Luphert Chilwane
4 November 2009
Johannesburg — THERE was no financial mismanagement at Nafcoc Investment Holding Company (Nafhold) and it was running competently, democratically and according to the highest standards of good corporate governance, CEO Michael Leaf said yesterday.
Leaf, who was addressing a press conference, was responding to accusations made in the media in September by Nafcoc president Buhle Mthethwa, who had called for Nafhold to be liquidated and its directors investigated. Leaf accused her of having created a "false impression and stirring controversy".
"This is becoming crazy that certain individuals have decided to go on public arena with a motive of rubbishing us." He said over the past few weeks, various unsubstantial claims had been made that were factually untrue.
"We were in fact in the process of this (issuing shares to bona fide members) when certain members, headed by certain board members arranged a march in September against Nafhold."
He said some confidential documents were leaked by a board member and taken out of context with the intention of creating a false impression and stir.
"I found Buhle Mthethwa's spurious claims of mismanagement both disappointing and incomprehensible. That is ridiculous. We are concerned that certain lawless elements have in recent years entered Nafcoc bent only on instant gratification and self-enrichment," he said.
He said there was a clear conflict of interest with a specific, fiduciary-related agenda, out of step with the aims of the Nafhold. "Nafhold was created back in the 1990s to create opportunities for fledging black businesses and SMEs, we remain committed to this goal."
He said certain people (at Nafcoc) got irritated, offended and disappointed when Nafhold wanted them to account for the money that was given to them. Leaf said there would be legal action taken against people involved in "rubbishing" the company.
Responding to Leaf's statements, Mthethwa said the march against Nafhold was given a mandate from the Nafcoc federal council, the highest decision making structure of the organisation.
"There is no corporate governance in that institution. For many years, the company failed to make presentations about its financial activities and then the CEO was requested to step down with immediate effect while the company was put under curatorship," Mthethwa said. She insisted she was still a board member of the company and was not prepared to respond to personal attacks. "I don't know which board meeting took that decision that I am no longer a board member.
"What we are saying as Nafcoc is that we will not be distracted by Mike's (Leaf) arrogant corporate thuggery. For the record, Buhle is not representing Buhle but she represents the mandates of the Nafcoc structures," she said.
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