In South Africa, MultiChoice recently announced the retirement of long-serving board member John James (Jim) Volkwyn. His retirement will be effective from 28 August 2024, coinciding with MultiChoice’s annual general meeting.
The announcement comes after reports from the Public Investment Corporation (PIC) expressed opposition to Volkwyn’s re-election, citing concerns about corporate governance principles. The PIC, which holds a 15% stake in MultiChoice, raised objections over Volkwyn’s substantial fees since he began his consultancy agreement with the company in 2018.
The PIC’s chairperson and deputy finance minister, David Masondo, emphasized the importance of upholding corporate governance principles, stating that consequences should exist for corporate actions that undermine these principles.
In response, MultiChoice defended Volkwyn’s consultancy agreement, highlighting the necessity of such agreements to access specialized knowledge and skills in sectors like pay TV. The company also underscored Volkwyn’s valuable expertise in addressing macroeconomic challenges and evolving consumer behaviours.
Moreover, MultiChoice clarified that the consultancy arrangements were lawfully disclosed to shareholders and complied with corporate governance requirements. The company reaffirmed its unwavering commitment to effective governance and transparency in its operations, aiming to instil confidence in stakeholders.
Additionally, MultiChoice addressed ongoing reviews of consultancy fees paid to certain board members, including former chair Imtiaz Patel and Kgomotso Moroka. The company reiterated the importance of leveraging board members’ expertise while ensuring governance effectiveness.
Furthermore, MultiChoice’s decision to retain Patel in his consultant role until October 2028 sparked controversy within the company. Questions arose regarding the timing of Patel’s resignation as chairman in light of the acquisition negotiations with Groupe Canal+. While public discussions about these matters ensued, MultiChoice focused on achieving the objectives outlined in the Canal+ deal.
MultiChoice expressed gratitude for Volkwyn’s dedicated service of over 33 years and reaffirmed its unwavering commitment to governance and transparency. This commitment aims to address concerns raised by stakeholders and ensure the effective utilization of board members’ expertise, thereby fostering trust and security.
