Sekunjalo reinstates CEO
Nov 20 2009 15:16
Marc Hasenfuss
Cape Town - Scarcely six months after "dis-establishing" the position of CEO, empowerment group Sekunjalo Investments has re-established it.
On Thursday Sekunjalo reported that Khalid Abdulla, the group's chief financial officer, would assume duties as CEO with immediate effect.
In April, Sekunjalo announced that Mo Kajee would step down as CEO as part of a restructuring of the group. Part of that restructuring saw the CEO position falling away, or being "dis-established".
The restructuring was aimed at making Sekunjalo a leaner and meaner corporate beast by becoming a decentralised investment holding company with subsidiary business units operating autonomously.
Sekunjalo's investments span the fishing sector, information technology, healthcare and biotechnology.
While the re-establishment of the CEO post may be viewed with some surprise after the announcement in April, Fin24.com understands the board changes were prompted by governance considerations, particularly the introduction of the King III code on corporate governance next year.
Iqbal Surve (who is also the majority shareholder in Sekunjalo) currently holds the position of executive chairperson.
Market watchers, though, welcomed Abdulla's appointment, especially since he is a "well-liked insider" who knows the Sekunjalo business well.
One noted: "In these difficult times, it's a little more reassuring to have someone who knows the business at the helm rather than bringing in an outsider who needs time to familiarise."
Certainly Abdulla is not lacking experience at Sekunjalo.
He has been with the Sekunjalo Group for more than 10 years, having started as CEO of a healthcare subsidiary. Abdulla also served as CEO of the company's technology and capital businesses.
Abdulla told Fin24.com on Friday that he was up for the challenge: "I understand the business and know where the opportunities lie. I think Sekunjalo is solid as can be."
Another change at Sekunjalo sees Chantelle Ah Sing appointed as an executive director of Sekunjalo, to replace Abdulla as chief financial officer.
Sekunjalo, which has tumbled to 30c from 75 cents per share in mid-April, reports its full-year results to end August at the end of November.
- Fin24.com
