Tongaat chair Von Zeuner resigns

Sugar producer Tongaat Hulett has announced the resignation of chair Louis von Zeuner, who is stepping down after more than two-and-a-half years in the position.

Sugar producer Tongaat Hulett has announced the resignation of chair Louis von Zeuner, who is stepping down after more than two-and-a-half years in the position.

David Noko, the lead independent nonexecutive director of the group, has been appointed interim chair, with Tongaat saying in a statement on Thursday that Von Zeuner’s resignation was due to changes in his personal circumstances.

Von Zeuner was appointed in September 2019 amid a board shake-up on the sugar producer’s announcement in June that it had hired PwC to launch an investigation into suspicious accounting practices.

PwC identified 10 executives, including former CEO Peter Staude, as allegedly involved in profit inflation. The group is still trying to put the scandal behind it, and has suffered a more than 97% share price plunge over the past five years.

VON ZEUNER WILL REMAIN ON THE BOARD UNTIL THE END OF JUNE 2022 TO HELP ENSURE A SEAMLESS TRANSITION

Tongaat’s shares have more than halved so far in 2022, and the KwaZulu-Natal-based group said in April that sugar production had fallen 9% in its year to end-March, hit by a maintenance backlog and July 2021’s civil unrest. It is also counting the costs of recent flooding in the province and looking to tap shareholders for R4bn-R5bn.

Von Zeuner, a former deputy group CEO at Absa, will remain on the board until the end of June 2022 to help ensure a seamless transition.

Noko has been lead nonexecutive director since July 2020 and is a former executive vicepresident at AngloGold Ashanti, former CEO of Air Chefs, and former MD and CEO of De Beers.

He served on the boards of several prominent companies, is a member of the Institute of Directors and chair of the Council of the University of the Free State, Tongaat said on Thursday.

“On behalf of the board and executive team of Tongaat Hulett, we wish to sincerely thank Mr von Zeuner for his exceptional leadership, guidance and support during the difficult time that Tongaat faced when he took over the role as chair,” CEO Gavin Hudson said in a statement.

By the JSE’s close on Thursday, Tongaat’s shares had fallen 3.64% to R2.65.