Vodacom still paying ex-CEO R1 million a month
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14 February 2010
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There is more controversy over Vodacoms former CEO Allan Knott-Craig and a hefty monthly payment he allegedly receives from the cellular giant.
The Sunday Times newspaper is reporting the ex-CEO is being paid R1-million a month by the operator, 18 months after he resigned.
The newspaper article states the payments have not been disclosed to the company's shareholders, which include the South African government, Vodaphone and BEE scheme Yebo Yethu.
Insiders are calling it "money for nothing".
According to the article, Knott-Craig signed a two-year deal, and is doing little or nothing during his tenure.
It is understood the agreement was reached when Vodacom found out Telkom was planning to launch its own cellular business.
The deal, which was struck in March last year and expires in the same month in 2011, was to keep Knott-Craig from working for the competition.
According to the newspaper, Vodacom chairman Peter Moyo admits they are paying the retired CEO a retainer as part of a restraint of trade and consultancy fee.
The article goes on to state the General Secretary of the Communication Workers Union Gallent Roberts is demanding that Knott-Craig repay the money with interest.
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