Sagarmatha, a Survé and Sekunjalo Group company, sues the Presidency and State Organs for $3 billion in damages and demands accountability. The damages claim is for the lost opportunity as a result of the actions of the JSE, SARB, National Treasury and the Presidency in stopping the listing of Sagarmatha on the International Stock Exchange, New York Stock Exchange, Hong Kong Stock Exchange and NASDAQ.
In an announcement made on the 25th of January 2024, Sagarmatha Technologies, linked to Dr. Iqbal Survé and the Sekunjalo Group, has initiated a monumental R50 billion lawsuit against key South African governmental and regulatory bodies, including President Cyril Ramaphosa and the JSE.
An excerpt from the companies press release reads as follows:
“South African business Sagarmatha Technologies (Sagarmatha), has become the second company in the Sekunjalo Group to claim for damages from various organs of state and regulatory bodies including the President of South Africa, Cyril Ramaphosa, for what it considers to be a deliberate withholding of permission to list on a foreign exchange”.
The statement goes on to explain how the Presidency and various organs of state as well as institutions such as the JSE and South African Reserve Bank (SARB) conspired to withhold Sagarmatha’s international listing, culminating in this staggering claim for damages.
Stifled Aspirations: The JSE Listing That Never Was
April 2018 was poised to mark Sagarmatha Technologies’ debut on the JSE Stock Exchange. For eight months Sagarmatha worked tirelessly with the JSE to ensure that all regulations and requirements were met to ensure their listing would be approved, however, the company contends that political machinations led the JSE to abruptly halt the listing process, citing reasons that Sagarmatha dismisses as frivolous. This was a major setback in Sagarmatha’s trajectory, leaving the company’s ambitions in limbo.
Valuation and Capital: A Story of Shattered Expectations
The JSE insisted on Sagarmatha acquiring 2 independent, international evaluations with which the company complied. Sagarmatha’s potential was positively recognized through these international valuations, pegging the company’s worth at an impressive R50 billion. Bolstered by this, Sagarmatha successfully rallied the requisite $400 million from global investors, aiming to solidify its position in the international market.
At this time, the South African Reserve Bank (SARB) opened primary listings offshore by allowing Prosus, a division of Koos Bekker’s Naspers, to list in Amsterdam. Sagarmatha would be the second South African company to follow suite.
The SARB and National Treasury: A Labyrinth of Bureaucracy
While Sagarmatha set its sights on prestigious international stock exchanges like those in New York, Hong Kong, or NASDAQ, the South African Reserve Bank (SARB) initially gave a nod of approval, confirming at the meeting that permission to list internationally will be granted within 2 months as all required criteria were met. Yet, this optimism was short-lived. A year later, SARB diverted the decision to the National Treasury, hinting at a higher level of decision-making at play, allegedly influenced by political figures including President Ramaphosa.
The National Treasury, instead of offering clarity, shrouded the process in ambiguity. No definitive response was given, with vague references to the ongoing PIC Mpati Commission serving as a smokescreen for inaction. This indecision and alleged political interference led to a protracted three-year delay, with SARB forcing Sagarmatha to eventually have to start their application over from scratch just 3 days before the listing, a move that resulted in the loss of both the opportunity for international investment and the trust of its global backers.
The Entities Behind the Curtains: Dismantling Dreams & Job Opportunities
The narrative of Sagarmatha’s thwarted listing unfolds as a saga of not just corporate aspirations but a chronic tale of alleged systemic obstruction, abuse and economic fallout. The JSE, SARB, National Treasury, and the office of the presidency stand accused of orchestrating the derailment of Sagarmatha’s ambitions for an international presence. This concerted effort, as asserted by Sagarmatha, transcended financial repercussions; it marred the company’s reputation and extinguished a beacon of hope for job creation in South Africa’s tech sector.
At a time when the nation was already grappling with alarming youth unemployment rates of 38.2%, Sagarmatha’s vision was not just about financial growth but about social impact. The company was set to generate at least 5,000 jobs, focusing on youth employment and skill enhancement in a sector ripe with potential. Yet, this vision of empowerment and progress was brought to a standstill, leaving aspirations unmet and potential contributions to the nation’s economy unrealized, all due to the actions and decisions attributed to the President and his associates.
The Legal Front: Sagarmatha’s Quest for Justice
Supported by a distinguished Advisory Board comprising billionaires, global entrepreneurs, and CEOs, Sagarmatha is not just fighting for compensation but for principle. The company’s legal strategy, invoking the Institution of Legal Proceedings Against Certain Organs of State Act, reflects a deeper commitment to holding state entities accountable, championing a business environment conducive to growth and success within South African borders. As the case unfolds, Sagarmatha Technologies stands resolute in its quest for justice, undeterred by the protracted battle.
The company, once on the cusp of becoming a pioneering multi-sided platform listed abroad, now seeks not just financial redress but a reassertion of the principles of fairness and transparency in the face of what it perceives as a coordinated assault on its potential and integrity. Further developments are awaited as Sagarmatha continues its relentless pursuit of justice and accountability.
