The Colors Group, one of the largest fruit exporters in South Africa, has put recent upheavals behind it and says it is fast regaining its position as one of the leading names in the country’s vibrant fruit industry.
The Farmsecure Group has acquired 34 per cent of the Colors Group and on 25 January a new board was appointed. Each member of the board represents a “key pillar of Colors’ business strengths and its partnership benefits with Farmsecure”.
Board members include: Riaan Van Wyk, ceo and founding member; Ian Carstens, executive director for farming and founding member; Cecil Brummer, md of Sun Citrus responsible for packhouses; Jerome Yazbek, ceo of the Farmsecure Group; and Eugene Yazbek non-executive chairman of the Farmsecure group and non-executive chairman of the board.
The board said 2010 marked a challenging year for the Colors Group, its business units and staff and saw the group “admirably overcome numerous difficulties presented by management disruptions” and the departure of a number of its board members and executive staff to establish a rival company.
One of these disruptions was the removal of Riaan Van Wyk from his position as ceo of the Colors Group by the now departed board members and executive staff.
The new Colors board recently appointed Professor Barney Jordaan to conduct an independent enquiry into the process and circumstances which led to the removal of Van Wyk.
In a statement the company said: “The board reviewed the results of this enquiry at a board meeting on 26 January 2011 and unanimously concluded that there were no legitimate reasons for Van Wyk's removal. They did however question the ethical intent and judiciary conduct of the directors and management responsible for Van Wyk’s removal and are currently seeking legal counsel on the matter.”
The board said it therefore exonerated Van Wyk and “regrets and apologises” for the actions of the previous board, “which have caused both Colors and Van Wyk much damage”. The board reinstated Van Wyk in his previous position of ceo of the Colors Group with immediate effect.
The board reiterated the need to retain its present business structure, which constitutes three essential segments: marketing, farming and packhouses. Carstens will manage the farms in collaboration with Farmsecure. It is envisaged that the management of packhouses will also have a different focus, and in this regard Brummer will assist by working closely with Van Wyk and Carstens to find and implement an appropriate management structure and reporting line. Finalisation of this structure will be reached soon and in the interim the board will meet on a monthly basis.
“Fourteen years after its humble beginnings, Colors is still a leader in the market and is eternally thankful for the dedication and loyalty of its staff,” said Eugene Yazbek, non-executive chairman on the Colors Group.
