A spat has broken out between the company’s deputy and chief executive over management style, amid accusations of racism
Allegations of racism and victimisation are flying in an apparent power struggle at the highest levels of the JSE-listed Kelly Group.
The employment conglomerate put out a strongly worded statement to shareholders last week, saying deputy chief executive Mthunzi Mdwaba had been suspended and removed from the board with immediate effect. A few days later the group’s financial director, Ferdie Pieterse, released a memo to staff saying the suspension had been “lifted with immediate effect pending due process”.
A source familiar with the power struggle told the Mail & Guardian that exiting chief executive Grenville Wilson and Mdwaba, who was tipped to take over in October this year, have different views on how the company should be run.
Internal emails between Wilson and Mdwaba, which the M&G has in its possession, support this version. In one, written by Mdwaba to Wilson and copied to Kelly chairperson Moss Ngoasheng and his deputy, Malcolm McCulloch, Mdwaba accuses Wilson of attempting to “rule from the grave”.
Mdwaba suggests that their problems boil down to the fact that he (Mdwaba) is an independent thinker and accuses Wilson of “bullying” people who disagree with him.
Mdwaba also make numerous references to differences in management style, accusing Wilson of screaming at and threatening staff members. Some staffers are terrified of Wilson, he says.
“Our people are taking major strain with having to align such divergent styles,” says Mdwaba.
Mdwaba says their friendship “ceased to be the same” when he disagreed with Wilson about how to restructure the company when he took over. This was clear from a list of conditions drawn up by Wilson that Mdwaba had to adhere to before he could be chief executive.
The email claims Wilson tried to extend his term as chief executive after realising that Mdwaba “won’t just be a face, while you continue to pull the strings”.
The letters also contain numerous allegations of racism in the Kelly Group, with Mdwaba insisting that “darkies” in the company are required to know their place and that there have been discussions about dealing with racists in the company.
The email also highlights Mdwaba’s conviction that it is vital for Kelly Group to be in the good books of the ANC government. “We are accused of having Cope [Congress of the People] shareholders,” says Mdwaba. “Whenever possible, we need to be strategic in being involved in certain organisations, events and trips that demonstrate our commitment to the government.”
He argues that his profile in the ANC benefits Kelly Group and its shareholders. “On numerous occasions I have had to make a plan … to sponsor something that is inexpensive and strategically positioned to give us a return on what we spend, purely because we may feel we are being tested from an allegiance point of view,” he says.
He lists a number of business opportunities his political connections have created for Kelly, including those in education and health ventures, claiming that Kelly has benefited from the fact that he cycles with business leaders, ministers and directors general.
Mdwaba joined Kelly in August 2008 when the company bought Torque IT for R38-million and was appointed an executive director three months later.
Kelly Group says Mdwaba’s suspension as an employee has been lifted pending an investigation and potential disciplinary inquiry set for September 22. “His removal from the board still stands,” it said, refusing to comment further.
Mdwaba declined to comment, citing legal advice. The M&G understands Wilson is on leave. Attempts to get comment from him through the Kelly Group were unsuccessful.