Press Statement from Mail & Guardian publisher Trevor Ncube, Harare, July 22 2014:

Here is my response to reports that have been carried in The Star and its sister publications in the Independent Group about Mail & Guardian Media Ltd (M&G) and Alpha Media Holdings (AMH) over the past few days (see here).

1.  A pattern is emerging that every time the Mail & Guardian contacts Dr Iqbal Surve, Executive Chairman of Independent News and Media, South Africa (INMSA), or his executives, for a comment on a story they are working on it is turned into an opportunity to attack me or my publications.

2.  I have avoided responding to these attacks because I strongly believe that the wider public does not benefit when publishers fight. This response is to provide context and to put the record straight.

3.  Last year when approached by the M&G's Centre for Investigative Journalism to explain how he had funded the acquisition of INMSA, Dr Surve's response was to allege that my businesses were funded by the US Central Intelligence Agency (CIA). He has never been able to provide the proof he claimed to have to support this allegation.

4. Last week while I was on leave, I understand the M&G approached Tony Howard, the Deputy Executive Chairman, and Takudzwah Hove, the CFO of INMSA with a set of questions on a story that they were working on. On Friday, the papers in the Independent stable ran stories about M&G and AMH. No effort was made to seek comment from me to verify the allegations.

5. Sometime last year Dr Surve called and, among other things, asked that I talk to the M&G Investigative Unit, and tell them not to work on stories relating to the acquisition of INMSA. I told him I couldn't do this as I don't tell our journalists what to write and what not to write. He seemed very surprised.

6.    M&G and AMH are independent entities with two common shareholders, namely myself and the Media Development Investment Fund (MDIF). The two companies(AMH and M&G) operate completely independent of each other and are self-sustainable. Moreover, each company has its own independent board of directors.

7. Like all companies in Zimbabwe, AMH is dealing with the challenges of an economy in free fall. We founded AMH 18 years ago with one title and 13 employees and we currently employ 315 people across 4 newspaper titles. We are confident we have the talent, experience and brands to see us through Zimbabwe's worst economic crisis.

8. The M&G is operating under the same economic conditions as the rest of the industry, and continues to operate successfully as one of the key independent media voices in South Africa.

9. If the purpose of this negative press coverage about me and my businesses is to persuade me to stop our journalists from doing their legitimate, credible and ethical journalism, then I am afraid that this will never happen.

10. As a former journalist and editor, telling journalists what to do goes against my principles and ethics.

At M&G and AMH we don't tell our journalists which stories to write and which ones to kill. We employ professional journalists and then let them do their work to the best of their ability. This will remain the way of our journalism for as long as I have anything to do with these two great companies.

Source: www.grubstreet.co.za

Reply by Independent News and Media South Africa Group Executive Editor, Karima Brown, July 23 2014

INMSA statement on M&G'is Ncube

July 23 2014 at 04:43pm 

I have noted the statement issued by Mail & Guardian owner Trevor Ncube on Tuesday and the subsequent media coverage thereof.

Mr. Ncube's statement purports to be a response to a number of stories that have appeared in The Star, Independent Online, and a number of our other titles regarding the financial state of his business in Zimbabwe and the adverse effect this is continuing to have on the Mail & Guardian.

Despite claiming to offer a "response" to our stories, Mr. Ncube's statement does not at any point address itself to the factual claims contained in our stories. Instead he veers into a diatribe against Independent, our new owners Sekunjalo and our journalists. He adopts the strategy of deflection which is common to all those who have something to hide, trying to make the issue about the motives of those who dare ask questions, rather than the questions themselves.

Most disturbing however - and the reason I have elected to respond publicly rather than just ignore this obvious and feeble attempt at obfuscation - is that Mr. Ncube has called to question the integrity and professionalism of the Independent journalists who have produced our stories on his businesses. Moreover, he has proven that he is not averse to telling the odd bare-faced lie in his defence.

I will recap briefly what Independent's stories, which we continue to investigate and develop, have said about Mr. Ncube's business and invite him to challenge the factual basis of what we've reported if he so wishes.

Our investigation of the M&G's financial situation is the result of an approach made to us by one ex-employee of the paper at least three weeks ago. This source has subsequently put us in contact with other, current, employees who have corroborated most of what he initially alleged. We have also managed to corroborate our information from suppliers and other outsiders who have had business dealings with the M&G. The story they tell, and which is faithfully reflected in our reportage, is this:

1. Mr. Trevor Ncube is the majority owner of both the Mail & Guardian and Alpha Media Holdings (AMH) in Zimbabwe, an entity he owns jointly with a New York-based non-profit organization, the Media Development Investment Fund.

2. The business model used to generate revenue for the M&G is relatively sound, and the company has in recent times branched out into online and eventing, which has proven lucrative.

3. Despite this, AMH is financially cash-strapped and struggling under the general hardship of the Zimbabwean economy, the reality of which has forced Mr. Ncube recently to close one of the four titles in the stable.

4. Mr. Ncube has used cash from the M&G to subsidize AMH, according to sources who currently work or have worked at the M&G. This has led to non-payment or late payment of staff, contributors, suppliers and other financial obligations.

5. Among the bills the company has failed to pay in the recent past was to their landlord, Growthpoint Properties. This fact was confirmed by CEO Hoosain Karjieker, who told our reporter: "There may have been instances of dispute on the rental in the past but these have all been resolved. There was no eviction order." He indicated that the company was now up to date on its rent, although our sources alleged Growthpoint had to issue an eviction threat, not an order, for the matter to be resolved.

6. The company has failed to pay participants, suppliers and contributors to its Critical Thinking Forums which, according to inside sources, make good money for the company. One such contributor, who spoke on condition of anonymity, waited six months for a payment of R10 000.

7. Staff in the company's advertising sales department have often had to wait for months for their commission payments, or accept staggered payments because the company could not meet its incentives obligations to them.

8. Some staff members have even taken legal advice, with a view to suing the company, sources told us.

9. Mr. Ncube's CEO either confirmed or at the very least refused to deny most of the factual claims put to him by our reporter last week. The only denial he issued was of the claim that the M&G was being used to "subsidize" the Zimbabwean business, and insisted that both companies operated independently with no exchange of resources.

10. In our stories, we recorded Mr. Karjieker's denials and gave his quotes in full and unedited. However, at least one staffer who has since left the company (because of the financial frustrations) insisted their revenues subsidized AMH and said "We paid the salaries of journalists at The Standard" (an AMH title).

11. These sources said Mr. Ncube wanted AMH to survive for "political reasons" (i.e. to have him well placed to influence the anticipated transition in Zimbabwe).

In preparing the stories, at least two Independent journalists in Johannesburg and one in Harare attempted to get hold of Mr. Ncube. Of the three, only our Harare correspondent managed to get hold of and interview him, and only on the follow-up attempt, while the Johannesburg journalists only got to his voicemail (presumably because he was in Zimbabwe at the time).

It is therefore curious and dishonest to claim, as Mr. Ncube does in his statement, that "No effort was made to seek comment from me to verify the allegations."

Moreover, given that Mr. Ncube has now had ample time to deal with the "allegations", it is curious that he does not do so, but rather launches into a tirade about the supposed motives of Independent and its journalists.

As Group Executive Editor at Independent I stand by every word written by our journalists on Mr. Ncube, AMH, and M&G. Our stories are legitimate inquiries into the financial health of an important South African newspaper and whether it is safe in Mr. Ncube's hands. The stories were well sourced, well researched, balanced, fair and written with due care for the interests of people who still suffer the effects of Mr. Ncube's alleged bleeding of the paper.

Since publishing our stories last week and earlier this week, we have received other leads. We will continue to do our jobs as journalists without fear or favour. We will investigate what we think is a worthwhile story, we will bring everything we learn to our readers and to the broader public, and we will not be intimidated by Mr. Ncube's intemperate insults.

As someone who speaks in very glowing terms about himself, his history as a journalist and his supposed commitment to the most basic tenets of our profession, I hope Mr. Ncube can understand our stance.

Karima Brown

GROUP EXECUTIVE EDITOR

Source: www.iol.co.za

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