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Allied Timbers, Kanyekanye head for clash

Business
Allied Timbers Zimbabwe (ATZ) and its former group chief executive officer, Joseph Kanyekanye, are headed for a clash as it emerged yesterday that the integrated timber concern was accused of violating a mutual separation agreement signed last year.

Allied Timbers Zimbabwe (ATZ) and its former group chief executive officer, Joseph Kanyekanye, are headed for a clash as it emerged yesterday that the integrated timber concern was accused of violating a mutual separation agreement signed last year.

BY BUSINESS REPORTER

Kanyekanye left the integrated timber concern last year after 14 years at the helm.

At the centre of the dispute are allegations by Kanyekanye’s lawyers that some members within the current ATZ board or management seemed to be leaking information casting aspersions on the conduct of Kanyekanye during his tenure as group CEO of the parastatal notwithstanding the terms of the mutual termination of employment agreement of February 2015.

JOSEPH-KANYEKANYE-2 Joseph Kanyekanye.

The lawyers allege breach of the agreement and have warned that their client might be forced to weigh his options.

Kanyekanye refused to shed light on the contents of the agreement, saying it was a confidential document referring further questions to his lawyer, Alex Mambosasa.

Mambosasa told NewsDay: “When parties enter into an agreement, they become bound by terms, thereof, and naturally each party expects the other to act honourably. ATZ has in more than one instance violated the Mutual Termination Agreement it signed with my client. In the circumstances, client is left with no option, but to seek redress through the courts.”

The lawyers said the leaking of confidential information had the effect of undermining the mutual separation agreement the group entered into with Kanyekanye to bring finality to their labour dispute. The dispute has since spilled into the Labour Court after the current board reneged on earlier undertakings made by the Emmanuel Fundira-led board.

Fundira had in December 2014 suspended Kanyekanye to facilitate investigations into allegations of corruption, failure to observe operating procedures and gross insubordination. Both parties were to later hammer out a mutual settlement after the ATZ board could not sustain the allegations for lack of evidence.

A statement issued by Fundira last year said the parties had “amicably and mutually” resolved to terminate the contract of employment of Kanyekanye as group chief executive officer of Allied Timbers Zimbabwe effective February 16, 2015.

According to documents gleaned from ATZ insiders, both parties agreed to observe strict confidentiality on the matter and to release the employee from all manner of action which might arise after the signing of the pact.

“The parties consider the terms and conditions of this agreement and the basis for any claims, demands or negotiations giving rise to this agreement to be strictly confidential unless required by a subpoena, court order or other request for information to which a party is required to respond, but the parties may disclose this agreement to their attorney, tax accountants or Zimbabwe Revenue Authority,” the agreement read in part.

“The parties expressly agree that if anyone inquires about this agreement or the circumstances underlying it, the parties must respond by stating only in substance: ‘the matter has been resolved amicably’”.

But ATZ insiders accused Kanyekanye of taking the matter to the public by instituting a court application.

“Prior to the court application, no one from Allied Timbers had made reference to the matter. Who can be accused to have gone public in this circumstance?” an ATZ executive asked.

“I don’t think it’s fair for him or us, we have a new CEO.”

ATZ spokesperson Veronica Gutu told NewsDay: “No comment.”