Power struggle may have led to Mdwaba suspension

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Mthunzi Mdwaba and Grenville Wilson - a source says they have fallen out

Was the suspension of IT industry personality Mthunzi Mdwaba as deputy CEO and director of JSE-listed Kelly Group part of a power struggle between him and the company’s CEO?

TechCentral has learnt that Mdwaba’s suspension may have been the result of a battle with Kelly’s CEO, Grenville Wilson.

Mdwaba is also now the subject of some sort of “investigation”.

A source close to the situation says Wilson was expected to retire soon, and the board had pegged Mdwaba as his successor.

The group put out a terse statement to shareholders on Wednesday afternoon saying Mdwaba had been removed from the board.

However, the statement indicated that he was still in the employ of the group. Mdwaba is CEO of Kelly’s technology training subsidiary, Torque IT.

Kelly Group CEO Grenville Wilson was evasive when phoned for comment on Wednesday. He refused to say why Mdwaba had been removed from the board, saying it was a board issue.

“I can’t comment beyond what is in the Sens statement,” he said.

It appears Mdwaba and Wilson had a falling out over the plans the former had for the business.

The source, who asked to remain unnamed given the sensitive nature of the situation, says succession discussions with the board had started in early March, and Mdwaba was expected to take the reins on 1 October.

However, after the two men apparently fell out, Wilson did not seem as keen to have Mdwaba take over the business and kept him at arm’s length.

In a lengthy e-mail to Wilson, shown to TechCentral, Mdwaba complains about being locked out of important decisions, which he felt he should have been party to because of the board’s decision to promote him to CEO when Wilson retired.

The source also says Mdwaba has yet to receive any details of why he has been suspended. Nor has he received any details of why he is being investigated.

It is unclear why the board approved Mdwaba’s suspension. Kelly chairman Moss Ngoasheng is in New York and unavailable for comment.

Neither Mdwaba nor Wilson could be reached for comment on the matter. Wilson has taken leave and will only return to the office on 7 September.

Mdwaba joined Kelly Group in August 2008 when the JSE-listed company bought Torque IT for R38m and was appointed to the board three months later.

Well-known in the IT industry, Mdwaba has served for various technology associations, including Business Unity SA and the Black IT Forum.

He is also a member of the steering committee tasked with crafting the black economic empowerment charter that will govern the technology industry.  — Candice Jones, TechCentral



  • Not Surprised

    Mthunzi should’ve known better.

    No one challenges Grenville Wilson.

    For a “people’s organisation” the turnover of executives beggars belief. It’s long overdue that Wilson has a good look in the mirror and recognises his dismal failure at the helm, moves on and stops wasting shareholders money on seemingly endless litigation and stupid ventures like K-log and Talentocean.

    I’ll bet this will get a whole lot more interesting.

  • Less surprised

    Funny how grudges take you hey ex-kelly “Not Surprised”?

    New initiatives are geared to ensure Kelly’s survival – old dinosaurs need to be gotten rid of (no doubt like yourself).

    That said, GW certainly needs to take a closer look at how the top echelon conduct their affairs. The new iniatives are largely a part of MM’s strategy for change so this time it’s GW who’s the dinosaur.

    The recruitment industry is getting old and tired, K-Log and TalentOcean are here to shake things up. No doubt this will get interesting – I hope MM comes up smiling :)
    Time for change!

  • Surprised

    Grenville should just take a good look at what’s actually being done and if the facts by staff/management is really as true as they say it is.

    Ventures are only being made stupid by the people actually doing the work, not the idea behind it.

    Say what you want, Grenville has done more for the Kelly Group than any other. I hope he shows all these naysayers the middle finger and makes even more of a success of his career as CEO.

  • The Observer

    I couldn’t agree with ‘Not Surprised’ more.

    Whatever pushed the previous Deputy CE out of Kelly. Grenville may have done much for Kelly, but no one is indispensible

  • BLACKMAN

    Is Grenville not managing Kelly like his Farm? What is he protecting now that he seems to want to rule for ever? It will be interesting for industry to start asking questions, on his past & shady underworld.
    The board full of his friends including the Broeder Bond member : Peet van der Walt. Now how can they transform with such a past or present beliefs (culture)
    COPE member Moss, what do they have on him that he can’t objectively lead? With Nomco dawning, is he not buying votes at the expense of Mthunzi?
    where have you everseen, a Chairman travelling oversees after suspending a board member / Deputy CEO, then the CEO takes leave until 7th September.
    IF THEY LIFETED THE SUSPENSION, WHAT WAS THE CHARGE? Grenville, is anti transformation, he want himseldf as the CEO, with a Deputy CEO that is a token. Kelly Group Board, must prove the industry wrong. hopefully they have the intellectual capacity to execute such a task.
    Who is Elias Monage. Word in the street, is that his education is suspect, with no capacity to independently make decisions.

  • change agent

    It is a pity the CEO’s in SA outstay their welcome. There is a season for everything under the sun – a time to go and a time to stay – BOTH of these fellows need to go – they have outstayed their welcome.

    The world is moving on – and it is a bright happy world – where working in unity MUST be the the order of the day – none of these gentlemen have a reputation for this.

    I seriously believe that if KELLY do not realign their attitude they will lose their shareholders and they exist simply by default right now.

    RESIGN – the entire board and begin again -

  • Sceptic

    Methinks there are a lot of sour grapes, reading between the lines. Possibly some ex-Kelly employees? GW sets high standards for both himself and his team. Those who can’t stand the heat should get out of the kitchen, I say.
    As for Blackman, I’m wondering what axe you have to grind? To imply that GW has a “past” and a “shady underworld” is quite ridiculous. The man is as honest as the day is long, and his past is an open book. Funny how people who have their own dirty secrets like to blow smoke in order to hide their own failings and imperfections. I have no doubt the truth will out in due course and The Kelly Group will be the better for it.

  • No smoke without fire

    I smell a lot of sour grapes about? Some disgruntled ex-Kelly emplyees maybe? GW sets high standards for himself and his team. If you can’t stand the heat, get out of the kitchen, I say.
    As for Blackman, I’m wondering what axe you have to grind. To imply that GW has “past” and a “shady underworld” is quite ridiculous. You have been watching too many Mafia movies. GW is as honest as the day is long and his past is an open book. His history at Avis Southern Africa speaks for itself and he has played a pivotal role in putting the Kelly Group back on the map. I have no doubt that the truth will out in due course and most of the rumours and untruths circulating will be putb to rest.

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