BEE partnership goes belly up
A Black Economic Empowerment deal in Mpumalanga has been dissolved because the participating companies couldn't agree to the share allocation.
Hux Technologies, an information technology firm, and its BEE partner, Gubevu Holdings, reached a deadlock about the share agreement after entering into a joint venture five years ago. The collapse of the BEE partnership comes after Gubevu, a black-owned company, accused their partners of "fronting and exploiting" them.
"Gubevu Holdings did not benefit while its BEE status was used to benefit its white partners in Hux Technologies," said Force Maduna, a co-director at Gubevu.
Hux Technologies managing director Leon van der Merwe said the deal collapsed after differences that could not be resolved.
"They [Gubevu] wanted the company to surrender more shares without any payment from them.
"Gubevu didn't invest any money when the deal was launched and did not pay a cent for shares transferred to them."