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Nafcoc protests against 'abuses'

Sep 29 2009 16:28

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The chamber said it had established the Nafcoc Investment Holding Company (Nafhold) with the aim of benefiting its members in terms of the broad-based black economic empowerment process.

"However, unintended consequences have resulted in the executive directors blatantly abusing the confidence, trust and loyalty which the Nafcoc members had bestowed on them," the chamber said in a statement.

"Nafcoc has exhausted all other available avenues in an attempt to correct the situation, without any success," it said.

The chamber said it would now embark on a mass protest against Nafhold.

"This protest is as a result of Nafhold's insistence on withholding dividends from investments that have accrued to its shareholders, being Nafcoc Provincial and Sectoral structures."

It said the CEO and the board chair were allegedly withholding the shares to be issued to members.

"The shareholders have also not benefited from any assets that have been disposed of.

"Furthermore, Nafhold management has been responsible for a number of corporate governance breaches," Nafcoc said.

It alleged that Nafhold had failed to hold annual general meetings and that it had also failed to distribute audited financial statements.

"This is despite the numerous calls by its shareholders to do so.

"We are, therefore, compelled to hold a march in protest against this mismanagement," the chamber said.

The march will be held on Wednesday, September 30.

It will proceed to the Nafhold office in Sandton, Johannesburg where a memorandum of grievances would be handed over.

In the memorandum Nafcoc said it would demand that Nafhold, with immediate effect, issue anticipated shares to its members. It would also demand that monies due to trust/structures be fully paid on an annual basis.

Nafcoc has also demanded that the CEO and chairperson of Nafhold's board resign with immediate effect and that Nafhold be subjected to "good corporate governance".

The chamber said it wanted a curator to be appointed to "investigate and dig deeper into the flouting of corporate governance by the CEO and chairman of Nafhold".

 
 
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