News / National
Pick n Pay faces probe over alleged racism, forex looting
20 Aug 2024 at 16:16hrs | Views
An investigation has been launched by the National Employment Council (NEC) for the Commercial Sectors in Zimbabwe into allegations of racism, foreign currency looting, and unfair labour practices at TM Pick n Pay Zimbabwe, a subsidiary of Meikles Limited, Nehanda Radio reported.
The allegations, which have sparked widespread concern, centre around the company's Managing Director, Malcolm Mycroft, and a fellow South African executive, Walter Stephens.
According to sources, Mycroft and Stephens have been awarding themselves inflated salaries, with Stephens allegedly earning a monthly salary of US$20,000 and Mycroft reportedly receiving US$45,000 per month, plus an annual bonus of US$150,000.
In contrast, the lowest-paid worker at the company receives a mere ZWG 5,000 (US$230).
The allegations have raised concerns about potential foreign currency looting, money laundering and unfair labour practices, with employees calling for an investigation into the matter.
Accordingly, the NEC has begun to investigate the matter relating to the dispute between worker and Pick n Pay top executives.
The employment rights organisation last week started by requesting Meikles recent wage bills, dividend payments, annual reports, quarterly reports, balance sheets and income statements.
The investigators are also seeking information on executive compensation and benefits.
"The investigation is underway and NEC is leaving no stone unturned," a source close to the investigation confirmed.
"By requesting detailed financial information, including wage bills, dividend payments, and executive compensation, they are trying to get a clear picture of the company's financial dealings and whether there's been any unfair treatment of workers and potential foreign currency looting. We hope the probe is thorough and meticulous. The truth will eventually come out soon."
Meikles Limited's group secretary, Thabani Mpofu, declined to confirm or deny that an investigation is underway. However, he stated that the company takes all allegations seriously.
"We are aware of certain allegations that have been made regarding our business practices and employee treatment," he said.
"We take all such allegations seriously and are committed to upholding the highest standards of ethics and governance in our operations.
"We value fairness, equality, and transparency and are dedicated to ensuring that our employees are treated with dignity and respect. We will not comment further on these specific allegations at this time."
Pick n Pay, which runs 73 outlets in Zimbabwe, is allegedly prioritising foreign executives over local employees and engaging in unauthorised foreign currency transactions.
The investigation comes at a time when Pick n Pay, as a group, is facing challenges both in South Africa and Zimbabwe. In the year to the end of February 2024, units sold declined by 4.8%, and the company has warned of an impending full-year loss.
The National Employment Council for the Commercial Sectors in Zimbabwe's direct line was not available during the time of writing.
The allegations, which have sparked widespread concern, centre around the company's Managing Director, Malcolm Mycroft, and a fellow South African executive, Walter Stephens.
According to sources, Mycroft and Stephens have been awarding themselves inflated salaries, with Stephens allegedly earning a monthly salary of US$20,000 and Mycroft reportedly receiving US$45,000 per month, plus an annual bonus of US$150,000.
In contrast, the lowest-paid worker at the company receives a mere ZWG 5,000 (US$230).
The allegations have raised concerns about potential foreign currency looting, money laundering and unfair labour practices, with employees calling for an investigation into the matter.
Accordingly, the NEC has begun to investigate the matter relating to the dispute between worker and Pick n Pay top executives.
The employment rights organisation last week started by requesting Meikles recent wage bills, dividend payments, annual reports, quarterly reports, balance sheets and income statements.
The investigators are also seeking information on executive compensation and benefits.
"The investigation is underway and NEC is leaving no stone unturned," a source close to the investigation confirmed.
"By requesting detailed financial information, including wage bills, dividend payments, and executive compensation, they are trying to get a clear picture of the company's financial dealings and whether there's been any unfair treatment of workers and potential foreign currency looting. We hope the probe is thorough and meticulous. The truth will eventually come out soon."
Meikles Limited's group secretary, Thabani Mpofu, declined to confirm or deny that an investigation is underway. However, he stated that the company takes all allegations seriously.
"We are aware of certain allegations that have been made regarding our business practices and employee treatment," he said.
"We take all such allegations seriously and are committed to upholding the highest standards of ethics and governance in our operations.
"We value fairness, equality, and transparency and are dedicated to ensuring that our employees are treated with dignity and respect. We will not comment further on these specific allegations at this time."
Pick n Pay, which runs 73 outlets in Zimbabwe, is allegedly prioritising foreign executives over local employees and engaging in unauthorised foreign currency transactions.
The investigation comes at a time when Pick n Pay, as a group, is facing challenges both in South Africa and Zimbabwe. In the year to the end of February 2024, units sold declined by 4.8%, and the company has warned of an impending full-year loss.
The National Employment Council for the Commercial Sectors in Zimbabwe's direct line was not available during the time of writing.
Source - Nehanda Radio
