S. Afica's Johncom Suspends CEO

By Reuters Posted 04 July 2006 @ 04:11 pm EET     Print     Reprint     E-Mail     Comments

JOHANNESBURG (Reuters) - South African media group Johnnic Communications (Johncom) has suspended its Chief Executive Officer Connie Molusi with immediate effect on full pay pending the outcome of a hearing into his performance, the firm said on Tuesday.

Johncom said in a statement that executive directors and divisional chief executives under Molusi's deputy Prakash Desai were managing the business.

"Shareholders are advised that contrary to what has been suggested in the media, Molusi's suspension is unrelated to any discussions about a (black economic empowerment) BEE transaction or any other potential transaction involving Johncom," the company said.

Shares in Johncom were up 2.75 percent at 56.50 rand by 0926 GMT, outperforming the JSE Securities Exchange's mid-cap index which was 0.1 percent higher.

Media reports earlier this week said Molusi had until Tuesday to accept an ultimatum to leave the company after being at loggerheads with Johncom's Chairman Mashudu Ramano over the firm's BEE strategy.

Many South African firms have sold stakes to black investors in line with the government's BEE affirmative action programme aimed at giving black South Africans a bigger slice of the economy.