Parliament, Wednesday, 31 July 2019 – The Select Committee on Public Enterprises and Communications said it’s unacceptable that the Department of Public Enterprises does not have a shareholder agreement of Forever Resorts after the sale of properties and disposal of its assets.
Aventura, a former state-owned company, had 14 resorts in 2001. Cabinet took a decision to dispose of Aventura’s assets as they were no longer relevant to government’s core business. Eight resorts were sold to Forever Resorts with Siyonwaba Consortium as the BBBEE (broad-based black economic empowerment) partner. The Overvaal Resort Act that established the Aventura state-owned company is no longer relevant, hence the need for repealing the Act.
The committee was briefed by the Department of Public Enterprises on Wednesday, on the progress report of Aventura.
On the shareholder agreement, the department said it has been experiencing problems in getting a copy of the shareholder agreement, but Forever Resorts has agreed for the department to view the agreement in September. If there is something the department can use from the shareholder agreement, the department will take the matter forward. The department conceded that it needed to have a shareholder agreement but informed the committee that what it has now is a purchase and sale agreement.
The committee said the department should come and update the committee in September after it has met with Forever Resorts.
Briefing the committee, the department said it embarked on a parliamentary process to repeal the Overvaal Act in 2018. The repeal was approved by both portfolio and select committees. During the public hearings, there were concerns raised by a group of former disgruntled Aventura employees. The concerns, among other things, relate to 30% shareholding from Siyonwaba that Forever Resorts is holding as part of the employees’ share ownership scheme, and the perceived failure by government to protect the interests of the employees.
The Chairperson of the committee, Mr Tshitereke Matibe, said: “If it was not for the repeal of the Act, issues pertaining to the workers were not going to be addressed. The department has been dealing with this matter for almost 20 years, and it has not been finalised. Our concern as the committee is the welfare of the employees.”
The committee expressed its concern about a preliminary legal opinion that the department has sought on the matter. Mr Matibe said: “The preliminary legal opinion does not assist the committee in making a final decision. The department needs to secure a final legal opinion so that a decisive action can be taken and communicated.”
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE SELECT COMMITTEE ON PUBLIC ENTERPRISES AND COMMUNICATIONS, MR TSHITEREKE MATIBE.
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