/ 4 July 2006

Johncom CEO suspended on full pay

Johnnic Communications group CEO Connie Molusi has been suspended with immediate effect, a board statement said on Tuesday.

”The board of media and entertainment group Johnnic Communications today announced the suspension of group CEO Connie Molusi with immediate effect and full pay pending the outcome of a hearing to consider his performance, to be convened in due course,” the statement read.

”Contrary to what has been suggested in the media, Molusi’s suspension is unrelated to any discussions about a BEE [black economic empowerment] transaction or any other potential transaction involving Johncom.”

The statement added: ”The executive directors of the group and divisional CEOs under the leadership of deputy group CEO Prakash Desai are managing the affairs of the group and have the full support and confidence of the board of directors of the group.”

Business Day earlier reported that Molusi had had several run-ins with Johncom chairperson Mashudu Ramano over the company’s empowerment strategy and faced possible dismissal.

The deal reportedly involved leading business figures Cyril Ramaphosa, Patrice Motsepe and Tokyo Sexwale, and would see Johncom merging activities with media counterpart Caxton.

Caxton chief executive Terry Moolman was to take charge of the envisaged merged entity, the report said.

Moolman was understood to be angered at delays by Johncom management in moving its printing to Caxton from Independent Newspapers. — Sapa, I-Net Bridge