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Labat execs skim off cream

Nov 01 2005 10:42 Jana Marais

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Cape Town - Labat Africa, run by Brian van Rooyen of SA Rugby, has eight lucky shareholders despite the fact that it has been a difficult year for the company.

Van Rooyen and his seven board members were rewarded with R5.431m over the year ending February - a quarter of the struggling company's market value at Monday's share price of 12c on the JSE.

Of this money, R1.855m found its way into Van Rooyen's bank account, according to the group's latest annual report.

This might not seem as much as the controversial R59m that Whitey Basson of Shoprite earned, but when the two companies' market value is taken into account, Van Rooyen earns 11 times more than the retail king.

Van Rooyen's R1.855m is about 8% of Labat's market value, while Basson's R59m is a mere 0.7% of Shoprite's market value.

Among the other Labat directors that were compensated relatively well are David O'Niell, head of operations, who received R985 000, and Dawood Asmal, financial director, who received R662 000.

Three non-executive directors received R1.929m in total for other services rendered. Two of them were paid for operational responsibilities to Labat subsidiaries.

Labat shareholders met on Friday to, among other things, approve these remuneration packages and re-appoint Van Rooyen as director. However, it is not clear whether this had been done.

Reporters were refused access to the meeting. Late on Monday afternoon, there was still no news of the meeting on the JSE's news service, Sens.

Labat also did not respond to queries.

Trading in Labat shares was suspended for quite some time earlier this year after the JSE's monitoring panel for generally acceptable accounting practises were not satisfied that the company's statements met minimum standards.

Changes had to be made to, among other things, the way in which the company declared goodwill, investments, non-tactile assets, exchange rates, start-up costs and acquisitions of fixed assets.

The company's revised pre-tax losses of R21.9m in 2004 increased to R62.6m in 2005.

 
 
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