Leaked emails circulated among shareholders of Metrofibre provide insight into a dispute involving
funding arrangements between Levoca 805 and the Public Investment Corporation (PIC). In the correspondence, Rali Mampeule sets out a rebuttal of allegations that transactional costs and working capital requests were irregular or constituted a default.
Johannesburg, South Africa – In light of the recent media reports published by the Sunday Times reportedly suggesting that Levoca 805 requesting a further R6.6-million Transactional Cost and working capital was not in standard practice has been disputed and explained in a leaked email to the shareholders of Metrofibre.
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https://youtu.be/rpWDQB4dDQI?si=PXWjwVqAmWARySi0
Rali Mampeule, director of Levoca 805, has in a leaked document sent to the shareholders of Metrofibre issued a detailed clarification. This response reportedly aims to clear misconceptions and reinforce the integrity of the transactions in question. In a leaked email addressed to the shareholders of Metrofibre, Rali Mampeule director of Levoca 805 clarified the Sunday Times and various media reports on PIC/Levoca and Metrofibre unfounded media speculations.
He stated that the PIC suspended CIO Kabelo Rikhotso and Lindiwe Dlamini Masina, Head of Legal Investments, Allegations of Bullying PIC Corruption Whistleblower Over Levoca’s 805 Transactional Funding Application Costs Continues.
He clarified to the shareholders of Metrofibre about the Sunday Times Transactional Cost Funding application article.
He stated in an email that:
“Digital Infrastructure Consortium (Pty) Ltd (“DIC”), a special purpose vehicle that holds approximately 20% shareholding in Metro Fibre Networx (“MFN”), is also the owner of Levoca 804 and Levoca 805 (Pty) Ltd, which form a group of companies (“Group”). It is important to note that the Group was created as an SPV.
The PIC and Levoca 805, concluded in 2024 the closure and payment of approximately R700 million in funding, provided based on the issuance of preference shares for an equal amount in Levoca 805 (Pty) Ltd (“Levoca”), which is 100% owned by DIC. The purpose of these funds was to settle all monies previously lent by Old Mutual Hybrid Equities (“OMHE”) and Africa Infrastructure Investment Managers (“AIIM”) to the DIC group of companies through a refinance scheme. Consequently, this transaction resulted in the full R700 million being settled to OMHE and AIIM (Old Mutual).
It is imperative to highlight that the amount approved and settled by the PIC was wholly related to the financing previously obtained from OMHE and AIIM (Old Mutual), and no additional amounts were paid to the shareholders of DIC or its directors, as alleged by the Sunday Times.
Furthermore, the settlement of the R700 million to OMHE and AIIM (Old Mutual) left no residual cash in the bank accounts of DIC or its group of companies, as this was paid directly by the PIC to AIIM and OMHE (Old Mutual).”
“Our companies incurred several transactional costs during the funding transaction with the PIC. These were purely transactional costs due and payable as a result of our refinancing funding deal from Old Mutual Hybrids to PIC taking over the preferential funding of Levoca 805 from Old Mutual Hybrids.
The PIC and I, as a shareholder of Levoca 805 and DIC, discussed and agreed that I had reached my maximum personal lending capacity to extend any further funds to the transaction, as I had already contributed a deposit of R60.5 Million Rand of my own cash. This counters the allegations made by the Sunday Times that ‘I did not have my own skin in the game.’ In fact, I contributed R60.5 Million Rand as a cash deposit to the deal as a loan account for the company.
As highlighted in the summary illustrated below and in my funding application to the PIC, the total amount due as a result of PIC/Old Mutual Hybrids/Levoca transaction costs was R4,316,834.56.”
Transactional Costs Breakdown
CMS: R2,000,000.00 – Legal Fees
Apeiron Capital: R738,000.00 – Company Secretarial Work
CDH: R355,175.21 – Legal Fees
Bowmans: R129,673.30
TGR Attorneys: R393,770.55 – Legal Fees
BDO: R120,750.00 – Independent Valuation
Nyonki Auditors: R62,847.50 – Auditors
De Klerk Vermaak: R516,618.00 – Legal Fees
Total: R4,316,834.56
It is important to note that the above expenses was not at default as alleged by the Sunday Times as all parties were aware of our funding application for all the transactional cost with the PIC and that to minimise the risk all of the above invoices were not made out to Levoca 805 but DIC and or Levoca 804, so it is NOT correct that Levoca 805 is in default with any amount.
The Matter of Fact is that my refusal to pay the R3 Million Bribe to Moshikara was met with the PIC attempting to use a disputed trigger event relating to a random R1 170.00 postages and stamps fee that even Bowmans itself had forgotten about, in order to cede away and transfer Levoca’s shares valued at R1.30 billion for a punitive alleged invoice of R1170.
Further working capital was required, these funds were intended to meet the PIC’s own requirements for Annual Financial Statements, administrative matters, company secretarial work, and funders’ support needed annually as per our loan agreement with the PIC.
Breakdown of Working Capital for Three Years Before Dividends Payout!
Year 1: R60,000 (per month)
Annual Total Amount: R720,000.00
Year 2: R770,400.00 (escalated at 7% annually)
Year 3: R824,328.00 (escalated at 7% annually)
Total Working Capital: R2,314,728.00
The R60,000 per month was allocated to pay for bookkeepers, auditors, company secretarial work, legal fees, bank charges, etc. This is standard practice, and we received similar funding approval six (6) years ago from our previous funders, Old Mutual Hybrids, for the same investment in Metrofibre to cover administrative expenses.
The total amount due as a result of the agreed and submitted transaction costs with the PIC was R4,316,834.56, and the total amount modeled for working capital across three years is R2,314,728. This results in a total funding requirement of R6,631,562.56.
It is unfortunate that the journalist, along with his funded article by the alleged corrupt individuals at the PIC, seeks to undermine anti-corruption efforts in our country by attempting to discredit our business’s financial capacity.
What the publication fails to mention is that the R6,631,562.56 in transactional fees and working capital funding was rejected after I received R700 million in funding. It was rejected primarily because I refused to pay the R3 million bribe requested by Thabiso Moshikara.
The reality is that the PIC has now lost an annual investment profit of R100 million in interest earnings from January 2024 to January 2025 and faces further losses to the Government Employees Pension Fund.
This is all due to a disputed invoice of R1,175 for stamp duties related to Bowmans, which the PIC themselves stated was under R3,000 during a parliamentary committee hearing.
The misleading allegations by Sunday Times against Levoca 805 and its funding application are unfounded and serve to distract from critical work being done to enhance South Africa’s digital infrastructure and economic development.
Rali Mampeule is not just a business director but also a prominent philanthropist with significant contributions to housing, education, and infrastructure in South Africa. Through the Mampeule Foundation, the South African Housing and Infrastructure Fund (SAHIF), and the Global Surgery Foundation (GSF), he continues to support whistleblower movements and anti-corruption efforts.