Ernst & Young enters into MOU with Sakhumnotho Group Ernst & Young

Posted: Wed, 30 Aug 2006 09:56 | C Moneyweb Holdings Limited

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Audit and business advisory firm, Ernst & Young, has announced that it has signed a Memorandum of Understanding (MOU) with Sakhumnotho Group Holdings, a diversified black economic empowered company with interests in mining, industrial systems, financial and investment services and property. According to Kunyalala Maphisa, Business Development manager at Ernst & Young, this agreement is a component of the company's Future Power Company (FPC) initiative, through which Ernst & Young identifies companies with potential to be market leaders and forges mutually beneficial, long term relationships with the aim of assisting the companies reach their potential.

"Through the FPC initiative, Ernst & Young is identifying potential and assisting in the growth of promising South African companies. Sakhumnotho is the first such company and it is a company which has the vision, executive ability and strategic direction to become a leading company not only in South Africa but across the continent," says Maphisa. Founded in late 2000 by a group of four black professionals with experience and expertise in financial services, legal services, merchant and investment banking, Sakhumnotho Group initially focused on corporate advisory services and consulting, focusing mainly on structuring black empowerment transactions, valuations, due diligence, capital raising and documentation.

It has since expanded its business to focus on financial services, mining, properties and strategic investments. As an organisation which is deeply committed to the principles of broad-based black economic empowerment, it has placed 10% of its equity in a trust to benefit schools, children's homes and churches in previously disadvantaged communities. While each beneficiary is represented by a principal or reverent as trustee, Sakhumnotho is also represented to ensure that funds reach beneficiaries on the ground. Sakhumnotho Group chairman Sipho Mseleku says the company is proud to be the first partner of Ernst & Young's FPC programme. "Being the first on the programme is an acknowledgement of what we have created. This is a relationship that adds significant credibility to our company since Ernst & Young is a recognised global leader, while access to a wide variety of professional services necessary to assist in company growth.

The association also ensures that we continue to operate in line with codes of good practice and corporate governance," he notes. Wynand Goosen, Sakhumnotho CEO adds that the company's mission is to identify investment opportunities with both strong short-term revenue generation and long term capital appreciation. "The concept of skills transfer and capacity building is at the core of our business philosophy, as is the advancement of previously disadvantaged individuals and the support of black business. This is done through targeted community involvement and procurement initiatives," he explains. Goosen adds that with an active business and political network across Africa, the Sakhumnotho Group participates in varied investments across the continent. "With our extensive portfolio, we believe the MOU with a company as distinguished as Ernst & Young gives us access to professional services and strategic advice of the highest calibre. The capacity that we are able to access through this agreement equips the company to take further steps to continue positive growth," he says.

Says Maphisa: "Through the MOU, Ernst & Young will assist Sakhumnotho by providing core services from our portfolio which are suited to the client and assist it in taking its vision forward and realising value for shareholders and its BEE beneficiaries. We believe this is a company which is a future market leader - not just as a BEE company, but in its own right."

Wynand Goosen
CEO, Sakhumnotho Group Holdings (Pty) Ltd