Kelly Group dismisses fronting allegations

Marula Staffing (Kelly Group: 49%, NE: 51%) and Workforce Management (Kelly Group: 49%, STA: 51%) are joint venture enterprise development operations established by Kelly Group. Workforce Management is currently under liquidation.

Among the allegations levelled at Kelly Group are that they controlled the bank accounts of the joint ventures, decided how profits should be split and denied its partners access to bank account statements and financial records.

Kelly Group chief operating officer Ferdie Pieterse said each of the group's joint venture partnerships were governed by a formal shareholders' agreement. "In all instances, Kelly Group's principal objective in establishing these joint ventures is to play a meaningful role in capacitating our BEE partners with the systems and resources necessary to succeed as well as effecting a continuous transfer of technical skills. In none of our joint ventures is our BEE partner marginalised or prevented from having an active role within the day-to-day operations of the business," said Pieterse.

Pieterse noted that:

• Kelly Group had in several instances produced copies for STA and NE of all financial records at its own cost.
  
• The BEE partners were 'A' signatories on operating accounts, whereas Kelly Group was only a 'B' signatory.
  
• The profit distribution was clearly understood by all partners since they were signatories of the respective shareholding agreements.

"To support its cash flow, Marula sold its invoices to a financing company as reflected in its operating accounts, to which NE has full access. However, since Marula sold these invoices, and therefore the right and title to them, the financing company collected the funds from the client using its own bank account," he said.

"Kelly Group adheres to the highest standards of governance and our commitment to transformation has received numerous accolades and consistent top-10 rankings of JSE-listed companies in respected business journals. We are therefore both saddened and disgusted at any suggestion that we would exploit the names of STA and NE to win tenders," he said.

Kelly Group is ranked a level 2 contributor to broad-based black economic empowerment by the respected independent BEE rating c.