/ 12 October 2010

New ‘victims’ in Kelly race wars

New 'victims' In Kelly Race Wars

The ugly race row between the Kelly Group’s senior executives has claimed two more victims, say sources who work for the JSE-listed employment giant.

A number of employees sympathetic to the former Kelly deputy chief executive, Mthunzi Mdwaba, told the Mail & Guardian, on condition of anonymity, that a witch-hunt in the company had claimed the scalps of Connie Motshumi and Lumka Gallant, two black senior executives.

The group said in a statement that it did not comment publicly on personal matters relating to its personnel, past or present, because that could be “unfair to the people concerned”.

“The group’s general position is that it seeks at all times to behave in a fair and proper manner and has done so in the case of the individuals to whom you refer,” it said.

The insiders alleged that the group had used “petty” disputes over petrol claims to discipline and dismiss the two and added that racism was rife in the company.

The sources said that the two female executives were targeted because Mdwaba had employed them in their current positions and described them as “casualties of Mdwaba’s departure”.

“Whatever Mthunzi has created must be destroyed,” said one source.

Gallant, who has been dismissed, was hauled over the coals over 134km of petrol claims with a value of R391, which Kelly disputed.

Gallant was given two working days to prepare for her disciplinary hearing and was dismissed six working days after being notified of the charges.

The disciplinary hearing of Motshumi, who faces similar charges to those of Gallant, is set for next Wednesday.

She has also been charged with petrol-claim fraud, with the alleged distance in dispute being 138km, valued at R405.

One source contrasted it with R26-million worth of business she had reportedly brought into the company in the past financial year.

Motshumi has also been charged with not declaring her business interests to the group.

The M&G has reported that Kelly put out a strongly worded statement to shareholders last month announcing that Mdwaba had been suspended and removed from the board with immediate effect.

Days later the group’s financial director, Ferdie Pieterse, released a memorandum to staff saying the suspension had been “lifted with immediate effect pending due process”.

But the memo did not state whether Mdwaba would be reinstated to the board or as deputy chief executive.

A source familiar with the power struggle said at the time that exiting chief executive Grenville Wilson and Mdwaba, tipped to take over in October, had sharply contrasting views on how the company should be run.

Internal emails between Wilson and Mdwaba, which the M&G has in its possession, contain allegations of political influence and victimisation.

They also contain allegations of racism in the group, with Mdwaba insisting that “darkies” in the company had to know their place.

Mdwaba alleges that Wilson “intimidated” staff and describes his treatment of Gallant as “unacceptable” and that he was “determined to have her fail. You do not listen to what she (Gallant) has to say; any ideas she has are attacked as they come out of her mouth,” he says in the email.

“Connie and Lumka in my view are very promising black executives that I know can be managed to succeed, but need an experienced hand at transformation from a diversity point of view,” says Mdwaba in the emails. “Yours is not.”

Both Gallant and Motshumi refused to talk to the M&G last week after taking advice from their lawyers.

The M&G understands that at Mdwaba’s disciplinary hearing two weeks ago it was agreed the dispute would go to private arbitration next month.

Attempts to contact him last week were unsuccessful, but he has said that he is under strict instructions from his attorneys not to speak to the press.

The M&G also contacted Kelly Group chairperson Moss Ngoasheng who refused to comment on the dispute between Wilson and Mdwaba and the disciplinary action taken against Gallant and Motshumi.

Ngoasheng said disciplinary matters are not his concern and he was only concerned with shareholder matters.

“The matter is being discussed. There is an arbitration process that is happening. I am not going to discuss it,” said Ngoasheng.