According to industry reports, MultiChoice’s new board chair, Elias Masilela, has announced that the company is reviewing and will likely stop controversial consultancy fees paid to certain board members.
These consulting fees have been paid to former chair Imtiaz Patel, Kgomotso Moroka, and Jim Volkwyn. Patel reportedly earned around US$1 million last year for restraint of trade and advisory support services, while Volkwyn earned US$272,695 and Moroka earned US$80,204 in consulting fees.
Masilela explained that these contracts were necessary for the company in the past, as they employed experts in their fields as board members. However, Masilela added that this type of contract is not unique to MultiChoice.
MultiChoice has also confirmed that it pays its non-executive directors annually to ensure effective governance of the group. Moroka’s consulting fees were cancelled last year after shareholders questioned their reasons, but Volkwyn continues to be paid.
Patel, one of the beneficiaries of these consultancy fees, stepped down as chairman of MultiChoice last week. The last few weeks of his tenure were controversial. MultiChoice had previously announced that Patel would step down as chairman on 1 April 2024 but later put his resignation on hold to ensure he could preside over the acquisition negotiations with French media giant Groupe Canal+.
The last-minute decision to delay Patel’s resignation has not been without its consequences. It reportedly sparked internal complaints within the company, with some suggesting it cast a shadow on Masilela’s ability to handle the Canal+ deal. MultiChoice has since clarified that Patel’s resignation will proceed after certain milestones in the Canal+ deal are achieved. In the interim, MultiChoice and Canal+ entered a cooperation agreement and announced firm intention.
