As it happened: e.tv boss challenges suspension

The suspended e.tv boss Marcel Golding turned to court to have his suspension as chairperson of Hosken Consolidated Investments overturned. The judge will rule on Monday.

(Pic: Matthew le Cordeur)

Marcel Golding outside court

(Pic: Matthew le Cordeur)

Marcel Golding in court papers: Their desire to have me removed is unrelated to the best financial interests of both Sabido and HCI shareholders and is directly related to the pursuance of an agenda to exert greater control over news content aired by e.tv and its related broadcasters.

Marcel Golding in court papers: Discussions remained constructive and amicable until Sactwu indicated that it was not interested in any outcome where I would remain on as the CEO of Sabido. My understanding of the situation is that Sactwu’s stance is directly related to a desire by Sactwu to exert greater control over news content at e.tv (and eNCA) by ensuing that a CEO less independent than me assumes control over Sabido.

Marcel Golding in court papers: The essence of the separation proposals involved creating a consortium which, through an appropriate vehicle – possibly Seardel – would assume control of media assets (which I would run) while HCI would assume control over all non-media assets. In this way potentially destructive difference of opinion over future strategy and personality issues could be avoided.

Judge to hand down ruling at 10am on Monday.

Marcel Golding in court papers: I made this tender in order to indemnify Sabido against any possible loss. I made the same tender to Remgro in two separate meetings well before the disciplinary process was initiated. It was not an admission of wrongdoing as I still believe the transaction was strategically important. When I met with Sactwu general secretary Andre Kriel and president Themba Khumalo on 12 September 2014, neither of them mentioned anything regarding the Ellies transaction nor anything relating to breaches of corporate governance.

Marcel Golding in court papers: Copelyn raised the Ellies transaction and accused me of acting “fraudulently”. It was after this that I realised I would not get any support for the Ellies transaction and would need to come up with some remedy to deal with it. Subsequently, after discussion and agreement with Govender, I decided to tender that I would pay for the shares myself and take ownership of them.

Pretorius says there was no "ah ha" moment for Golding as he was fully part of the HCI discussion.

HCI counsel Pretorius says hearing would take place at 10am on Monday

HCI wishes to reaffirm that it and its shareholders have always respected the editorial independence of etv, and will continue to do so. As soon as circumstances permit, a further press announcement will be issued by the company.

HCI claims the allegations now made by Marcel Golding in this regard, which emerged following the recommendation of the HCI board’s sub-committee to refer the matter to a disciplinary enquiry, are also regarded by HCI as “purely opportunistic” on his part.

HCI said that in the fifteen years that HCI has held its significant interest in et.v, it has never been suggested by either Marcel Golding or any other party that HCI, or any of its shareholders has interfered, or attempted to interfere in the editorial independence of e.tv.

HCI says in a statement any allegations by Marcel Golding that the institution of disciplinary proceedings has been motivated by “ulterior, political purposes namely, to interfere with the editorial independence of e.tv by HCI shareholders is fallacious and is denied.

Golding counsel: We're not dealing with an ordinary employee. He's an executive of the holding company.

Sactwu's Andre Kriel in an earlier interview with Fin24:

I don't want to get into a public smearing campaign with Marcel Golding as I still have high respect for him. I met with him and our Sactwu president Themba Khumalo about three weeks ago to hear Marcel’s  side of the story. In the discussion there was not one incident where he mentioned any interference in editorial content. Now it surfaces in court papers out of the blue. I am saddened, that is all I can say.”

Golding counsel: The question is not who are the employers of Golding. The question is which employer on these charges as a matter of law have the power to pursue them.

Andre Kriel of Sactwu: I have known Marcel for many years and it is a very sad moment in my relationship with him. This is the first time such an accusation has been raised in our relationship spanning three decades.

Comment from Sactwu, which is in the centre of Golding's allegations of political interference:

We are taken by surprise regarding allegations of editorial interference, Andre Kriel, general secretary of the SA Clothing and Textile Workers Union told Fin24.

Sactwu is HCI’s biggest shareholder with a 32% stake.

Golding counsel: What does HCI want to charge Golding with at disciplinary hearing? The charges they want are artificial.

Marcel Golding in court papers: The Ellies purchase of R24m involved is less than 1% of the group’s turnover. The manner in which we have conducted business in the past, the CEO had discretion to make investment decisions on behalf of the company with the expectation that they would subsequently be ratified. The next time the Ellies issue was raised with me was at a meeting between Shaik, Govender, Copelyn and myself on Friday August 15 2014.

Marcel Golding in court papers: Between March 2014 and July 2014 Investec on behalf of Sabido spent R24m to purchase Ellies shares. The day before the Sabido Board meeting of August 7, I told Govender and Copelyn that I had acquired approximately R24m worth of Ellies shares and it was now time to raise it at a Sabido level given that with the drop in the share price there were more shares available on the market.

Golding counsel: All we are asking for is interim relief

Marcel Golding in court papers: From March 2014 the relationship between Copelyn and me had become so strained there were fewer and fewer discussions between us on any matter and, accordingly, with respect to Ellies.

Marcel Golding in court papers: When Sabido met with Ellies and their advisers Java Capital in August 2013, my view was that Ellies represented a useful investment opportunity even though their shares were overpriced at R7.40. I accordingly waited for the share to drop to the R4 level in March 2014 and at that point instructed Investec through a nominee account to build our holding incrementally.

HCI's shares down 0.83%, trading at R151.77

Golding counsel:  In October 22 applicant puts papers together. Can hardly say he was tardy in this respect.

Golding counsel: How can Golding go to AGM or at hearing? He is then warned that hearing will go ahead without him should he not be there.

Golding counsel: This letter on October 20 for necessity to go to court. For the first time he's told he works for HCI and irrespective of what views he has, the disciplinary action will take place.

Golding counsel: He sets out extensive reasons why the proceedings can't take place the way HCI wants it to happen.

Marcel Golding's counsel takes stand

Pretorius: No reason why the enquiry shouldn't take place in its proper place in due course - all these issues can can raised on Monday and in front of the CCMA. It doesn't pass grave injustice to be heard in this court.

HCI counsel Pretorius resumes argument: There was inadequate notice for this application

Court in session again - probably the shortest break in court history

In other broadcasting court news:

The Western Cape High Court ordered on Friday that SABC chief operating officer Hlaudi Motsoeneng be suspended with immediate effect with full pay.

"The board of the SA Broadcasting Corporation Limited (SABC) shall, within 14 calendar days of the date of this order, commence, by way of serving on him a notice of charges, disciplinary proceedings against... Mr George Hlaudi Motsoeneng," Judge Ashton Schippers said in his order.

"The disciplinary proceedings... shall be completed within a period of 60 calendar days after they have been commenced." He said if the disciplinary was not completed in the allocated time the SABC had to deliver an affidavit to the court explaining why and when it would be completed.

Motsoeneng was entitled to five days of delivery of the affidavit by the chairperson to deliver an answering affidavit. "Pending the finalisation of the disciplinary proceedings... [Motsoeneng] shall be suspended on full pay," Schippers said. The SABC, its board, its chairwoman Ellen Tshabalala and Communications Minister Faith Muthambi were ordered to pay the costs of the application. The Democratic Alliance applied for an urgent interim interdict suspending Motsoeneng pending a review of the decision to appoint him. In February, Public Protector Thuli Madonsela released a report on Motsoeneng, while he was acting COO.

She found his salary increased from R1.5m to R2.4m in one year, that he had purged senior staff, and misrepresented his matric qualifications to the SABC. Madonsela recommended that a new COO be appointed at the SABC within 90 days. In July, Muthambi announced Motsoeneng's permanent appointment. She said he was cleared of all wrongdoing by a legal firm before the decision was made.

The DA then launched a high court bid to have his appointment set aside. This was the second part of the DA's application which would be heard next year.

- Sapa

Marcel Golding in court papers: After the Keene-Young debacle I was in an untenable situation and did not enjoy the support of my HCI co-founder Copelyn to deal with Shaik’s attempts at interfering in news content. Before this event there had been serious problems and we had already considered our options to go our separate ways, but for me these incidents of interference in news content were the last straw.

Marcel Golding in court papers: On 14 August 2014 I was sent the following SMS “instruction” by Andre Kriel of SACTWU: “Will call you tomorrow. Violet Seboni Memorial lecture will be on 25 August in Johannesburg, Minister Patel will deliver the lecture. We require eTV to cover it live. Please arrange.”

Court adjourns for short lunch break.

Marcel Golding in court papers: Shaik’s immediate reply was: “For you, it is an alert. Remember last year we were under pressure from Government because it was said we ripping off pensioners. We had to meet Pravin Gordhan as they wanted to raise (gambling) taxes. I am alive to how negative media plays put in government. It rapidly degenerates into self righteous crusade with government escalating controls or taxes.”

In other media suspensions the Western Cape High Court ordered that SABC COO Hlaudi Motsoeneng be suspended with immediate effect. Sapa quoted the DA as news source.

Marcel Golding in court papers: On 19 May 2014 I received another text message from Shaik. This time it was about the possible mention of another HCI affiliate, Tsogo Sun: “Maggs on Media. He will feature a story on gambling addiction. See the story before he airs it. Watch the visuals. It would be terrible if he features Tsogo. Check to see if it is balanced and includes activities we take for responsible gaming.”

HCI counsel Pretorius: The argument is one of lawfulness verses fairness.

HCI counsel Pretorius: This is not about a dismissal - it's about a calling to account.