Sanchia Temkin
10 November 2009
Johannesburg — HUMAN capital management company Adcorp was cleared last week in arbitration by a senior advocate in the dispute regarding the suspension of the group chief financial officer, Faunce Burd, and five other employees.
The arbitrator, Roland Sutherland SC, found in favour of Adcorp in respect of all the issues dealt with under the arbitration agreement and ruled that all six employees be summarily dismissed.
Initially, the employees had brought an action in the Labour Court requesting an urgent interdict to prevent the company from instituting any disciplinary action against them and demanding their immediate reinstatement following their suspension.
Citing aggravating circumstances, Sutherland said: "They (the employees) acted with self interest and spiteful conduct and they are summarily dismissed."
The employees claimed they had been victimised, having made a number of unsubstantiated allegations of fraud, corruption and racism against two senior company officials, which they claimed to be a "protected disclosure" under the Protected Disclosures Act. The arbitrator found that the fact they "purported that what they were doing was covered by the Protected Disclosures Act has no merit, and it was doubtful that they ever actually believed it did".
Adcorp CEO Richard Pike said he was relieved that both the company, including the two senior officials whom the "vendetta" targeted, had been totally vindicated . "These individuals placed the interests of their own vengeful vendetta above the interests of the company and with no regard for the ruinous impact their actions would have on the reputations of good people," he said.
One of the matters the arbitrator heard was an allegation of "material misrepresentation and fraud" relating to an alleged overstatement of profit by Adcorp of R1,88m with respect to a profit- share arrangement relating to a supplier of employee benefit products, Crestfin. Pike said it was comforting to be able to dispel any suspicions with regard to the matter and to "finally put it to bed".
The company had recently commissioned a further probe by auditing firm KPMG to deal with new allegations made by the former employees subsequent to the initial independent investigation.
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