Johannesburg, 28 Apr 1999
Infotel company ATIO says it has already replaced the MD of its Customer Information Services (CIS) section. The previous MD, Mike Higgo, left under a cloud last week. Pieter Jordaan, of the company`s telecommunications division, will replace him.
All other positions left open by an executive walkout have also been filled.
Gary Craul, ATIO`s chief executive, says Higgo resigned shortly after the ATIO board suspended him on the grounds of uncompetitive behaviour.
Craul says ATIO plans to take "strong legal action" against Higgo. Four other CIS executives resigned 48 hours after he left the company, and all are said to be joining rival Spicer. Craul says this is in breach of a restraint of trade agreement the company had with Higgo, which stipulates that he may not entice or attract staff for a period of three years after his employment is terminated. "We will not stand for that kind of thing," Craul says.
The CIS division has historically been one of ATIO`s most profitable divisions. Craul says this will not be affected by the walkout. "Higgo joined us less than a year ago, and all the execs that left with him were his appointments. They have been with us for less than a year." He says the division is profitable because of long-term relationships with clients, and has been so for more than three years. "We are not hurting one bit. These men were not responsible for the CIS profitability. It is more like a dark cloud has lifted from the division."
Higgo could not be reached for comment, but he told Business Day that he would fight any legal action. He denied that he had taken corporate data, and said that staff had left because of discontent with company management.
Craul could not respond directly to such statements due to the pending legal action, but indicated that he felt the company had sufficient evidence to prove a breach of restraint of trade.
Both ATIO and Spicer have said they bear no animosity towards one another and that the incident will not affect their relationship.
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