/ 1 August 2006

‘What happened with Molusi and why?’

The silence on the full reasons for the axing of Johnnic Communications CEO Connie Molusi has been questioned by shareholder Coronation Fund Managers.

Business Day on Tuesday reported Coronation as saying Johncom’s lack of disclosure on the matter was ”unacceptable” for a publicly listed company.

”The point has come where we will contact the board to get an explanation as [to] what happened with Molusi and why,” said Coronation portfolio manager Gavin Joubert.

Coronation owns 12% of Johncom.

The company announced on Monday that Molusi had been fired, without disclosing what transpired at a disciplinary hearing.

In a statement the company said: ”The board of directors of Johnnic Communications Limited [Johncom] has lost confidence in its CEO, Mr Connie Molusi. Accordingly, Mr Molusi’s employment with Johncom is to be terminated forthwith.”

The company and Molusi had been unable to reach agreement on the reasons why the board had lost confidence in him, Johncom said.

Molusi was suspended earlier in July. At the time the board said a hearing would take place to consider Molusi’s performance.

Although Molusi signed a deal with Johncom on Monday, the company did not reveal the terms and did not say whether it had agreed to pay him money, said Business Day.

Earlier reports said Molusi had been offered a golden handshake of R15-million. – Sapa