Chancellor House (company)

Chancellor House is a South African holding company managing investments in the mining, engineering, energy and information technology sectors.[3][4] It is named after Chancellor House, the building where the law firm of Nelson Mandela and Oliver Tambo was located.

This article is about a company linked to the Africa National Congress. For the building in Johannesburg, see Chancellor House (building).

Chancellor House
TypeInvestment Holding Company
FoundedMarch 2003
Headquarters46B Wierda Road West, Wierda Valley, Sandton, Johannesburg, South Africa
Area served
South Africa
Key people
Khanyisile Kweyama (Chairperson)[1]
Mogopodi Mokoena (CEO)[2]
Websitehttps://www.chh.co.za/

After initially being exposed as a surreptitious funding front for the African National Congress (ANC) it was subsequently acknowledged as an in-house investment firm for the party.[5] It is best known for the controversy surrounding the award to it of lucrative black economic empowerment and parastatal contracts.

History

The existence of the company was first revealed to the public in 2006. A Mail & Guardian newspaper article alleged that the company had been formed in 2003 on the initiative of Mendi Msimang, then treasurer-general of the ANC, with the explicit intention of raising funds for the party.[6]

Prior to the newspaper report the company was virtually unknown; Kgalema Motlanthe, then secretary general of the party, reportedly first learned of it when contacted by the newspaper for comment.[7]

In September 2021, the company itself admitted that it served as a funding vehicle for the ANC.[8]

On 10 November 2021, Mamatho Netsianda and Zwelibanzi Nzama, a senior executive, were implicated in a politically connected real estate development project dating back to 2008. Land above Sandton station had been transferred by the City of Johannesburg, but payment had never been received.[9]

Eskom contract

In November 2007 parastatal electricity supplier Eskom awarded for six steam generators worth R20 billion, to a consortium including Hitachi Power Africa. At the time of the award that company was 25% owned by Chancellor House.[10]

In February 2008 the ANC said it would appoint advisers with a view to transparently exiting the transaction due to governance issues.[11] In March 2008 the office of the Public Protector said an investigation into the transaction was underway.[12]

Following charges under the Foreign Corrupt Practices Act by the Securities and Exchange Commission, Hitachi agreed to a $19 million settlement in September 2015.[13] These perceptions of poor accountability, transparency and management associated with the ANC also attracted criticism from the Democratic Alliance, an opposition party.[14]

References
  1. "Board Members". Chancellor House. Retrieved 5 January 2022.
  2. "Executive Management". Chancellor House. Retrieved 5 January 2022.
  3. Robinson, Vicki; Brmmer, Stefaans (10 November 2006). "The ANC's new funding front". Mail & Guardian. Retrieved 28 October 2021.
  4. Staff Writer (10 November 2006). "Other Chancellor House investments". Mail & Guardian. Retrieved 28 October 2021.
  5. Brmmer, Stefaans (26 January 2007). "ANC admits it used BEE funding front". Mail & Guardian. Retrieved 28 October 2021.
  6. Robinson, Vicki; Brmmer, Stefaans (10 November 2006). "The ANC's new funding front". Mail & Guardian. Retrieved 28 October 2021.
  7. Paton, Carol (19 January 2007). "Financing the ANC: Untold Millions". Financial Mail. Archived from the original on 11 May 2011. Retrieved 28 October 2021.
  8. Cowan, Kyle (11 September 2021). "'Yes, we fund the ANC' says Chancellor House after more than a decade of denials of ANC influence on major deals". News24. Retrieved 28 October 2021.
  9. Comrie, Susan (10 November 2021). "The R280m Joburg 'crime scene': Strategic friends (part two)". amaBhungane. Retrieved 10 November 2021.
  10. Creamer, Terence (7 December 2007). "Hitachi Power Africa assures relationship with ANC-linked company is above board". Engineering News. Retrieved 28 October 2021.
  11. "Chancellor House to exit Eskom deal". IOL. 21 February 2008. Retrieved 28 October 2021.
  12. Staff Reporter (10 March 2008). "Public Protector eyes Eskom-Chancellor House issue". Mail & Guardian. Retrieved 28 October 2021.
  13. "SEC Charges Hitachi With FCPA Violations". U.S. Securities and Exchange Commission. 28 September 2015. Retrieved 28 October 2021.
  14. Nicholson, Greg (8 October 2015). "Maimane takes corruption fight to Chancellor House". Daily Maverick. Retrieved 28 October 2021.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.