by its actingexecutive head of legal, governanceand compliance, Lindiwe Dlamini -inParliament that Sekunjalo InvestmentHoldings, through AYO, wassiphoningPIC-invested funds offshore".
Now that the report of the JudicialCommission of Inquiry into the PIC isout, the PIC must positively contributeto the stability in AYO and assistinbuilding it as a formidable black eco-nomic empoweredcompany.
The PIC must go back to its formerglory as an agent of transformationwhen it brought shareholder activismto the fore in South Africa and itsexecutives were not known asthe oneswho easily shied away from corporatefights in pursuit of inclusive economy.
The IOL website reported in 2010
TECHNOLOGY
SELLOMASHAORASETHABA
transformation and exorbitant execu-tive pay". Molefe clashed with Shop-rite management over chief executiveWhitey Basson'sR59 million pay pack-age.This was during the negotiationsof amanagement buyout by Brait Pri-vate Capital."
In 2009, the PIC voted againstthe Mapitso consortium's participa-tion in Tiger Brand's black economicempowerment deal, becausethe groupcomprised current and former non-executive directors of the company.
In 2007, the PIC took on Barlow-orld over the lack of transformation atthe company. They gave notice thatthe PIC would be taking a closer lookat how executive remuneration levelswere determined at the companies inwhich the PIC had invested.
The PIC had complained that Bar-loworld had never had a black exec-utive director. At the AGM, WarrenClewlow also announced that IsaacShongwe, a senior executive in thelogistics division, would become thechief executive of Barloworld LogisticsAfrica and would join Barloworld asanexecutive director.
Clewlow then said Shongwe, inhis capacity as the first black execu-tive director of the group, would also
have responsibility for empowerment,transformation and socialinvestment.
During those times the PIC sentout amessageto listed companies that"companies that are not transformedasthey should be, should take actionthemselves rather than waiting theirturn for us to engage them." The PICruffled feathers.This is the role that weexpect the PIC to play in companiesthey have invested in.
AYO and the defence industryBusiness from the African Union isvery important for AYO, because ofcontinuing defence budget cuts inSouth Africa.
On July 17, 2019, the IOL websitereported that Defence and MilitaryVeterans Minister Nosiviwe Mapi-sa-Nqakula said the defence budgetcuts were making the South AfricanNational Defence Force (SANDF) moreunsustainable.
Briefing the media ahead of herbudget vote speech, Mapisa-Nqakulasaid the department had been con-tinuously forced to adjust its plansdownwards in responseto the declin-ing budget.
"The defence force is becomingprogressively more unsustainable intermsof declining defenceallocations.We have now reached the point wherethe Republic must decide on the kindof defence force it wants and what itcan afford," she said.
In the upcoming AYO AGM, oneof the highlights will be discussingthe investment it made in GlobalCommand and Control Technologies(GCT) in March 2017.
GCT is a leading technology pro-vider for enabled awarenesssolutionsacross the commercial, security andmilitary domains for the past20 years.
Its solutions include assetand forcetracking across the globe (land, airor maritime); integrated situationalawarenesspictures to supportmanag-ers, leaders and commanders to makeinformed and timeous decisions; con-structive simulation technology to doplanning, optimisation and rehearsalfrom ground level to mission HQs,operations centresand war rooms.
African Equity EmpowermentInvestments together with AYO nowhold 100 percent of the shares in thenew company, called GCT.
GCT has existed in various formssince 1982, when it was moved outof the then Andromeda (state-owned)into the Altech Group as the firstphase of establishment of a nationalcommand and control strategy of theSANDF.
AYO is working hard to find busi-nessopportunities offering itsproductsand competence and is looking atAfrican Union (AU) possibilities.
In 2019, the AU awarded the "Pro-vision of command, control, com-munication and information for TaskForce MNJTFE (Multi-National JointTask Force)" to Saab Grintek withdevelopment aid from the EU. Saabdivested the Command Control Train-ing & Simulation business from itssubsidiary, Saab Grintek Defence inSouth Africa.
On August 1, 2016, the EuropeanCommission issued a statement onthe Joint Communiqué by FedericaMogherini, EU High Representativeand vice-president of the commission;Neven Mimica, EU Commissionerfor International Co-operation andDevelopment; and Smail Chergui, AUCommissioner for Peaceand Security.
The agreementwasabouta€50 mil-lion (R939.5m) support from the EU's
"African PeaceFacility" to the MNJTEIt was also stated that the supportwill allow for the construction andmaintenance of MNJTFEheadquartersin Ndjamena, Chad, aswell asof sectorheadquarters in Cameroon and Niger.
The aid would also provide trans-port and communication assets tothe force headquarters, allowing foreffective co-ordination and commandof military operations. These assets,including vehicles, aerial transporta-tion and reconnaissance capacities anda command, control, communicationand information system, would putthe central command in a position toco-ordinate operations among troopcontributing countries in their respec-tive territories.
President Cyril Ramaphosa onassumingthe chair of the AU for 2020in an acceptancespeechsaidit wasthetask for all African countries to buildan Africa that was prosperous and atpeacewith itself.
He further said that African coun-tries must strive to deepen the unityof the continent and advance "inclu-sive economic growth and sustainabledevelopment".
The investment by AYO in GCTwill play a significant role in thatregard. One of the Flagship Projectsof AU's Agenda 2063 is "Silencing theguns by 2020."
To achieve the goals of Agenda2063, Africa needs to work towardsending all wars, civil conflicts, gen-der-based violence, violent conflictsand preventing genocide.
SelloMashaoRasethaba is a directorof bothAYO TechnologySolutionsand Global Command and ControlTechnologiesand writes in hispersonalcapacity.
