Sekunjalo Group criticizes Andre Kreil of SACTWU for misleading regarding legal dispute

The CEO of Sekunjalo Group, Lucien Jacobs, sharply criticized Andre Kreil, the Secretary-General of the Southern African Clothing and Textile Workers' Union (SACTWU). Jacobs called Kreil's recent public statements concerning the ongoing legal proceedings 'misleading and irresponsible.'

Responding to Kreil's comments regarding the Independent Media Consortium (IMC) and related parties, Jacobs accused the union leader of distorting the picture for SACTWU members while ignoring significant financial inflows the union has received over the past years.

Distortion of Facts and Financial Gain

According to Jacobs, Kreil has not presented the full factual picture nor disclosed the financial benefits that flowed directly into the union through his connections with the group. Jacobs stated: 'Mr. Kreil continues to present a distorted version of events and fails to inform SACTWU members about the complete factual basis and the financial gains that have entered the union over many years.'

He emphasized that SACTWU has already benefited substantially through shares, dividends, and other operations linked to the broader Sekunjalo ecosystem, valued at approximately 1.7 billion rand. Furthermore, Jacobs added that Sekunjalo will continue to use all appropriate legal channels to recover debts from the group, including funds related to the World of Work (WOW) publication project.

Directing Claims to PIC, Not Sekunjalo

Commenting on claims related to the IMC transaction, Jacobs noted that SACTWU is pursuing the wrong party and should address the organization that actually received the funds. He advised: 'If SACTWU believes it has a claim regarding the IMC transaction, it should seek reimbursement from the party to whom the funds were transferred, namely the Public Investment Corporation (PIC), and seek recovery from the relevant participants in that deal.'

Jacobs also raised serious questions regarding the actions of various executives, consultants, and parties associated with the union who participated in these transactions. He stated that 'the real beneficiaries of certain agreements are not disclosed to SACTWU members, and those responsible for decisions made to the detriment of union members must be held accountable.'

Separate Legal Entities and Litigation Risk

Jacobs reiterated that IMC is a separate legal entity from Sekunjalo Group, warning that attempts to conflate these two concepts are legally and factually incorrect. He added that 'the ongoing litigation strategy pursued by SACTWU will only expose the union to additional legal costs and potential counterclaims.'

Readiness for Court

Sekunjalo Group declared its full readiness to defend its position in court and welcomed the opportunity for a thorough examination of all relevant facts, transactions, and relationships within proper judicial procedures. Jacobs concluded: 'We are prepared to fight these allegations through all available legal channels so that the truth can be fully revealed and presented to the public and SACTWU members.'

iol.co.zaAugust 4, 18:21

Sekunjalo rejects SACTWU case as irrelevant and misuse of union funds

The head of the Sekunjalo group, Lucien Jacobs, stated that the group has reaffirmed its position regarding the ongoing legal dispute with SACTWU, questioning the use of union funds in a case that, according to Sekunjalo, does not directly concern it.

The Sekunjalo group noted the Constitutional Court's decision to deny an appeal on the current legal matter involving the South African Textile and Garment Workers Union (SACTWU). Supporting its long-standing position, Sekunjalo confirmed respect for the judicial bodies. However, the Group clarified that it was only mentioned as an interested party in the application to the highest court. Consequently, Sekunjalo announced its intention to formally apply to the Constitutional Court requesting an adjustment to the costs of legal services, emphasizing that the Group itself is not seeking any benefits in this matter.

Background of the Dispute

The legal dispute initially arose from litigation between SACTWU and Independent Media Consortium (IMC), formerly known as Sekunjalo Independent Media (SIM). SIM functioned as a Special Purpose Vehicle (SPV) created solely to acquire Independent Media from its former Irish owners. The case began in the High Court of the Western Cape, where Judge O’Sullivan initially ruled in favor of IMC/SIM. Subsequently, SACTWU appealed to the Supreme Court of Appeal (SCA), which overturned the High Court's ruling. This decision prompted IMC/SIM to seek legal protection in the Constitutional Court.

Misuse of Union Funds

Sekunjalo reiterated that this legal dispute is fundamentally not about the Sekunjalo Group itself, but concerns IMC/SIM—an organization without material assets. Because of this, Sekunjalo characterized SACTWU's further legal actions as convoluted and a misuse of union funds. The Group pointed out that SACTWU will gain no benefit from this process, noting that SACTWU's loan to IMC/SIM was paid directly to the Public Investment Corporation (PIC), not the Sekunjalo Group. Furthermore, Sekunjalo emphasized that historically SACTWU benefited from amounts ranging from 1.7 to 2.2 billion rand from the Sekunjalo Group. These benefits were obtained through shares in both private and state companies, as well as through other joint ventures. Among these is the publication World of Work, against which Sekunjalo is currently pursuing active litigation against SACTWU to recover outstanding funds. Given that a significant amount has already been paid to SACTWU, Sekunjalo questioned whether the union's current legal actions represent a reasonable use of its members' resources.

Impact on SIM and Independent Media

Sekunjalo indicated that alongside SACTWU and PIC, it is also a creditor of IMC/SIM, being the largest creditor of both IMC/SIM and Independent Media. In light of recent developments, Sekunjalo stated that it is considering all available options, including placing IMC/SIM and its subsidiaries into liquidation. For many years, Sekunjalo invested billions of rand in Independent Media to maintain operational activities in the interests of both SACTWU and PIC. Nevertheless, the Group confirmed that it ceased funding Independent Media as of July 31, 2026. With current investments exceeding 5 billion rand in Independent Media, Sekunjalo insists that no structure has the right to dictate its investment decisions. Going forward, the Group plans to direct funds towards media investments for its own account, rather than supporting unscrupulous shareholders.

Future Media Focus

Sekunjalo affirmed its commitment to developing its media portfolio alongside other investors, mentioning existing projects such as National Media Group, IOL, and other media interests. The Group stressed that it bears no further obligations to Independent Media or any other shareholder, confirming that its primary priority remains journalism and employment. Sekunjalo added that it will not consider issues related to Independent Media or other enterprises within its stable structure. Sekunjalo concluded the statement by affirming its determination to generate value for its shareholders and investors, a mission it intends to actively pursue.