MultiChoice’s corporate governance principles will be tested this week according to deputy finance minister David Masondo.
The Public Investment Corporation believes that the re-election of one of MultiChoice’s longest-serving board members would be a breach of corporate governance principles due to questionable consultancy fees, the Sunday Times
“There have to be consequences where corporates are tone deaf and create structures that are used to undermine the principles of corporate governance,” PIC chairperson and deputy finance minister David Masondo told the Times. However, having been a former CEO of Naspers’ video entertainment division when it still owned MultiChoice, the company believes Volkwyn still has a lot to offer from an advisory position.
“The scope of consultancy services is global in nature and involves advising on key group strategies.”“These were legacy contracts that were necessary for the company because we know that when you employ board members, you employ people who are experts in their own fields as it may be quicker to get an answer from them on a technical aspect rather than getting that from the outside can take longer,” said Masilela.
Masilela said this type of contract is not unique to MultiChoice. The company added that it pays its non-executive directors annually, rather than per meeting, to ensure “their ongoing responsibility to ensure effective governance of the group” is recognised. However, on 2 April 2024, MultiChoice announced that Patel’s resignation as chairman had been put on hold to ensure he could preside over the acquisition negotiations with French media giant Groupe Canal+.
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