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Johannesburg - Controversial businessman Dave King - who has had long-running battles with the South African Revenue Service (Sars) - on Tuesday wrote to shareholders of investment firm Micromega Holdings [JSE:MMG] to explain his return to the company, this time as executive chairperson.
King said there had been significant media interest in his appointment.
"This interest is predominantly aimed at gaining greater insight into how my as yet unresolved legal matters might affect MMG and its shareholders going forward," he said.
King said there were two main reasons for his resignation from the board of MMG 8 years ago.
"I needed time to devote to my legal matters and I wished to distance MMG from my difficulties."
King said that he had made an agreement with Sars "to the point that we signed a settlement agreement in 2009 in which the Commissioner agreed to a full rebate of penalties."
The Income Tax Act precluded settling on a zero penalty basis if the Commissioner believed that he had not received full and frank disclosure or if he believed that King's actions constituted fraud.
"It is therefore clear that Sars' viewpoint has changed substantially since 2002," he said.
The position with the exchange control authorities was similar.
"I reached agreement with the Sarb (South African Reserve Bank) after which they sent a letter to the NPA withdrawing further interest in pursuing criminal allegations."
King added that the agreements with Sars and the Sarb were necessary partly because both state agencies had precluded him from applying for amnesty at the time that this was available.
"This resulted in the litigation continuing to an advanced stage whereby the tax disputes are likely to be finalised by the tax courts in the reasonably foreseeable future and this greatly reduces the need for either the state or myself to settle solely as a matter of convenience."
King said the position with the NPA was more uncertain.
King explained that he had found himself in the latter half of 2010 in a more composed frame of mind regarding the litigation and the outcome thereof.
"I had enough time to devote to normal business affairs and involved myself in new opportunities that I introduced to MMG.
"After further consideration and discussion I eventually agreed to rejoin MMG and to devote my time to the growth of the group. "
He said he was comfortable that this was the right decision for both himself and for the shareholders of MMG.
