EXXARO Resources said a meeting with the National Union of Mineworkers (NUM) scheduled for today regarding its “unfounded allegations” failed to take place.
This was after the NUM issued a statement earlier on Monday in which it rejected the recent appointment of Ben Magara as the coal miner’s CEO, effective April 1. In a press statement the union fired off a number of accusations including its view Exxaro’s board orchestrated the resignation of its former CEO, Nombasa Tsengwa.
The union also said Magara had a conflict of interest as a non-executive director of Exxaro and of shipping and logistics company Grindrod (since relinquished). Exxaro had awarded contracts to Grindrod at Magara’s behest, it said.
“We were due to meet with the NUM Highveld regional leadership on Monday 17, but they did not attend the meeting,” said an Exxaro spokesperson on behalf of the company’s board. “This is a pity as it would have provided an opportunity to deal with the unfounded allegations raise by the regional leadership,” the spokesperson said.
Exxaro also said an independent investigation into the alleged activities of its former head of coal Kgabi Masia by law firm Bowmans was continuing “and will be concluded as quickly as thoroughness allows”.
“We have repeatedly invited NUM to present any credible evidence they may have of the independent investigators – but they have not done so,” the spokesperson said. “The company’s actions will be informed by the outcome of the investigation, and these will be communicated in due course.”
Tsengwa resigned in February over the handling of a probe into allegations over her conduct which included claims related to “workplace conduct and governance practice”. Law firm ENS was enlisted to run an independent investigation, but Tsengwa said it amounted to “a predetermined outcome, which I refuse to subject myself further to”.
Magara’s appointment was met with applause and cheers when it was announced on March 13 during the firm’s full year results presentation.
His first action was to recommit Exxaro towards its diversification strategy, saying in a statement he would use the group’s coal production “to expand our portfolio towards the critical low-carbon minerals essential for the future”.
But the NUM is sceptical of Magara. It said the Bowman’s investigation into Masia would not “be a fair outcome” while Magara was “at the helm”, adding that: “He’ll never go against a company he is also an active director of”, – unaware Magara had resigned from Grindrod.
