IPL
IPL
Imperial - Press Reports Regarding Imperial Fleet Services Lesotho
Imperial Holdings Limited
Registration number: 1946/021048/06
Share code: IPL
ISIN: ZAE000067211
("Imperial" or "the group")
PRESS REPORTS REGARDING IMPERIAL FLEET SERVICES LESOTHO
The directors of Imperial wish to clarify the company"s position as lessor of
vehicles to the Government of Lesotho ("GOL").
In terms of the financial lease agreement between Imperial and the GOL, the GOL
has the right to acquire leased vehicles at the end of the lease term at their
residual values from Imperial. The residual values were not intended to reflect
the market values of the vehicles, but were used in determining the monthly
lease amounts charged to the GOL
As set out and motivated in a statement by the GOL during last month, the
government has, as part its overall remuneration structure for senior employees,
established a scheme in terms of which such employees may acquire the leased
vehicles at the residual values stipulated in the lease agreements, which
resulted in the employees acquiring the vehicles at values below their market
price.
Imperial has been named in certain press reports which were critical of the
remuneration scheme as being party to such scheme. The company wishes to place
on record that the commercial transaction between itself and the GOL constituted
a normal full maintenance financial lease agreement in terms of which vehicles
were leased to the GOL and this in no way resulted in any benefit being given by
Imperial to any individuals in the Lesotho Government.
Company Secretary
RA Venter
By order of the Board
18 September 2006
BEDFORDVIEW
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 18/09/2006 04:53:39 PM Produced by the JSE SENS Department
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