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Official Response – Sunday Times Article: “Yekani CEO blames Thato Abrahams for IT firm’s R68m debt”

Official Response 26 January 2020 For immediate release Official Response – Sunday Times Article: “Yekani CEO blames Thato Abrahams for IT firm’s R68m debt” Yekani Manufacturing (Pty) Ltd (“Yekani”) has noted today’s Sunday Times article with headline: “Yekani CEO blames Thato Abrahams for IT firm’s R68m debt”. The company would like to categorically refute this statement and distance itself from the claims made by the Sunday Times. Yekani would like to re-iterate that it does not blame Minister Stella Ndabeni-Abrahams and her husband – or anyone else both in the public and the private sector – for the financial issues…

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Official Response

26 January 2020

For immediate release

Official Response – Sunday Times Article: “Yekani CEO blames Thato Abrahams for IT firm’s R68m debt”


Yekani Manufacturing (Pty) Ltd (“Yekani”) has noted today’s Sunday Times article with headline: “Yekani CEO blames Thato Abrahams for IT firm’s R68m debt”.

The company would like to categorically refute this statement and distance itself from the claims made by the Sunday Times. Yekani would like to re-iterate that it does not blame Minister Stella Ndabeni-Abrahams and her husband – or anyone else both in the public and the private sector – for the financial issues that the company is experiencing currently.

Yekani and its Group CEO in particular – take full responsibility for its current state and its priority remains – to do everything in its power to protect and save the jobs of its employees. The Group CEO of Yekani would like to thank the National Department of Trade and Industry (DTI), the Eastern Cape Office of the Premier, Eastern Cape Department of Economic Development, the East London Industrial Development Zone (IDZ) for all their support and willingness to assist in saving the jobs of our employees.

Yekani and Standard Bank’s last court appearance was on 14 January 2020 – where a judgement determining the future of Yekani was going to be handed down. The outcome of this court appearance was a postponement until 18 February 2020 – this therefore means that this matter is now sub-judice.

In an effort to respect the court processes, Yekani is currently unable to provide further details or comment on any rumours around this matter as it runs the risk of prejudicing or interfering with the pending court proceedings and its outcome.

Dr Siphiwe Cele is the Group CEO of Yekani Manufacturing. 

Ends.

For additional information or media queries, please contact:­­­­­­­­­­­­­­­­­­­­­­­­­­  
Issued on behalf of Yekani Manufacturing by:

Miranda Lusiba – MD: Strangé Consulting

Mobile: +27 (0) 78 675 1297; Email: miranda@strangeconsulting.co.za/ora4117@gmail.com

 

CEO confident Yekani can be resuscitated

Daily Dispatch – Cele says he is in talks with investors, including one from the US Yekani Manufacturing, the R1bn East London hi-tech company being put into liquidation by Standard Bank, might appear to be down but, CEO Simphiwe Cele insists, it’s “definitely not out”. The company is fighting to keep its 500 employees in their jobs despite its failure to open its doors this year. Cele told the Dispatch the liquidation decision was now set down for February 18,…

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Daily Dispatch – Cele says he is in talks with investors, including one from the US

Yekani Manufacturing, the R1bn East London hi-tech company being put into liquidation by Standard Bank, might appear to be down but, CEO Simphiwe Cele insists, it’s “definitely not out”.

The company is fighting to keep its 500 employees in their jobs despite its failure to open its doors this year. Cele told the Dispatch the liquidation decision was now set down for February 18, but he wanted the matter resolved well before then.

“I have already approached three investors, one based in the US. Hopefully they will be both investors and customers.” He said the media had mistakenly intimated that there was bad blood between the company and the Eastern Cape government, which was not accurate, and that the liquidation threat had nothing to do with the province. Our problems were twofold. Demand for the products saw us grow too fast, which put us in cash flow constraints. Coupled with that, we had only two major clients. The biggest, Commscope, supplied our decoders to MultiChoice. It was 90% of our business. The other was Landis & Gyr, an overseas group with an SA office. It supplied Eskom with our smart meters.” Things started to unravel when Commscope took what Cele described as a “business decision” to terminate the relationship. However, he said both companies were still open to negotiating future relationships.

He would not comment on the timing of the decision, nor would he say anything on the rumour that a senior government official was hoping to buy Yekani out of liquidation. “We have been working really hard, and there is light at the end of the tunnel. As I keep stressing, keeping Yekani going is my total focus.” Cele said he would do anything to save the jobs.

But disgruntled staff members, speaking anonymously to the Dispatch, doubt Cele’s words and have asked why it has taken so long to act, and then only in response to Standard Bank’s liquidation intent. Most staff members had not been paid since August and were left in the dark as to why, he said.

The accusation was denied by Yekani, who claimed that there had been meetings and e-mails communicating issues to staff. Additional complaints from staff were that they could not get any response to requests for documents, which Yekani denies. It said many of the documents made available in December went uncollected. Cele said he deeply regretted that no documents were currently available as it was now impossible to provide them because of the liquidation case. Cele said a survey, were it possible, of the 500 staff now sitting at home would reveal that the majority would not question his commitment to make the company work and keep people in work. But staff members questioned this as well.

Cele would not comment on rumours about his position at Yekani and his spending habits, other than saying he was aware of them. Cele admitted he had two Bentleys, but added the first was purchased when he worked for Nedbank, and the second before Yekani was established. He denied that Yekani owed Standard R200m. The real debt was well below this, he said, but declined to give a figure. Standard Bank has since put out a correction, stating the debt is R68m.

Holding Statement: Media Reports on the “Closure of Yekani Manufacturing Smart Factory in East London”

21 January 2020 For immediate release Holding Statement: Media Reports on the “Closure of Yekani Manufacturing Smart Factory in East London” Yekani Manufacturing (Pty) Ltd (“Yekani”) has noted all the media reports that have indicated that the Yekani Smart Factory located at the East London Industrial Development Zone (IDZ) – would be “closing its doors with potentially 500 skilled workers becoming unemployed”. Yekani and its Group CEO in particular – remain committed to doing everything in its power to protect…

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21 January 2020

For immediate release

Holding Statement: Media Reports on the “Closure of Yekani Manufacturing Smart Factory in East London”

Yekani Manufacturing (Pty) Ltd (“Yekani”) has noted all the media reports that have indicated that the Yekani Smart Factory located at the East London Industrial Development Zone (IDZ) – would be “closing its doors with potentially 500 skilled workers becoming unemployed”.

Yekani and its Group CEO in particular – remain committed to doing everything in its power to protect and save the jobs of its employees. It is also imperative to note that the Eastern Cape Provincial Government is not responsible for the financial issues that Yekani is experiencing currently.

The first article that was published by the Daily Dispatch on 14 January 2020 – coincided with Yekani and Standard Bank’s court appearance date – where a judgement determining the future of Yekani was going to be handed down.

The outcome of this court appearance was a postponement until 18 February 2020 – this therefore means that this matter is now sub-judice. Yekani is currently unable to provide further details or comment on any rumours around this matter as it runs the risk of prejudicing or interfering with the pending court proceedings and its outcome.

Dr Siphiwe Cele is the Group CEO of Yekani Manufacturing.

Ends.

 

For additional information or media queries, please contact:

Issued on behalf of Yekani Manufacturing by:

Miranda LusibaMD & PR Consultant: Strangé Consulting

Mobile: +27 (0) 78 675 1297

Email: miranda@strangeconsulting.co.za/ora4117@gmail.com

About: Yekani Manufacturing                                                                                   

Yekani Manufacturing (Pty) Ltd. (“Yekani”) – a 100% Black-owned electronics contract manufacturer and Information and Communication Technology (ICT) company – is an identifier of innovation opportunities and an enabler. Yekani Manufacturing and Yekani Technology are privately owned companies that form part of the Yekani Group – a holding company incorporated in 1998. These entities boast an executive management team with 30 years’ experience spanning multiple sectors.

The company is located at the East London Industrial Development Zone (IDZ) in its R1-billion-worth world-class Smart Factory – able to create new value to achieve advantage over our competitors. This technologically advanced facility is geared towards manufacturing innovative technology products for clients in the consumer, automotive, defence and aerospace industries. Yekani is about growth through commitment to its greatest strength that lies within – its biggest asset – its people

 

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