Spar has appointed Mike Bosman as chair, replacing Graham O’Connor who stepped down after allegations against the wholesaler.
O’Connor remains on the board.
Bosman is chair of Spur Corporation and of Vinimark Trading, the largest independent wine distribution company in SA. He is also a nonexecutive director of food group AVI, telecom giant MTN and tech firm EOH.
Spar said: “Bosman is expected to bring strong leadership and also contribute entrepreneurship, finance, legal and governance skills to the board.”
O’Connor stepped down a week ago. His independence was called into question by Business Day’s sister publication, Financial Mail, due to his family’s extensive business interests with Spar and because he was once CEO of the group.
The King IV code of governance suggests a three-year break between the two roles, while O’Connor went straight from one to the other.
The retail group has received sustained media coverage after a set of legal battles with the three Giannacopoulus brothers, who own more than 40 Spar and Tops liquor stores that Spar had attempted to take control of.
Last week, the brothers laid a criminal complaint of fraud against O’Connor, CEO Brett Botten and the head of Spar’s largest division, Desmond Borrageiro, saying they had misrepresented facts in legal battles before two high courts.
Spar also faced negative coverage after the leaking of an investigation report prepared by lawyers Harris Nupen Molebatsi (HNM) in response to allegations of unfairness towards a few black retailers.
Business Day highlighted two loans detailed in the report, both described as a “fiction”.
Spar has said: “The board takes allegations of fictitious and fraudulent loans extremely seriously and is seeking legal opinion.” The group said “it wishes to assure shareholders that this was an isolated matter and is neither Spar’s accounting policy nor practice”.
Spar also denied any allegations of discrimination against black retailers. Much of the HNM report does find in favour of Spar and dismisses allegations of favouritism and unfairness.
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