Special Consultancy Fees for MultiChoice Board Face Chop

New MultiChoice board chair Elias Masilela says that controversial consultancy fees paid to certain members of the MultiChoice board are under review — and are likely to be stopped.

“These were legacy contracts that were necessary for the company because we know that when you employ board members, you employ people who are experts in their own fields as it may be quicker to get an answer from them on a technical aspect rather than getting that from the outside [which] can take longer,” said Masilela.

Members of the board who have been paid these consulting fees include former chair Imtiaz Patel, Kgomotso Moroka, and Jim Volkwyn, reports the Business Times.

 

Patel reportedly earned about R20 million last year for restraint of trade and “provision of various strategic and advisory support services to the group at a global level.”

Volkwyn reportedly earned R5.1 million in consulting fees, while Moroka earned R1.5 million. Moroka’s consulting fees were cancelled last year after shareholders questioned the reasons behind them, but Volkwyn continues to be paid.

Masilela said this type of contract is not unique to MultiChoice, while the company added that it pays its non-executive directors annually, rather than per meeting, to ensure “their ongoing responsibility to ensure effective governance of the group” is recognised.

Patel steps down

One of the beneficiaries of these consultancy fees, former MultiChoice chairman Imtiaz Patel, stepped down with immediate effect last week.

The last few weeks of his tenure were controversial.

MultiChoice had previously indicated that Patel would step down as chairman on 1 April 2024 and would remain in his consultant role until October 2028.

However, on 2 April 2024, MultiChoice announced that Patel’s resignation as chairman had been put on hold to ensure he could preside over the acquisition negotiations with French media giant Groupe Canal+.

The last-minute decision to keep Patel in charge was reportedly controversial within the company, with the Business Times claiming that there were internal complaints about the decision.

The main complaint about the decision was that it made Masilela look like he was not competent enough to handle the Canal+ deal.

While Patel had refused to comment — instead referring queries to MultiChoice — Masilela said he supported the decision.

MultiChoice said it was always the plan for Patel to step down after certain milestones in the Canal+ deal were met.

Since the decision to keep Patel on, MultiChoice and Canal+ entered into a cooperation agreement on 7 April 2024 and issued an announcement of firm intention the following day.

April 28, 2024