Pioneer cleans out board

Johannesburg - Food giant Pioneer Foods on Monday announced a major board restructuring that has seen major shareholder PSG Group take control with the appointment of Zithulele "KK" Combi as new chairperson with immediate effect.

Five non-executives, including former chairperson Boy Blackenberg, have resigned to make way for a new board that has committed itself to mending ways with the competition authorities and to "uphold[ing] high ethics" at all times.

Iqbal Surve remains on the board and was promoted to deputy chairperson, while PSG group executive chair Jannie Mouton remains as a non-executive.

The shake-up comes after Pioneer was fined R196m by the Competition Tribunal in February for its participation in a national bread cartel. The group is facing another fine for alleged price collusion at its milling division, while the Competition Commission has indicated it will appeal against the R196m bread cartel fine - arguing Pioneer should be punished harder.

Pioneer has already indicated its interim earnings to end-March will be between 25% and 45% lower due to the bread cartel fine.

"One may say, indeed ,that executive management could have done something more constructive to resolve things sooner," said Combi. He said the new board will do all it can to resolve its problems with the competition authorities.

"Although Pioneer Foods is justly proud of its contribution to broadening consumer choice in key market segments, ironically its biggest criticism, and may I say misstep to date, is the fact that it was found to have participated in anticompetitive activities," said Combi.

"I do not, however, want to justify any actions, as any contravention remains unacceptable and is an offence to the public at large. I apologise unequivocally on behalf of Pioneer Foods for such behaviour."

PSG Capital has been appointed as Pioneer's new sponsor, with immediate effect.

- Fin24.com