Aziz Hartley
HOSKEN Consolidated Investment chief executive John Copelyn has written a candid letter to staff at e.tv and eNCA about how his business relationship had fallen apart with company chairman Marcel Golding and why the company had to act against Golding.
Golding resigned in the face of a disciplinary hearing into gross misconduct.
His decision to invest R24 million of shareholder money in a company which HCI subsidiary and e.tv owners Sabido did business with, had been the sole reason behind Golding’s suspension, Copelyn told staff at eNCA and e.tv yesterday. Golding resigned on Monday, the same day the Labour Court turned down his application to stop the hearing. HCI non-executive director and former minister Barbara Hogan resigned on the same day.
Golding had claimed his suspension was because of his resistance to what he called political interference by HCI’s major shareholder, the SA Clothing and Textile Workers Union (Sactwu), in the news content at e.tv. Sactwu had dismissed his claim as untrue.
Copelyn, as chairman of Sabido, addressed staff in a four-page letter yesterday. He said HCI financial director Kevin Govender would be acting chief executive of Sabido in place of Golding.
Golding was approached for his response and sent a copy of the letter, but by deadline he had not replied.
Copelyn wrote in his letter that he and Golding had worked together for a very long time and built several successful businesses together.
Copelyn, who was a Sactwu leader for about two decades, said the company had Sactwu’s support during tough times and had bailed them out when they were in trouble.
“Last year, we agreed to a share swop where Sactwu swopped R1.5 billion worth of HCI shares to invest directly in Sabido. Its commitment to our media business has been unbelievably strong from the date at which we first bid for e.tv’s licence until today. When Marcel sought to buy the media business from HCI over the last year, Sactwu was the party he approached to be his media partner in this bid. The truth of the matter is that Sactwu would have agreed to this partnership had it not been for its disillusionment when advised of the (Golding’s) secret share dealings,” Copelyn wrote.
He said that despite Golding’s contention, “I want to assure you that there was only one reason for Marcel’s suspension: his decision to spend R24m of shareholder money on investing in a supplier retail company with whom we do business.
“Marcel’s trades were concealed from the company, its board who had to authorise the trades, and shareholders of Sabido – who likewise had to authorise such a purchase before Marcel was entitled to proceed. The shares were paid for through a private arrangement Marcel made with a broker and were not registered in our name. Instead they were held in the name of a banking institution with an understanding they would later be transferred to the name of a party, the identity of whom Marcel would subsequently disclose to them, but to date has not.”
He said Golding made a “serious blunder when he accumulated shares in another company without any financial approval”.
“It was a serious mistake. Worse still, he has to date made no apology for this.”
Copelyn also addressed staff about allegations of editorial interference. “We’ve built this channel as our contribution to building a lasting democracy, free of interference, intimidation or attempts to prejudice its independence. Nothing has ever compromised that, and nothing ever will while we own it,” he said.
“The principles of independence and integrity are central to e.tv’s and eNCA’s success and are not up for negotiation.”