FOUR GROUP FIVE DIRECTORS RESIGN

EMBATTLED construction engineering company, Group Five, yesterday announced the resignation of four directors, including board chairperson Nonyameko Mandindi, with immediate effect. The group said that other nonexecutive directors who have resigned were Michael Upton, Edward Williams and Cora Fernandez. Mandindi is a professional quantity surveyor and has worked with two listed construction companies in her career. Their resignations left the group’s eightmember board hollowed out, with only four members left having to steer the ship under interim chief executive Edward Williams’ leadership. “The board wishes to thank Nonyameko, Michael, Edward and Cora for their invaluable contribution to the group since their appointments in July 2017 under challenging circumstances and takes this opportunity to wish them well for their future,” Group Five said. In March, Group Five resolved to place its companies into business rescue and had applied to the JSE to suspend trading in its shares after a number of other direct and indirect subsidiaries experienced cash flow difficulties. The financial constraints were exacerbated by the calling of guarantees in issue of $62.7 million (R898.58m) last November and $43.8m in December relating to the Kpone Gas and Oil-Fired Combined Cycle EPC power plant contract which the client terminated. In a market update last week, Group Five’s business rescue practitioners said it was very unlikely that shareholders would receive any value back on their investments. | African News Agency (ANA)