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Vodacom fights nepotism claims

Jan 17 2010 08:01 Fin24.com reporter

Company Data

Vodacom [JSE : VOD]

Last traded R103.50
Change R-0.40
% Change -0.38%
Cumulative volume 795,240
Market cap R154.00bn

Last Updated: 25/05/2012 at 17:43. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Johannesburg - Vodacom [JSE:VOD] is fighting tooth and nail to keep secret a potentially embarrassing forensic report from KPMG, concerning allegations that former CEO Alan Knott-Craig snr exploited the cellular company's resources for the benefit of his family, Timeslive.co.za reported on Sunday.

Among the charges levelled against Knott-Craig snr are that his son, Alan Knott-Craig jnr, was given office space and millions of rands to build and promote his businesses; that a company owned by his niece and nephew, and which was on the verge of bankruptcy, was awarded an exclusive multi-million three-year marketing and advertising contract without a proper tender process; and that he arranged for Vodacom to pay tens of thousands of rands for a call centre employee to be trained as a magician.

Knott-Craig snr has led Vodacom from inception in 1993 until 2008, and sits on several major boards. Vodacom is now the 16th largest company on the JSE, with a market value of R79bn.

According to the Timeslive.co.za report, both Vodacom's current chairman, Peter Moyo, and former chairman, Oyama Mabandla, have said the report found there were charges that warranted "further investigation" and that "there were recommendations for areas that needed improvement".

The report is central to a Labour Court dispute with a whistle-blower - who the company allegedly claimed it fired for "grossly inappropriate conduct" - but Vodacom has refused to produce it, said Timeslive.co.za.

- Fin24.com

 
 
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