Sasol backer wants CEO locked up

Johannesburg - A disgruntled Sasol shareholder has told CEO Pat Davies to hand himself over to the police, following recent revelations about the petrochemical giant's anticompetitive conduct.

Sasol started its annual general meeting on Friday by offering shareholders an apology for its numerous run-ins with competition authorities in the past year. "From the outset we are regretful of our non-compliance," said chairperson Hixonia Nyasula.

But seeking forgiveness was not enough to safeguard the firm's top-level management from shareholder-in-attendance Sibusiso Magwaza, who said: "The board has dealt with the matter of truth and reconciliation by coming out and issuing public apologies, but will they hand themselves over to the police?"

Davies responded with a steadfast no. "I personally have a clear conscience in this matter," he said, adding that being accountable for about 34 000 employees around the world was by no means a small task.

In May this year Sasol Nitro, a division of the group, paid a R251m fine to the Competition Commission for collusion in the local fertiliser industry.

The firm is also in the throes of appealing against a R3.7bn fine tabled by the European Commission, which found the company guilty for leading a paraffin wax cartel in Europe.

Commenting on the same issue, investment analyst at Element Investment Managers David Couldridge blamed Sasol's remuneration system of target setting for the unethical conduct of the firm's employees.

Another concerned shareholder, Moses Moloele, took the spotlight off Davies by questioning the remuneration of Nyasula, who to his mind was being paid "excessively".

But non-executive director Henk Dijkgraaf defended Nyasula's pay. "We carry out extensive market surveys with the aim to align the level of remuneration with the market," Dijkgraaf said.

All resolutions were passed.

- Fin24.com