INVESTIGATION COMPLETED INTO ALLEGED CORPORATE GOVERNANCE ISSUES AT WESIZWE

4 August 2010
Johannesburg, 4 August 2010: Wesizwe Platinum Limited ("Wesizwe" or "the Company") today announced that its Board of Directors has accepted the final report from independent auditors, Deloitte & Touche, and the legal firm, Deneys Reitz Attorneys ("the Deloitte and Deneys Reitz reviews") following an investigation into allegations of corporate governance misdemeanours at the Company.

The Deloitte and Deneys Reitz reviews concluded that there is no evidence of fraud, material financial loss, theft or a material breach of fiduciary duty on the part of the Company`s Chief Executive Officer, Michael Solomon.

The Deloitte and Deneys Reitz reviews further confirmed there was no evidence of impropriety in the decision-making and reporting of a bonus paid to Michael Solomon and recommended to the Board that any further investigation into the matter be terminated.

During the second half of 2009, Wesizwe experienced a number of significant changes to its Board. The most notable of these was the unprocedural dismissal of the Acting Chairperson, Robert Rainey, and CEO Michael Solomon at a Board meeting in November 2009 on allegations of misconduct and corporate governance transgressions. In December 2009, both Solomon and Rainey were reinstated by shareholders at an Extraordinary General Meeting (EGM).

Dawn Mokhobo, who was appointed Chairman after the EGM, commented: "At our first Board meeting after the EGM the newly constituted Board agreed to appoint independent forensic experts to conduct an investigation into the allegations against Michael Solomon and Robert Rainey. These allegations were first highlighted in an Internal Audit report dated 25 November 2009. This was then extended into a review commissioned by the previous Board and performed by the same experts, Deloitte and Deneys Reitz, the findings of which were presented to the EGM in December 2009."

>> more

<< Go back