Sisulu, Morobe invest in Resolve

Published May 20, 2004


Johannesburg - Massive capacity shortfalls in the public sector - and the government's promise to improve delivery - have made human resource development a very lucrative game to be in.

So when prominent black businessmen Max Sisulu and Murphy Morobe were approached to take up shares in the Resolve Group, a medium-sized firm specialising in large-scale public sector restructuring initiatives, it was a natural fit for them.

Morobe, the outgoing chief executive and chairman of the financial and fiscal commission, which regulates intergovernmental fiscal relations in South Africa, said he had taken a 6 percent stake in the group because he was "convinced of its future expansion into all sectors".

Morobe has just been appointed deputy director-general in charge of communications in the office of the presidency. He sits on the boards of Old Mutual and Ernst & Young.

He would not say how much he had paid for his shares - the company has said it would be paid a certain percentage in cash upfront and the balance in the near future - but he said he was happy with his investment.

"There are openings coming up every time and Resolve's competencies and mission will fit into these," he said. "The company has my own interest in human relations development. There are potentials in the ... region and in Africa as a whole.

"Six percent might not seem much. But I am investing in the future. I can see the growth of the enterprise. In the next 10 years, I want to see Resolve being a pre-eminent group."

Sisulu, who also took 6 percent, is the group general manager of energy giant Sasol, a non-executive director of Harmony Gold and non-executive chairman of Ukhamba Holdings, an investment firm.

He is also the former deputy chief executive of Denel, the state-owned arms manufacturer.

Both Sisulu and Morobe will take up positions on the Resolve board. Their stakes, combined with Kagiso Enterprises' 30 percent shareholding acquired last year and that of the company's black management, raise Resolve's black ownership to over 50 percent.

Peter Harris, the managing director of Resolve, refused to disclose how much 12 percent was worth, as the company was privately held. But he did say he expected its turnover to be in the region of R50 million this year.

Related Topics: