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More leadership turmoil at Kelly

Johannesburg – A third executive at listed employment services group Kelly Group [JSE:KEL] has been slapped with disciplinary charges, adding to leadership tussles at the firm.          

Connie Motshumi, a business development director, has been accused of defrauding Kelly in travel claims to the value of about R150, and of non-disclosure of her business interests.

Motshumi is close to deposed group deputy CEO Mthunzi Mdwaba and insiders claim that the charges are designed to expel her from the company. She is due to appear before a disciplinary hearing on October 13.  

Motshumi's woes follow the dismissal of Lumka Gallant, MD of Kelly's loss-making executive search firm Renwick Talent, after a disciplinary hearing found her guilty of charges similar to those faced by Motshumi.  

Fin24.com was told that Gallant, who is appealing the dismissal, was found guilty of defrauding Kelly of about R350 in travel claims, which the company alleged she inflated.  

Fin24.com understands Gallant is also close to Mdwaba. Both Motshumi and Gallant were recruited by him. Mdwaba himself also faces disciplinary action for non-disclosure of his business interests and other charges.

Sources have alleged that the disciplinary charges were spurred by a leadership tussle between Mdwaba and group CEO Grenville Wilson.
   
Wilson refused to comment on the allegations.

Kelly said in a statement on Thursday: "The Kelly Group does not comment publicly on personal matters relating to its personnel, past or present, among other things because to do so could be unfair to the people concerned.

"The group's general position is that it seeks at all times to behave in a fair and proper manner, and has done so in the case of the individuals to whom you refer."

Wilson and Mdwaba have been at loggerheads for the better part of this year. Documents in Fin24.com's possession suggest the dispute primarily stems from different management styles and Wilson's alleged reneging on his promise to retire later this year to allow Mdwaba to succeed him.

Mdwaba said he would comment once his disciplinary hearing has been concluded.

The leadership drama took another turn last week, when a letter making an array of allegations was leaked. It was addressed to the  directors and claimed that the company used "bullying tactics" to "settle personal scores" with staff.

The letter, which Kelly said was a hoax, also said that Kelly had suffered a loss of 45% in earnings before interest and tax. In a trading update released on Monday, Kelly advised shareholders that headline earnings would be between 35% and 45% down in the year to September 30 2010.

- Fin24.com        

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