| Mon 4 Mar 2002, 0:00 | | Drd Responds To Media Report Of Ceo's Deportation |
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Durban Roodepoort Deep, Limited
(Incorporated in the Republic of South Africa)
(Registration number 1895/000926/06)
(Share code: DUR)
(ISIN: ZAE 000015079)
(ARBN number 086 277 616)
(NASDAQ Trading Symbol: DROOY)
("DRD" or "the Company")
DRD RESPONDS TO MEDIA REPORT OF CEO'S DEPORTATION
Contrary to a report in today's City Press newspaper (03-03-2002), Durban
Roodepoort Deep, Limited's Chairman and Chief Executive Officer, Mark
Wellesley-Wood, has not been served with deportation orders and ordered out
of South Africa.
Wellesley-Wood left the country voluntarily on Thursday for his home in the
UK, to visit his family and to attend to business.
DRD's attorneys, Bowman Gilfillan, were informed in a telephone call from a
senior official in the Department of Home Affairs on Friday that Wellesley-
Wood had been prohibited from re-entering South Africa.
No reasons were given.
DRD's attorneys will seek urgent confirmation of - and the reasons for - the
prohibition from the Director-General of Home Affairs tomorrow (04-03-2002).
Wellesley-Wood said from London today (03-03-2002): "I remain optimistic
that this situation can be resolved satisfactorily. Litigation being
instituted by DRD in South Africa against various parties is imminent and it
is very important that I am present in the country for this."
Wellesley-Wood joined the DRD board in May 2000 as non-executive chairman
with a specific brief to improve corporate governance. By August 2000 he had
established a special committee, comprised of executive and non-executive
directors as well as legal and auditing representatives, to investigate the
performance of certain DRD investments, including those in Australia.
Deloitte and Touche was appointed to investigate all corporate governance
practices and procedures, and make recommendations for improvements.
In November 2000, following the resignations of DRD's Chief Executive
Officer and Finance Director, Wellesley-Wood necessarily took over as acting
CEO, spearheading investigations into a range of irregularities that had
come to light. He was subsequently confirmed as CEO in April 2001.
DRD's operating and financial performance has turned around since Wellesley-
Wood took over:
From a loss of US$4 million in March 2001, the company has reported profits
for the last three quarters. In the December quarter net cash operating
profit was US$13 million.
Cash operating costs have dropped from US$240 per ounce to US$185 per ounce
during the same period.
The share price, which hit a low of R4.50 in 2000, is now R32.
Market capitalisation has risen from R550 million to R5 200 million.
On 23 January 2001, following Wellesley-Wood's appointment as CEO, DRD wrote
to the Department of Home Affairs to enquire about his work permit/visa
requirements. The company was advised in a letter dated 31 January 2001,
signed by a senior official on behalf of the Director General, that a work
permit was not required and that Wellesley-Wood's British passport exempted
him from visa requirements.
The letter went on to say: "On arrival in South Africa, Mr Wellesley-Wood
must clearly indicate to the immigration officer that he will, on a regular
basis, visit South Africa to attend meetings and act as Chief Executive
Officer."
Wellesley-Wood therefore continued to commute regularly between his home in
the UK and DRD's South African head office, using only his British passport.
In a letter dated 16 January this year, the Department of Home affairs
advised DRD that Wellesley-Wood now required a work permit and his attorneys
lodged his application with the South African High Commission in London on 1
February. He was issued with a letter by the High Commission, permitting him
to enter South Africa for holiday and business purposes while his
application was being considered.
Queries: James Duncan 27 11 82 892 8052 (mobile)
Charmane Russell 27 11 82 372 5816 (mobile)
Johannesburg
4 March 2002
Sponsor
Standard Corporate & Merchant Bank
(A division of The Standard Bank of South Africa Limited)
(Registration number 1962/000738/06)
