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In a letter of resignation published on the JSE's news services (Sens), Munday said he found the publicity and controversy caused by his appointment as Dumisa Ntsebeza's deputy to be "dispiriting in a situation that has not been of my own making".
Munday said he would not have accepted the appointment if he knew it would be viewed as "racist and patronising" as Barloworld's biggest shareholder, the Public Investment Corporation, put it.
Having been appointed to the board in January, Munday was appointed as Barloworld's deputy non-executive chairperson 22 days ago, together with Ntsebeza to lead the company after Warren Clewlow unceremoniously resigned as chairman in January following the firm's public criticism by the PIC for lack of transformation and black executive directors. The PIC holds 17% of Barloworld's stock.
Said Munday: "I would not have accepted my appointment if I had considered it in any way to be 'racist or patronising', or if I did not believe that all members of the board were supportive of the leadership model proposed and the role envisaged for the deputy chairperson." He said it had become clear to him that the dilemma was tormenting for all involved and difficult to solve. "Accordingly, I consider it incumbent on me to assist in finding a solution."
He said the Barloworld board, "which has high-calibre South African and international members with integrity and expertise", clearly believed that the combination of his experience and skills with Ntsebeza would be complementary and value adding for the group.
Continued Munday: "I have never been driven or motivated by positional authority. Rather, throughout my career, opportunities to contribute and add value have been my priority. Accordingly, I announce that with immediate effect I will stand down as deputy chairperson of Barloworld Limited. With the support of shareholders, I will remain on the board as an independent non-executive director."
Immediately after Munday's appointment early June, PIC CE Brian Molefe questioned the need for a deputy chairperson after the position had been frozen for over a decade. Although Barloworld defended the move and said the position of deputy chairperson was necessary, recognising the amount of work required to implement the number of strategic actions the company was embarking on, Molefe wasn't fazed.
He called it "patronising and racist" as it implied the company's first black chairman in its 93 years, Ntsebeza could not manage on his own.
However, Munday wouldn't go down without a fight. In his resignation letter, he said he understood the transformational role the PIC had chosen "as an agent for change in corporate South Africa".
Munday said he "strongly support and encourage this role" although he appealed for the manner in which it was discharged to "be more sensitive". It was also important that recognition and respect was shown by such an influential state-associated enterprise for the role of corporate boards as well as the views and inputs of other shareholders, both locally and overseas, who have equivalent shareholder rights.
But Munday also played to the PIC's point about Barloworld's lack of trust in Ntsebeza's abilities as Barloworld's chairperson. He said he appealed for "due cognizance to also be given to relevant experience and skills required of corporate leaders serving the multiplicity of industries making up our economy."
He said in his view the process in which he was selected had been conducted with good intentions, taking due cognizance of the future needs of Barloworld as it embarked on and accelerated a number of strategic change actions.
Barloworld is in the middle of a deep restructuring exercise in which it will unbundle its stake in cement and lime manufacturer PPC in July.
It is also in the process of disposing of or unbundling non-core assets to focus on being a logistics company with mainly materials handling and motor vehicle retail.
