Ramaphosa gives up control of business interests

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ANC deputy president Cyril Ramaphosa. The Democratic Alliance has alleged that Ramaphosa's blue light convoy hit a cyclist in Wedela, west of Johannesburg.

ANC deputy president Cyril Ramaphosa. The Democratic Alliance has alleged that Ramaphosa's blue light convoy hit a cyclist in Wedela, west of Johannesburg.

WEB_PHOTO_Cyril_Ramaphosa_090214

ANC deputy president Cyril Ramaphosa. The Democratic Alliance has alleged that Ramaphosa's blue light convoy hit a cyclist in Wedela, west of Johannesburg.

ANC deputy president Cyril Ramaphosa. The Democratic Alliance has alleged that Ramaphosa's blue light convoy hit a cyclist in Wedela, west of Johannesburg.

JOHANNESBURG - Deputy President Cyril Ramaphosa announced on Monday that he had handed over control of his investments to a trust in order to prevent conflict of interest in his new political role. 

Ramaphosa said he had started the process of selling his shares in the Shanduka Group.

"Shanduka&39;s majority shareholders have entered into an agreement that will, among other things, result in my complete divestment from the Group," Ramaphosa said in a statement.

"In the interim, my family&39;s interests will be held in blind trusts."

A blind trust is one that independently administers the private business interests of a person in public office to prevent conflict of interest.

Therefore, for the time being, although Ramaphosa may be giving up administrative control of his interests in the company, he is not necessarily giving up financial benefits from the company.

The Shanduka founder said that over past 17 months he had stepped down from the boards of several companies and resigned as Shanduka Group executive chairman.

An example of one such board that Ramaphosa had stepped down is the MTN board of directors, according to his spokesman Thabo Masebe.

This latest transaction would allow Ramaphosa "to exit his business interest in Shanduka and focus on his responsibilities in government".

Pembani Group, led by entrepreneur Phuthuma Nhleko, Ramaphosa&39;s family trust Jadeite Limited and Standard Bank, amongst others, have entered into an agreement to combine their interests and create a new black-controlled natural resources and industrial holding group.

The group will have assets with a gross value of more than R13.5-billion.

In January last year, following Ramaphosa&39;s election as deputy president at the African National Congress 2012 Mangaung conference, it was announced that he would step down from his positions at mining company Lonmin and packaging group Mondi.

Ramaphosa was a non-executive board member at Lonmin and a joint chairman at Mondi Limited and Mondi Plc.

"In the course of the next few weeks, I will take any further practical steps necessary to ensure that I comply with requirements of the Executive Ethics Code and uphold the integrity of my office," he said.

Ramaphosa said he would continue to be involved in the Shanduka Foundation, a non-profit organisation that works in the areas of school development, skills development and enterprise development.

He founded Shanduka Group in 2001.

Shanduka is invested in a portfolio of listed and unlisted companies and has holdings in the resources, food and beverage industries.

The group also invests in the financial services, energy, telecommunications, property and industrial sectors.

Shanduka has investments in South Africa, Mozambique, Mauritius, Ghana and Nigeria.

Masebe referred enquiries of the exact worth of these interests to the Shanduka Group.

Additional reporting by Nonkululeko Ngqola.

See Ramaphosa&39;s full statement below.

 

Statement by Deputy President Ramaphosa on Management of His Business Interest