The South African Public Investment Corporation (PIC) has vowed to block the re-election of a MultiChoice board member over questionable consultancy fees.
According to PIC Jim Volkwyn, the board member in question, has received over R10 million in fees since his agreement with the media giant started in 2018, which is in breach of corporate governance principles.
The agreement is only supposed to expire in 2028. However, the PIC — which owns a 15% stake in MultiChoice — believes a renewal of Volkwyn’s consultancy contract at the upcoming AGM would raise concerns about the company’s remuneration dealings.
“There have to be consequences where corporates are tone deaf and create structures that are used to undermine the principles of corporate governance,” PIC chairperson and deputy finance minister David Masondo told the (South African) Times.
According to MultiChoice, these consultancy agreements are necessary when a company needs knowledge and skills in a specialist or niche sector such as pay-TV. Such agreements are terminated if redundant.
However, having been a former CEO of Naspers’ video entertainment division when it still owned MultiChoice, the company believes Volkwyn still has a lot to offer from an advisory position.
