By EDN Reporter
ESWATINI’S biggest employer, Inyatsi Group Holdings, is taking legal action against the Federation of Eswatini Business Community (FESBC) following a letter written to the Competition Commission.
Inyatsi Group Holdings spokesperson Ncobile Dlamini slammed the conduct of the FESBC and the malicious contents of the letter. “We have noted the letter and we are taking legal action against the Federation of Eswatini Business Community (FESBC),” she said.
The FESBC wrote a letter dated November 30, 2023, to the Competition Commission, claiming it had been instructed by its members to request the Competition Commission to conduct an investigation on the Inyatsi Group on its dominance and acquisition of various companies to the disadvantage of the local business community.
The organisation further made unsubstantiated claims against Inyatsi. It complained that Inyatsi Group was dominating in every sector it operated in. Reacting to the letter, Dlamini said the contents and allegations were baseless. “The contents of the letter are untrue and libellous. We challenge the organisation to produce the evidence they claim to have in a court of law,” she said.
The group appointed S. V. Mdladla & Associates to handle the matter. The law firm wrote a letter to the Federation of Eswatini Business Community demanding an apology and retraction. The lawyers said the letter by FESBC was defamatory and was perpetuated by malicious intent. “Our client is fortified in its belief by the composition of the Board which consists of individuals who clearly have an agenda against Inyatsi Holdings.
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The composition of the Board compounds the defamation to the extent that it is not only civil, but it is criminal as well, Therefore, there exists the element of crimen injuria,” the lawyers said. FESBC was further questioned on how and why the complaints in the letter were not discussed with Inyatsi Group Holdings which is a member. The organisation was given three days to retract the letter and apologise.
“Our client instructs us that it is also a member of your Organization and as such, its sense of disquiet was raised to enormous extents by the contents of the letter in that it has never been engaged to deal with all the defamatory issues raised in your letter.
Given the proximity of the client to the Organisation, our client’s instructions are at this stage to demand as we hereby do, that there be a retraction of the contents of the letter by the Organisation. The said retraction should be accompanied by an apology and such retraction and apology should be published in all the media houses as well as social media,” the lawyers said.
Dlamini added that the group does not have issues with people raising concerns but how FESBC behaved and handled the matter. “Inyatsi Group Holdings objecting or against anyone calling for an investigation but we are however taken aback by the defamatory and malicious contents of the letter,” she said. The group’s expansion is based on reinvesting in the local economy.
The company has opted to grow the local economy by keeping its profits in the country instead of going outside. It has done so by investing in different businesses. When companies go the route of diversification, they subject themselves to severe scrutiny from regulatory bodies and need to ensure the move and process do not impede or create an unfair environment for other companies.
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Despite the unsubstantiated claims by the FESBC, business expansion and growth go hand-in-hand with diversification, something that the group has managed to do well. Diversification is the process that a business uses to enlarge. It also refers to a method of allocation of portfolio resources to various investments. Diversification is accomplished through expanding into new products or new markets.
In marketing, diversification is a strategy that a firm uses to seek growth by adding products and markets that entail products unrelated to the existing ones. Companies throughout the world have gone the route of diversification. This was also the case with Inyatsi Group Holdings when it conducted its business. Dlamini said the transactions that the organisation has entered into have been overseen by the different organs responsible for ensuring compliance.
“In every transaction that we have conducted, we have followed the law. The transactions have also been taken through the Competition Commission,” she said. Inyatsi Group Holdings currently employs close to 6 000 people throughout its subsidiaries both locally and on the African continent.
The group’s wage bill sits at over E40 million a month and has also created job opportunities for locals in the countries it operates in while utilising local subcontractors and suppliers, ensuring that the projects they spearhead have a lasting economic impact.
. . . INYATSI GROUP HOLDINGS JOINS GLOBAL COMPANIES IN DIVERSIFYING PORTFOLIOS
OTHER companies globally have taken also the same direction as Inyatsi Group Holdings, diversifying their portfolios in the process.
Organisations that have taken this route are:
Remgro: Remgro has a few operating subsidiaries of which the material companies are RCL Foods Limited (listed), Siqalo Foods Proprietary Limited (unlisted), Wispeco Holdings Proprietary Limited (unlisted) and Capevin Holdings Proprietary Limited (unlisted). Remgro Limited (Remgro) is a South African investment holding company. The Company’s interests consist mainly of investments in banking and financial services, printing and packaging, glass products, medical services, mining, petroleum products, food, wine and spirits, media, technology and various other trade mark products.
Johnson & Johnson: Many think of Johnson & Johnson as the maker of Band-Aids, baby shampoo, and other home health products, but this company does so much more. In addition to producing a wide range of prescription and over-the-counter drugs, it has a robust medical device segment featuring instruments used in major surgeries. Johnson & Johnson also has a sports-performance research institute for athletes.
3M: Most people don’t even remember what “3M” stands for. Founded in 1902 and formerly known as the Minnesota Mining and Manufacturing Company, it’s now a huge conglomerate that makes everything from Post-It notes to semiconductors. The company has more than 60,000 products for both businesses and consumers.
Berkshire Hathaway: Founded by Warren Buffett, Berkshire Hathaway’s holdings include big investments in industries ranging from technology (Apple), banking (Wells Fargo, Bank of America), food and beverage (Coca-Cola), insurance (GEICO), and even clothing (Fruit of the Loom).
Alphabet: We think of Alphabet as simply the holding company for the search engine Google. But this company has broadened its revenue base by delving into all things tech and some even not-so-tech. In addition to generating revenue from Internet advertising, it operates the Android operating system and has manufactured phones of its own. Alphabet has also made money from life sciences and biotechnology was a huge early investor in ridesharing company Uber and has its own driverless car initiative.
The Walt Disney Co.: This company is more than just Mickey Mouse. Disney has theme parks and resorts around the world. It has movies, including all of the Marvel superheroes and Star Wars franchises. It owns ABC and the ESPN networks, it also owns Hulu and recently launched a direct-to-consumer video service called Disney+. In 2019, the company acquired the film and TV assets of 21st Century Fox.
Danaher: The company has four divisions, all broadly focused on manufacturing: environmental and applied solutions, life sciences, diagnostics, and dental. The company makes dental implants and graphic arts software. It makes microscopes and water treatment equipment.
Honeywell: This company refers to itself as a “software-industrial” conglomerate, but that hardly gives a good sense of the breadth of its businesses. Honeywell employs more than 103,000 people building everything from aircraft wheels to packaging for pharmaceuticals. The company was founded in 1885 as the maker of the first crude thermostat, and through a series of mergers, evolved to become one of the world’s largest aerospace firms.
Most of Honeywell’s revenue comes from four segments: Aerospace, home, and building technologies, performance, and materials technology, and safety and productivity solutions.
