Adding to the wealth of content that has driven a public spat between Ketso Gordhan and the PPC Board of Directors, Gordhan has added a voice of caution to the perspectives being sewn together for PPC’s shareholders. Ketso’s statement below outlines a call to shareholders to vote in the best interests of PPC’s long-term strategic success – leaving us with a sobering perspective on the goings-on at the top of the cement supplier’s chain. – LF
Statement from Ketso Gordhan
The PPC Board’s decision to release a series of paid advertisements over the past few days when there is an opportunity to address shareholders directly at the company’s annual results announcement on Tuesday, 18 November, is disappointing both in form and content.
Instead of the Board communicating to shareholders why it is the best steward of shareholders’ interests, it is spending money on misrepresenting and trivialising my reasons for resigning from PPC. I would have thought a Board that is aware of its duty would see the shareholders’ meeting on 8 December as an opportunity to focus on convincing shareholders that, notwithstanding creating a leadership vacuum that wiped R3 billion off the company’s market capitalisation, this is the best possible Board to deliver on PPC’s Africa strategy, which is a necessity for creating shareholder value.
While the Board depicts the concerns I raised with them as petty and egotistical, everything I have done at PPC is evidence of the opposite. The concerns I raised with the Board went to the heart of the culture, performance and strategy we as a management team were driving at PPC.
My ambition is not to join the PPC boardroom playpen in trivialising the purpose of the shareholders meeting but to urge shareholders to focus on corporate leadership and value creation for all stakeholders.
In summary:
- As part of our African expansion plans, we had negotiated with the approval of the Board, a very lucrative funding deal that would bolster the balance sheet and support the expansion strategy. However, a senior finance executive undermined the funding deal to such an extent that the funders wanted to terminate all interactions with PPC.
- The executive in question created a culture of fear and recrimination amongst the finance team and as a consequence of her management style, created a work environment that was so dysfunctional it became a hindrance to the teams that were putting together the Africa expansion projects.
- I pushed for an open plan office structure to improve executive accessibility and to bring down head office costs but the executive in question refused to give up her office. The executive demonstrated that perks matter more than creating an equitable and cost conscious corporate culture.
At the PPC results announcement, shareholders’ eyes and ears will be straining for solutions to the failures in leadership and corporate culture. In particular:
- Why is this Board the best combination to provide the strong stewardship required on behalf of its shareholders?
- Why is this Board the best combination in terms of its understanding the challenges faced by the company and the industry?
- Why is this Board the best combination to oversee an industrial relations environment that promotes productivity and efficiency?
- Why is this board the best combination to manage PPC’s key commercial relationships?
- Why is this Board the best combination to see through the ambitious Africa strategy that has been established?
I urge shareholders to ask the difficult questions and do what’s best for their company by putting in place a Board that has the experience, stewardship and support of management and employees to drive a complex strategy and unlock the significant value within PPC. A Board that is capable of converting its playpen back into a Boardroom.
For more on Ketso Gordhan, PPC and the build-up to this statement:
PPC accuses Ketso Gordhan of defamation, disregard of shareholders
Ketso Gordhan: PPC’s wanna-be-back CEO is supported where it matters
PPC Board vs Ketso Gordhan – ex-CEO asks shareholders for job back
PPC CEO, Ketso Gordhan quits after clash with board, shares slump
