Johannesburg - Hosken Consolidated Investments, a South African black-empowerment investment company, suspended executive chairman Marcel Golding pending a disciplinary hearing into allegations of gross misconduct.
The charges were “found to be of a very serious nature warranting disciplinary action,” the Cape Town-based company said in a statement today.
Golding has started legal proceedings to block his suspension and the hearing which Hosken will fight, the company said.
Hosken is the largest investor in casino operator Tsogo Sun and owns controlling stakes in a bus service, independent broadcaster e.tv and a bingo centre operator.
The company’s largest shareholder is the SACTWU investment group, a financial vehicle for the South African Clothing and Textile Workers Union.
South Africa has black economic empowerment legislation to make up for discrimination during the apartheid era where non- white South Africans were hindered from participating in the economy.
The laws include compelling of the sale of stakes in companies to non-white South Africans.
Hosken shares have gained 9 percent this year, valuing the company at 18 billion rand. - Bloomberg News