Barloworld CEO in a fix

TRUST: ACCUSED OF 'MASSIVE' CONFLICT OF INTEREST IN POTENTIAL BUYOUT

- Roy Cokayne

Barloworld CEO Dominic Sewela has been accused of a conflict of interests over the involvement of a trust for his and his family's benefit in a consortium led by Saudi Arabia's Zahid Group, which is considering making a buyout offer for the JSE-listed group.

There is "a massive conflict of interests" and Sewela should "be suspended pending a disciplinary hearing", said one analyst.

"It's preposterous that the first cautionary has been out for seven months and he [Sewela] has clearly had dealings with these guys and only now does it sound like an independent committee has been formed," he added.

The analyst believes Sewela should have immediately recused himself from negotiations and informed the board he had been approached to be the broad-based black economic empowerment party in the transaction and is now conflicted but is interested in the opportunity and would like to pursue it.