Johannesburg - Cipla Medpro South Africa [JSE:CMP] said on Monday its CEO had
stepped down and he planned to take legal action against the company he
founded, ending months of speculation about his future at the drug maker.
Cipla Medpro, which has a tie-up with India’s Cipla, said
chief executive Jerome Smith stepped down late on Friday “on the basis of an irretrievable
breakdown in the working relationship with the board and alleging he was forced
South Africa’s third-largest pharmaceutical firm suspended
Smith in August pending an investigation into “serious allegations” that it had
previously declined to identify.
It said on Monday the suspension was based on more than 20
charges against Smith including potential “gross misconduct” and “dishonesty”
for approving bonuses and pay rises for himself that were not recommended by
The charges also allege Smith may have taken loans or other
financial assistance from the company without proper approval, and had 45
people on the company’s books who were not actual employees and were paid on
The company said Smith planned legal action against it,
which it planned to defend.
Shares of Cipla Medpro were up 4% on the news.
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