Executive chairman of Hosken Consolidated Investments (HCI), Marcel Golding, has reportedly been suspended over a R24 million deal with Ellies Holdings.
This is according to Bloomberg, citing court documents which reported that Golding purchased $2.2 million worth of shares in Ellies, allegedly without authorisation.
The deal by Golding was apparently on behalf of e.tv owner, Sabido Investments, and was done without the authority and mandate of the HCI board.
Sabido Investments is a South African media group with holdings in a variety of broadcasting, content and production businesses..
HCI announced on Wednesday (22 October) that Golding had been suspended while the group conducted an enquiry into “certain allegations of gross misconduct” by him.
HCI told shareholders that, while serious in nature, the alleged misconduct of Golding is “unlikely to adversely affect the operations of the Company, or materially affect its financial performance”.
Golding was seeking to overturn his suspension, which is being opposed by HCI.
Disciplinary proceedings against Golding have been instituted and the process is scheduled to proceed on Monday 27 October 2014.