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EXECUTIVE: The offices of the Midway Two group in Randburg. Former cleaner Maria Jeme, listed as a director and shareholder there, is fighting an attempted buyout deal. Picture: Sithembile Mtolo

DIANNE HAWKER

On paper, former cleaner Maria Jeme owned millions of rand worth of shares in three subsidiaries of the Midway Two group and was a director for several years.

Yet she has no car, lives in a small two-bedroomed flat and is struggling after being dismissed for refusing to sign a R350 000 “end of shares agreement”.

Jeme’s shareholding at Midway Two subsidiaries:

n 42 percent of Midway Two Contractors

n 26 percent of Executive Outsourcing

n 40 percent of Democratic Industrial Services.

Several sources say she had no decision-making power at Midway and its subsidiaries.

They say she was not paid dividends and received a secretary’s salary of about R12 000 – despite financial records reporting R11.6 million in dividends paid to shareholders from 2007 to the 2010/2011 financial year.

Company owner Daan Scholtz has denied allegations that there was any fronting. He claimed the information collected by this newspaper is false, but would not elaborate, saying the matter was being dealt with by lawyers.

Scholtz and his son, Jason, owned the rest of the shares through the DJJ Scholtz Trust. Jason told The Sunday Independent that he was no longer with any of the Midway companies, but occasionally helped out.

Jeme worked as a cleaner for Scholtz before being sent on a secretarial course and later a security course. Sources say she lived in a back room at his Randburg home for several years, even after her promotion to secretary.

Companies and Intellectual Property Commission (CIPC) documents list Jeme as a former director at the three Midway companies. Strangely, the resignation and appointment dates are the same.

At Executive Outsourcing, the CIPC documents list her profession as HR – but sources say Jeme worked on tenders, compiling documents for bids.

It appears that Scholtz tried to buy Jeme out with the R350 000 settlement in March before setting up a new black economic empowerment shareholding deal signed in June by Michael Zuma, Prince Brayce Mthimkhulu and Richard Mdakane. That deal has also been called into question.

An employee who contacted The Sunday Independent after questions were sent to Scholtz said he was “surprised” to hear that Jeme was a director. “She was basically involved with tenders and taking care of the security side. I didn’t receive any instructions from her. None of her e-mails ever said she was a director,” said the employee, who identified himself as Danny Naicker.

The Sunday Independent has seen documents listing Jeme as part of the “executive” of the group and its subsidiaries. Company financial statements seen by this newspaper also list her as a director.

Being a black woman, Jeme would have scored the Midway companies maximum BEE points for tenders with government – the main source of income for the Midway Two group. Most of its business was with police, supplying labour for the construction of police stations, and security.

It is understood Jeme was given a loan to pay for the shares, but her low salary and no dividends meant she couldn’t repay it. Jeme and her lawyer would not be drawn on details of talks with Midway Two, apart from saying there is a dispute.