ppc media release.docx
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Ppc Media ReleaseTRANSCRIPT
Directors BL Sibiya (Executive Chairman) TDA Ross (Lead Independent Director) DJ Castle ZJ Kganyago NB Langa-Royds MP Malungani SK Mhlarhi B Modise T Moyo* MMT Ramano J Shibambo *Zimbabwean
Company Secretary JHD Snyman
PPC LtdPPC Building 148 Katherine Street (Cnr Grayston Drive) Sandton JohannesburgPO Box 787416 Sandton 2146 South Africa
Tel +27 11 386 9000 Fax +27 11 386 9001www.ppc.co.za
Reg No 1892/000667/06
MEDIA RELEASE 05 NOVEMBER 201 EMBARGO: NONE
PPC BOARD SETS THE RECORD STRAIGHT
The Board of PPC has noted with concern the recent statements in the media by the former
CEO, Mr Ketso Gordhan. These statements are defamatory and demonstrate a complete
disregard of the Board, governance processes and the interest of shareholders.
Mr Ketso Gordhan is in breach of the separation agreement and is also in breach of the
undertakings given by his lawyers, Harris Nupen Molebatse Inc.
So far the Board has acted with restraint and has avoided a public spat with Mr Gordhan.
The Board had previously indicated to his lawyers that if Mr Gordhan continues to ignore
the terms of his separation agreement, and continues to make disparaging comments
about the Board, the Executives and the Company, the Board will be forced to place into
the public domain, the embarrassing circumstances surrounding the reasons for his
resignation.
The Board in its (SENS) announcement on the 22nd September 2014, acknowledged the
contribution Mr Gordhan had made to PPC. It had never been the intention of the Board to
embarrass Mr Gordhan.
Between the 4th and 19th September 2014 Mr Gordhan sort to terminate the services of the
Chief Financial Officer, Ms. Tryphosa Ramano on the basis of the following five reasons:
1. She had a bigger office than him.
2. She had requested reserved parking, which request was declined.
3. She refused to participate in a voluntary salary sacrifice scheme, which Mr Gordhan had
initiated to bridge the wage gap between the highest and lowest paid worker.
4. She was interrogating a loan agreement which Mr Gordhan had verbally agreed to with a
potential funder.
5. She had ill-treated an employee, who Mr Gordhan had employed. This employee and her
husband worked in the same department.
The Board was of the view that the reasons advanced by Mr Gordhan were not substantive
and did not warrant the termination of the CFO. It being noted that Mr Gordhan was always
complimentary of the CFO in his deliberations with the Board and publicly as evidenced by
his comments at the PPC Women’s Forum which was held on 8 August 2014, he boastfully
acknowledged her as the best CFO he had worked with and proclaimed her as “his right
hand partner in the business”.
This was followed a week later by an offer by the former CEO to pay for the CFO’s holiday,
which offer was declined by the CFO.
The Board put a process in place to mediate the situation between the CEO and the CFO,
as the Board strongly believed that both of them were crucial to the company. This process
was undermined by the former CEO, culminating in a legal threat by the former CEO to the
Board.
The former CEO has been with the company for 20 months and in that period had resigned
twice. This type of behaviour was concerning to the Board and this trend was expected to
continue.
The current board has a total of 36 years’ experience on the PPC Board. The individual
board members have multi-disciplinary skills which are complementary and lead to robust
and effective board deliberations.
The board has always carried out its duties with due care, skill and diligence, being
cognisant at all times that their duty is to do what is in the best interest of all stakeholders,
in particular the shareholders and employees.
The allegation that the Board is malfunctioning surfaced when the former CEO, embarked
on an extensive media campaign to be reinstated as CEO of the company as according to
him “he is the right man for the job”. He has also articulated his desire to reconstitute the
Board. In the first requisition for convening a special meeting given to the company on the
8th October 2014, it was proposed that four of the current board members be re-elected.
None of the four had been approached to confirm if they were willing to stand.
The four directors declined to be part of the proposed new board as the current board
(except Mr. Darryl Castle who appointed 17October 2014) was unanimous in their decision
that the former CEO should not be reinstated.
The current board has the expertise to run the company, and has never faced criticism in
this regard until accepting the resignation of the previous CEO. The Board continuously
assesses its board membership to ensure correct expertise, this is evidenced in the recent
appointments of Mr Todd Moyo and Mr Castle who bring invaluable Africa experience on
board.
In 2011, the company launched a new vision: to grow PPC into a leading emerging market
business. This was a new strategy to carefully and deliberately grow our geographic
footprint outside of South Africa. The African strategy predates the former CEO, Mr
Gordhan.
The Board has and continues to insist on high standards of corporate governance and has
ensured that management provides the board with sound and proper information on which
to base decisions. The project in Algeria is a case in point. Mr Gordhan’s statements that
a financial institution has indicated that it is not going to grant a loan to the company as a
result of his exit is factually unfounded and damages the image of the company and could
be interpreted as actions of a delinquent director.
The Board and the Executive committee wish to state that the growth momentum of the
company remains on track with signed EPC contracts for four projects viz.: Rwanda, DRC,
Ethiopia and Zimbabwe with construction underway. These projects are progressing well
against expected timelines and within budgets:
The project in Rwanda is 90% complete. Busi Legodi is the CEO and has 18 years’
experience with PPC.
In Zimbabwe, Njombo Lekula serves as CEO and has 20 years’ experience with the
company.
In Ethiopia, the expansion project is progressing well against targets and timelines, with
an increase in PPC’s shareholding as announced this morning to 51%.
In the DRC, the project is progressing well and the company has established a trading
operation.
The Board remains committed to recruit and appoint a suitable CEO as a matter of
urgency.
Issued on behalf of: PPC Board of Directors
By: Kingmaker Consulting
For more information: Rams Mabote
Tel: 011-7145019
Email: [email protected]