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BMF concerned about PPC 'shenanigans'

Johannesburg - The Black Management Forum (BMF) on Thursday expressed concern about "shenanigans" between the PPC [JSE:PPC] board and its former CEO Ketso Gordhan.

"The country cannot afford the ongoing board shenanigans," it said in a statement.

"Whilst... [this] is by no means a true reflection of what is happening in the private sector, the BMF is deeply worried about the consequences and after effects, real or perceived."

It said it was concerned that this was undermining the black majority and African-led board of the cement company.

The BMF said it had "huge respect for the talented and competent members" of the board, and viewed the board as one of the most transformed in the country.

It condemned proposals to change the board's composition.

READ: PPC backed by top shareholder ahead of vote

"The BMF was initially encouraged by Mr Ketso Gordhan’s approach to deal with wage inequality in the workplace. He offered an innovative and practical approach to dealing with this searing issue."

PPC said in September that Gordhan had stepped down "due to differences of opinion with the board".

Gordhan subsequently said the board opposed his "desire to exit a senior executive" who he believed was putting the company at risk.

READ: Ketso Gordhan is in a fighting mood

He then reportedly tried to get shareholders to help him get his job back and put in a more effective board.

He told Bloomberg on Tuesday that PPC may struggle to continue an Africa expansion plan because a deal to obtain US200 million of funding was close to collapse.

He said the loan from a development finance institution probably would not be completed unless he received shareholder backing to return to the post. He reportedly declined to identify the lender.

READ: Gordhan: I will go back in a heartbeat

PPC then said in a statement on Wednesday that Gordhan was in breach of a separation agreement by making "defamatory" remarks about the board in the media, and was also in breach of an undertaking given by his lawyers, Harris Nupen Molebatsi

"So far the board has acted with restraint and has avoided a public spat with Mr Gordhan," it said in a statement.

"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."

READ: PPC fires back at Ketso Gordhan

Gordhan could not be immediately reached for comment on Wednesday and Thursday.

The board named the PPC senior executive as chief financial officer
and said Gordhan gave the following reasons for wanting her fired:

- She had a bigger office than he;

- She had requested reserved parking, which was declined;

- She refused to participate in a voluntary salary sacrifice scheme, which Gordhan had initiated to bridge the wage gap between the highest and lowest paid worker;

- She was interrogating a loan agreement which Gordhan had verbally agreed to with a potential funder; and

- She had ill-treated an employee, who 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 said.

"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."

ALSO READ: Ketso Gordhan holds on to PPC shares

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