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Barloworld CEO accused of conflict in potential buyout by Saudi-led consortium
Dec 2, 2024
Analyst says the CEO should be suspended pending a disciplinary hearing because of ‘a massive conflict of interests’.
A ‘mini coup’? Dominic Sewela ‘should have immediately recused himself’ and informed the board he had ‘been approached to be the B-BBEE party in the transaction’. Image: Supplied
Barloworld CEO Dominic Sewela has been accused of a conflict of interests over the involvement of a trust for his and his family’s benefit in a consortium led by Saudi Arabia’s Zahid Group, which is considering making a buyout offer for the JSE-listed group.
There is “a massive conflict of interests” and Sewela should “be suspended pending a disciplinary hearing” said one analyst.
“It’s preposterous that the first cautionary has been out for seven months and he [Sewela] has clearly had dealings with these guys and only now does it sound like an independent committee has been formed,” he added.
“The conflict of interest is impalpable at the moment.”
The analyst believes Sewela should have immediately recused himself from any negotiations and approached the board to inform it that he had been approached to be the broad-based black economic empowerment (B-BBEE) party in the transaction and is now conflicted but is interested in the opportunity and would like to pursue it.
“Now these negotiations have been running for six or seven months where he [Sewela] has clearly positioned himself as the gatekeeper of this deal. He is the key that unlocks it.
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