By Sydney Mhlarhi, director of Tamela, advisors to MTN Zakhele.
A communications campaign was launched in advance of the unwind of MN Zakhele requesting that MTN Zakhele shareholders update and verify their banking details, which the majority of shareholders did.
Most of MTN Zakhele shareholders were successfully paid on or about 13 December 2016, as planned and communicated in the MTN Zakhele Circular.
To date, 84% of the total amount due to be paid out to MTN Zakhele ordinary shareholders who elected to receive cash for their shares during the MTN Zakhele unwinding process in 2016 has been successfully paid. Prior to making the payment to shareholders, a bank account verification process was undertaken and only those shareholders whose bank accounts failed verification (about 24 000 shareholders) were not paid. Payments will continue to be made as and when the necessary change of details forms are processed and the bulk of these payments will be made before the end of February 2017. All shareholders who did not receive their payments on December 13 are being paid with interest.
The necessary decision to verify banking details was made entirely for the protection of shareholders who may have closed or changed their bank accounts during the 6 year life of the scheme. In certain cases, bank account numbers of previously closed accounts may have been assigned to other banking clients.
Shareholders whose accounts failed verification were required to provide FICA documents to update their bank details, including providing a stamped bank letter or a certified bank statement less than three months old, in order to be sure that payments are processed into valid and verified bank accounts belonging to shareholders and to avoid any instance of fraud or incorrect payments.
Following the initial pay-out, additional communication was sent to shareholders whose bank accounts had failed the initial verification to update and verify their details so they could receive the funds due to them. A high number of change of details forms were subsequently received, which the MTN Zakhele service providers are working hard to verify and update records in order to ensure that payments are processed as quickly as possible. The service providers have employed additional resources to process these change of details forms timeously and to ensure that the remaining MTN Zakhele shareholders who elected to receive cash are paid as soon as possible.
We are aware of the frustration of MTN Zakhele shareholders who need to verify their accounts and receive the cash amount due to them and we apologise for any inconvenience experienced during the process. We can assure you that we are doing our utmost to ensure that this process goes smoothly and that shareholders are paid quickly. We call on all shareholders who still need to provide the necessary documentation to do so as soon as possible.