No crisis at GijimaAst

Johannesburg, 25 Feb 2008

JSE-listed GijimaAst is not embroiled in a crisis and is confident shareholders will be pleased when it reports its interim results later this week.

This is according to executive chairman Robert Gumede, ex-CEO and independent non-executive director John Miller, and independent non-executive director Malcolm Macdonald.

Over the weekend, an unidentified person sent several media organisations an anonymous tip that things were "not all rosy at the black empire". The information referred to the IT company's board meeting on Friday.

However, Gumede, Miller and Macdonald have dismissed the allegations and questioned why the tipster has "malicious" intentions.

Blowing hot air

The person alleges that discussions with BT are in doubt, with three GijimaAst directors fired because of serious allegations and obstruction in a possible sale to BT.

Additionally, the company's FD - presumably Carlos Ferreira, group FD - is accused of inflating GijimaAst's interim results with the inclusion of R200 million from the Department of Home Affairs' Who Am I online contract. Although an order has been received, the tipster says no work has been executed and the JSE is set to investigate.

The tipster adds GijimaAst's cash flow is under pressure due to late or non-payment by government departments and its top six customers are unhappy due to overcharging.

New CEO, Jonas Bogoshi, and Gumede are attacked in their personal capacities. Bogoshi is under fire for bringing down staff morale; and Gumede, for introducing board dissatisfaction over his relationship with "JZ" - presumably Jacob Zuma.

'Complete rubbish'

This morning Gumede pointed out that the company would have to alert shareholders if directors resigned or were dismissed. He also said GijimaAst is not under investigation by the JSE and urged ITWeb to contact the bourse for confirmation.

Although ITWeb was unable to get official comment from the JSE, an employee clarified that the bourse would only see GijimaAst's interim results once posted on the stock exchange news service.

Macdonald added the company's interim financials had been studied in detail by its audit committee, which he chairs.

"I was very happy with the statements put forward in the interim results. I see no cash squeeze and no representation of work not done or earnings not earned. Obviously someone is trying to discredit the company. But the truth is we walked away from that meeting commenting on how wonderful it had been," he said.

Meanwhile, Miller has praised successor Bogoshi for the work he has done since joining the group.

GijimaAst is expected to release its interim results on Wednesday.