Emslie takes helm at Afdawn

Johannesburg - Former Absa heavyweight Robert Emslie has taken over as chairperson of troubled AltX microlender African Dawn Capital (Afdawn).

He replaced Isaac Mophatlane, who announced his retirement on Wednesday.

Emslie - who at one stage was in the running for the Absa top job before its previous CEO Steve Booysen was appointed - is likely to bring some much-needed clout to the Afdawn board, along with banking heavyweight Christo Weise.

Emslie previously headed up Absa Corporate and Business Bank, until he resigned in January 2009 after 21 years with Absa.

Shareholders may be asking some questions about the timing of Mophatlane's decision to step down, as his letter of resignation was dated well ahead (August 17) of any cautionary announcement and before news of trouble at the firm became public knowledge.

Afdawn has found itself in a fight for survival after irregularities were discovered by the Financial Services Board at Corporate Money Managers (CMM) - a firm in which Afdawn subsidiary Allegro had invested funds. CMM was subsequently placed into provisional liquidation.

The emergence of these irregularities weighed on Afdawn stocks and in early October shareholders - led by Nedbank - staged a coup and removed the executives from the board.

Those forced to step down were CEO Marius van Tonder, financial director Connie van Nieuwkerk and chief operating officer De Wet Vivier.

Van Tonder subsequently resigned as group CEO and as yet a replacement has not been announced.

On Friday Afdawn shares were down 3.2% (3c) to 92 cents per share.

- Fin24.com