Africa-Press – South-Africa. THE Reddy Family Trust announced on Friday that a subsidiary of the Trust, which held shareholding in EP Inland, had now exited from its investment with the company.
EP Inland is the name of the company formerly known as Edison Power Gauteng. Following the decision to sell and exit from the company, the company’s name has changed, delinking and removing all references or association to the Edison brand.
The Trust said in a statement that the exit from the company entailed the sale and disposal of the entire shareholding held by the Trust. The company was valued at more than R350 million two years ago.
The Trust said when the sale decision was taken, the business had significant claims against some of its clients and, if settled, could see the business flourish again under new ownership and management.
“Contrary to the previous media reports, we would like to emphasise that the Trustee, Mr Vivian Reddy, was never involved in the company’s operations, except being a shareholder through the family trust. He had resigned from the board several years ago,” reads the statement.
Last year the company discovered massive fraud of more than R200 million illegally siphoned by the company’s former executives.
Speaking on the exit, Reddy said: “Taking this decision to exit from the company is sad, but necessary. It took years to build the company into a powerful, successful brand that completed landmark projects across Gauteng.
“But the large-scale fraud we’ve suffered at the hands of our trusted former executives took its toll, especially on the reputation of the other companies we own. As it stands now, it is over 18 months since we laid several fraud charges against the perpetrators, but still, the perpetrators have not been brought to book.”
After the discovery, forensic investigation, and the reporting of the fraud, the company instituted claims against the perpetrators. These include the sequestration of two companies involved in the fraud. The claims will see a potential recovery of significant funds via the disposal of assets purchased with company funds.
According to the Trust, the assets bought by former executives with the proceeds of the fraud against the company included two planes, two helicopters, and a Mercedes-Maybach S600 luxury saloon. Fixed assets purchased by the former executives are also being pursued.
“The company provided jobs to many people and business to other suppliers relying on it. I would like those who defrauded the company to face justice as soon as possible,” said Reddy.
The Trust said: “While the company we sold and Edison Power (Pty) Ltd, are two completely separate and different legalities entities with no cross-shareholding or directorship, some media conflated their reporting around the companies. And that was beginning to encroach on the Edison Power Group brand.
“Edison Power Group remains a strong, reputable company it has been since it was built 40 years ago. It will continue to serve its clients with trust, integrity and dependability.”
The Trust said it hoped that the cases against those who defrauded Edison Power Gauteng would be brought to court soon so that the matter is brought to its necessary conclusion.
BUSINESS REPORT ONLINE
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