Dimension Data takes legal action against former executives over sale of Joburg headquarters

Dimension Data is taking legal action against six former executives over the sale of its prominent Johannesburg headquarters, the Campus, alleging a below-market price was set in exchange for kickbacks.  

The executives deny the allegations, but nevertheless, they could constitute a significant setback for the organisation that was once a star player in the South African tech sector. The allegations are a particular embarrassment for Jeremy Ord, Didata’s co-founder and a lifelong leader in SA’s tech world.

Didata was once a constituent on the London Stock Exchange’s FTSE 100 Index, but somewhat lost its way before being bought by Japanese tech group NTT in 2012 for R24-billion. Yet it remains a crucial player on the African tech scene, particularly in the network integration business.

The organisation said in a statement that an extensive investigation had been undertaken regarding the sale of the group’s Campus property in 2019. The investigation revealed that former senior executives, including Ord, Jason Goodall, Grant Bodley, Steven Nathan, Saki Missaikos and Bruce Watson “did not disclose their personal financial interest in the transaction and wrongfully induced the conclusion of the transaction”. 

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The group constitutes many people who were once at the highest level of the organisation. All have now left Didata, including Ord, who stood down as executive chairman in 2021. The African and Middle East business of Didata was taken over by Alan Turnley-Jones in June last year, following the departure of Didata long-timer Werner Kapp. 

The company has not disclosed the extent of the alleged fraud, but the sale would have amounted to several hundred million rands. The company did say its investigation had revealed that the purchaser of the Campus, Identity Fund Managers, paid a secret commission to one of these former executives, without specifying the extent of the commission.

“NTT Ltd and Dimension Data place ethical leadership and governance at the heart of their business and will not tolerate any such violations at any level of the organisation,” the company said.

Bodley, speaking on behalf of all six executives, told the website TechCentral that “allegations against us lack merit and are denied. We look forward to presenting our defence to the allegations in court.” DM/BM