Listed recruitment company Kelly Group and its ousted deputy CEO Mthunzi Mdwaba have agreed to part ways, following arbitration.
In a joint statement issued yesterday, the parties said: “Mdwaba recognises that there is no reasonable prospect to continue as an employee of the company and has come to an agreement with the company”.
No further details as to what this agreement is were provided as the settlement is confidential.
Mdwaba joined the Kelly Group in October 2008 as deputy CEO after the staffing company bought training company Torque IT for R38 million. He was removed from the company's board in August this year and suspended as a staff member.
The joint statement indicates the board's decision to remove Mdwaba was because of judgements against the former deputy CEO and the “alleged non-disclosure thereof and reputational risks therefrom”.
Mdwaba had been sued by both Tarsus Technologies and Absa after he and two other partners signed surety for Sourcecom when they bought it out about eight years ago. Sourcecom subsequently failed. Mdwaba has, however, paid back his share of both the debts.
Despite the settlement of the debts, Mdwaba will leave the Kelly Group because of the rift that developed between him and the board. His position as CEO of Torque IT was not clarified, but the announcement states “no further press statements of and concerning this matter may be released by either party”.
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