Kelly hits out at 'fronting' report

Listed employment services provider Kelly Group has dismissed, as “unfounded”, a report that questions its empowerment credentials.

The report was commissioned by the group's ousted deputy CEO, Mthunzi Mdwaba, and the R233 000 it cost is believed to be among the charges Mdwaba will face at an arbitration hearing next month.

Borena Consulting Services' report alleges the recruitment company's empowerment status is two rungs lower than the group's publicly stated credentials. A copy of the report is in ITWeb's possession.

Mdwaba was “removed” from his role as Kelly Group deputy CEO and board director on 24 August, Kelly said in a statement. At the time, Kelly said Mdwaba remained employed by the company, but he also seems to have been suspended at some stage.

Kelly never officially referred to the removal as a “suspension”; however, this seems to have been the case, as Kelly has since lifted the “suspension”.

Borena's 2009 report alleges Kelly's claimed empowerment status in 2008, of being a level three contributor, is misstated. It says the group is a level five contributor. However, the group has lashed back at the report, saying it is unfounded.

CEO Grenville Wilson says the group adheres to the highest standard of governance and “rejected as scurrilous any suggestion that it would seek to mislead its stakeholders by window-dressing its empowerment credentials”.

Empowerdex has also questioned Borena's credentials, pointing out that the company is not a South African National Accreditation System (SANAS) accredited verification agency. “We caution that any BEE assessment conducted by Borena Consulting may not have been conducted in line with the SANAS approved Verification Manual.”

The BEE rating agency adds that it is “completely satisfied that the information provided to us by the Kelly Group in order to conduct our assessment was a full and true disclosure of its empowerment status”. It says the rating was done in accordance with the verification manual.

Mdwaba has held high-profile positions in the ICT sector, and is a former national chairman of the Black IT Forum, and a member of the ICT charter steering committee. He was also involved in the Innovation Hub, Productivity SA and is currently VP of Business Unity SA.

In July last year, Mdwaba was appointed a member of the International Labour Organisation's governing body representing SADC business.