He is to head BEE company Amabubesi Investments, writes Paul Stober

Bulelani Ngcuka, the former National Director of Public Prosecutions, has taken up the post of chairman of Amabubesi Investments, a newly formed black economic empowerment company.

Amabubesi’s CEO is Sango Ntsaluba, a chartered accountant who serves on the board of a number of state bodies, including the National Electricity Regulator and the South African Special Risks Insurance Association.

Another member is Thabiso Tlelai, chairman and CEO of the Don Group, who serves on the ministerial committee responsible for developing BEE guidelines for the tourism industry. He also chairs the Tourism Business Council of South Africa.

Old Mutual deputy managing director Peter Moyo also has a stake in Amabubesi.

For now, Ngcuka is being coy about who is backing Amabubesi. The company profile says it is looking at investments in the financial, industrial, services, automotive, transport and healthcare fields.

“We have given ourselves 18 months to become a major player in the economy. We might be able to make some announcements in the next three weeks. I’m courting, but it would not be appropriate to say anything now in case we are jilted,” he said.

Last week the Sunday Times reported that Amabubesi was thought to be in the running for an empowerment stake in Old Mutual.

In an interview, Moyo explained that because of his position at Old Mutual, he could not be involved in an alternative shareholding structure for the financial services giant.

“Amabubesi could not go into a shareholding with Old Mutual. On the other hand, Old Mutual might go into other deals with Amabubesi,” he said.

Ngcuka is determinedly unforthcoming about the persistent rumours of a link-up with Old Mutual. “I’ll be seen in lots of offices, we’re speaking to many people,” he says.

Explaining his new role as a businessman, Ngcuka bristles with the same energy he had as National Director of Public Prosecutions: “It’s a steep learning curve, but new challenges energise me,” he explains.

“I have to learn a new language: of ‘embedded value’ and so forth. I am used to ‘burden of proof’ and ‘prima facie’,” he says with a straight face.

As chairman of an investment entity, Ngcuka sees himself as being responsible for the strategic direction of the company and taking the lead in negotiating any deals in which the company may be involved. He describes himself as a “leader ­ but a team player”.

Ngcuka serves on the board of Transnet and is also a director at Smith Tabata Ramsay Webber Buchanan Boyes Attorneys.

Is he worried that he may become one of the empowerment elite, who serve on too many boards to add any real value to companies? “I am determined that that will not happen.”

Ngcuka says Amabubesi will be “hands-on” with any company in which it takes a stake or with which it launches a joint venture. The company’s profile speaks of “active participation in investments to manage risk and enhance value” to ensure “proper adherence to governance”. It is also entrepreneurial in nature.

The company identifies its competitive advantages as the business experience of its founders. It adds: “Most businesses interface with government at all levels, either for business or to influence strategic thinking. Our association with decision-makers at the highest level enables us to influence strategic decisions in our country.”

Ngcuka seems entirely comfortable in his new role of businessman and deal-maker ­ and for now his prospects seem better than that other well-known financier, Schabir Shaik, whom he charged before leaving his post. “I only watch the trial as an observer,” Ngcuka says.

HANDS-ON: Bulelani Ngcuka says he is determined to add value

With acknowledgements to Paul Stober and the Sunday Times.