| Mon 12 Mar 2012, 7:05 | | KEL - Kelly Group Limited - Kelly Group dismisses fronting allegations |
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KEL
KEL
KEL - Kelly Group Limited - Kelly Group dismisses fronting allegations
KELLY GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1999/026249/06)
ISIN: ZAE000093373
Share code: KEL
KELLY GROUP DISMISSES FRONTING ALLEGATIONS
Johannesburg, 11 March 2012 - JSE-listed staffing provider Kelly Group today
dismissed as scurrilous and without foundation allegations by Solly Tshiki &
Associates (STA) and Ndaba Ekude (NE) that the group is using its enterprise
development joint venture operations as a front to win tenders.
Marula Staffing (Kelly Group: 49%, NE: 51%) and Workforce Management (Kelly
Group: 49%, STA: 51%) are joint venture enterprise development operations
established by Kelly Group. Workforce Management is currently under
liquidation.
Among the allegations levelled at Kelly Group are that they controlled the bank
accounts of the joint ventures, decided how profits should be split and denied
its partners access to bank account statements and financial records.
Kelly Group chief operating officer Ferdie Pieterse said each of the group`s
joint venture partnerships were governed by a formal shareholders` agreement.
"In all instances, Kelly Group`s principal objective in establishing these joint
ventures is to play a meaningful role in capacitating our BEE partners with the
systems and resources necessary to succeed as well as effecting a continuous
transfer of technical skills. In none of our joint ventures is our BEE partner
marginalised or prevented from having an active role within the day-to-day
operations of the business," said Pieterse.
Pieterse noted that:
- Kelly Group had in several instances produced copies for STA and NE of all
financial records at its own cost.
- The BEE partners were `A` signatories on operating accounts, whereas Kelly
Group was only a `B` signatory.
- The profit distribution was clearly understood by all partners since they
were signatories of the respective shareholding agreements.
"To support its cash flow, Marula sold its invoices to a financing company as
reflected in its operating accounts, to which NE has full access. However,
since Marula sold these invoices, and therefore the right and title to them, the
financing company collected the funds from the client using its own bank
account," he said.
"Kelly Group adheres to the highest standards of governance and our commitment
to transformation has received numerous accolades and consistent top-10 rankings
of JSE-listed companies in respected business journals. We are therefore both
saddened and disgusted at any suggestion that we would exploit the names of STA
and NE to win tenders," he said.
Kelly Group is ranked a level 2 contributor to broad-based black economic
empowerment by the respected independent BEE rating company Empowerdex.
ends
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 12/03/2012 07:05:21 Produced by the JSE SENS Department.
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