Foskor's HR executive detained for firearm threats in boardroom incident

Banele Ginidza

The State-owned phosphate producer Foskor has confirmed that its vice president for human resources and corporate affairs, Vincent Matlala, has been arrested for threatening a colleague with a firearm at the company's head offices in Midrand.

This alarming event, has ignited discussions surrounding the potential corruption undercurrents within the firm, especially in light of recent developments tied to an R800 million bonus employee share scheme.

It also comes as Foskor is still trying to recover from shock after Sifiso Mncube, a senior procurement executive at Foskor in Richards Bay, was gunned down by unknown assailants in his car in the suburb of Meer-en-See in Richards Bay in February 2024.

In this new case, sources within Foskor have suggested that the boardroom incident stemmed from a dispute over kickbacks, with Matlala reportedly embroiled in controversies involving procurement practices in his department.

Matlala was arrested two weeks ago inside the group's boardroom, a place typically reserved for strategy and decision-making, after threatening a Rewards Specialist executive with a gun in an undisclosed dispute.

"Each department has its own procurement needs. Corporate Affairs has a massive budget of R10 million and even higher and it is quite known that Matlala gets kickbacks from the various suppliers that he deals with," a source said.

"It was surprising though that he goes around threatening people with a gun. He was arrested right inside the boardroom.

"This saga takes on a deeper significance given Matlala's role in revitalising the long-troubled Kopano Foskor Employee Share Ownership Plan (ESOP). The failed scheme, which left many employees disillusioned, was supposed to provide significant financial returns when the shares matured in March 2019.

Following that disappointment, employees resorted to strikes, demanding payouts that were unmet, resulting in only a R7 000 "ex gratia" payment to settle the situation.

With Foskor reportedly returning to profitability and settling its debts with the Industrial Development Corporation (IDC), there is burgeoning interest in a potential JSE listing.

This revitalisation of the Kopano ESOP could lead to an employee share scheme reminiscent of MTN's acclaimed Zenzele Futhi programme.

However, the uncertainty surrounding Matlala's alleged behaviour raises questions about fund management and ethical oversight.

"There are questions about how money is spent and if allocated funds for projects he oversees are used effectively to benefit not only the company but the employees," another source said.

"Matlala is responsible for designing and paying out employee benefits, which makes this incident all the more troubling. So, it’s only reasonable to believe that the fight between the victim and Matlala is about how benefits are paid out and maybe redirected for personal gain. If this is proven to be true, it would not only undermine the trust staff have on the leadership but it can even affect the company’s place to the IDC and even community's."

The South African Police Service was yet to comment on Matlala's arrest and what charges he was facing or when the next hearing for his bail application would be.

However, Foskor Group manager for corporate affairs, Vhontsia Ramashia, confirmed Matlala's arrest though she would not be drawn to comment on circumstances leading to the incident.

"We are aware of the allegations involving Foskor VP of Human Capital and Corporate Affairs, Mr. Vincent Matlala. The matter was formally reported to us and is currently under police investigation. We are cooperating fully with the relevant authorities," Ramashia said.

Ramashia said given the sensitive nature of the matter, Foskor would not be addressing individual queries at this stage.

"Our decision not to respond to individual questions should not be interpreted as confirmation, denial, or admission of any," she said.

Foskor is a South African phosphate producer and fertilizer manufacturer. It mines and beneficiates phosphate rock at Phalaborwa in Limpopo, from where it is carried by rail to the production facility in Richards Bay in KwaZulu-Natal.

The IDC, which holds about more than 60% of Foskor, is working on floating the company on the JSE after the phosphate producer reported its first profit since 2012.

In the IDC’s financial year to 31 March 2023, Foskor made a R2.8bn profit, of which R1.5bn was a reversal of impairments made in the previous year.

The IDC has been seeking an exit, or at least a dilution of its equity exposure, for many years. Late in its 2021/22 financial year, the IDC attempted a trade sale of Foskor, but was unable to conclude it.

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