Sekunjalo sues former director

Johannesburg - Investment group Sekunjalo Investments [JSE:SKJ] on Tuesday advised that its board and that of its subsidiary, Premier Fishing SA, have instituted legal action against a former director of Sekunjalo and the former CEO of Premier Fishing, Kevin Patel, and one other for the recovery of damages suffered by Premier Fishing due to their alleged breach of contract, in the amount of R64.9m.

The legal proceedings have been initiated in the Western Cape High Court.

Pleadings were in the process of being filed, and it was anticipated that the matter would be heard during 2013.

Sekunjalo added that it was considering doing a forensic investigation into transactions entered into by management while Patel was CEO of Premier Fishing.

These transactions included Mauritian fish trading firms as well as possible fraudulent activity and mismanagement.

The company initiated this investigation after an extensive due diligence into the financial and other transactions that took place at the time of Patel's tenure as CEO of Premier Fishing.

Sekunjalo said that Premier Fishing had suffered these losses in the 2008 financial year and these losses were provided for in full during that year and accordingly would have no negative impact on its current and future results.

"The company is determined to hold past executives accountable for their actions and will pursue these vigorously. In terms of Corporate Governance as well as considering all stakeholders, the relevant board of directors felt obliged to act against the executives in this manner where applicable," it said.

Sekunjalo advised shareholders that it had the necessary internal controls in place which were actively monitored to ensure good corporate governance.