Mthunzi Mdwaba's removal from the board of listed recruitment company Kelly Group has been linked to a R12 million judgement awarded to Tarsus Technologies, against him and two other partners in a failed IT infrastructure company.
Tarsus took Mdwaba and his two other partners in the failed Sourcecom venture to court, after the empowered company failed to pay its debts, and won a summary judgement against the trio last September, it has been revealed.
Mdwaba was “removed” from his role as Kelly Group deputy CEO and board director on 24 August. Kelly issued a vague statement to the market, announcing that Mdwaba had been “removed” from the board, but remained in the company's employ.
Sources within the company have attributed Mdwaba's removal to a personality clash between him and current Kelly CEO Grenville Wilson, whose shoes he was meant to fill next month.
Subsequently, it has transpired that Kelly may have used the outstanding R12 million, as claimed by Tarsus Technologies, owed by the now-defunct Sourcecom, as an excuse to oust Mdwaba.
Tarsus Technologies claimed the R12 million from Mdwaba jointly and severally, after empowered company Sourcecom failed a few years ago. Mdwaba and his partners had signed surety for Sourcecom's debts, after the company was bailed out about eight years ago.
Forced out?
Mdwaba has reportedly appealed the judgment and is in the process of trying to settle the matter. However, say sources within Kelly, the judgment has been used as an excuse to drive Mdwaba out of the company.
ITWeb has heard that Wilson had expressed concerns about the Tarsus judgment against Mdwaba, saying that it would tarnish Kelly's brand. In addition, Wilson is believed to be concerned that Mdwaba would be sequestrated, which would prevent him from being a director of a company.
Legal battles
Lithalelanga, which was owned by Mdwaba and two other partners, rescued Sourcecom from liquidation in 2003. However, it failed to secure the R28 million in financing it needed to keep the company going and eventually conceded defeat about two years ago.
Absa, which initially loaned Sourcecom R7 million, was granted a judgement against Mdwaba in the middle of last year.
Mdwaba's share of the debt came to about R2 million with interests and costs. This amount has been paid, and the judgement is in the process of being removed from Mdwaba's name.
However, an ongoing dispute with Tarsus over R12 million that is owed for stock that was bought and not paid for, has yet to be sorted out. Tarsus, which belongs to MB Technologies, was granted a summary judgement against Mdwaba and two other plaintiffs for R12 million last September.
The judgement, a copy of which is in ITWeb's possession, was against Mdwaba, Lyndon Barends and Luvuyo Lubobo in their personal capacity as shareholders of Lithalelanga.
Kelly has previously declined to comment on the Sourcecom issue, and Tarsus declined to comment on the matter. Mdwaba has also declined to comment.
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