[2008-10-03]  Mujaji Lands Top Post At Tedco
ZIMBABWE Stock Exchange-listed retail and manufacturing firm, Tedco Limited, has announced the appointment of Gerald Mujaji as its new chief executive officer (CEO), suggesting the group was now behind an executive crisis triggered by the resignation of Michael Ndoro in 2006.

That resignation, prompted by the failure by major shareholder Simba Mangwende to allocate at least 52 million shares to Ndoro as part of a package agreed when he left Schweppes Limited to join Tedco, had resulted in Mangwende assuming the position of executive chairman of Tedco.


Tedco consists of a retail division, which is a third of total operations, selling white goods, furniture and clothing, as well as the manufacturing division, primarily involved in the production of furniture.

In an announcement, which coincided with the release of Tedco's half-year results to June 30, 2008, board chairman, Boyman Mancama said Mujaji had joined the group with effect from September 1, 2008.

Mujaji, a former CEO with PG Industries, holds a BSc Hons degree from the University of Zimbabwe as well as a Masters in Business Leadership from UNISA.

The emergence of Mancama as chairman and the appointment of Mujaji as CEO appeared to suggest that Mangwende had gradually moved away from the forefront of the group, but there were suggestions from sources familiar with Tedco that he still wielded executive powers over the day to day running of the group.

Apparently, Mangwende jointly signed the chairman's statement accompanying results for the six months to June 30, 2008. His designation was simply given as director.

Mangwende, a Chartered Accountant, owns Simba Holdings Limited and co-founded Interfin Merchant Bank as a structured finance executive director.

He has previously worked for PriceWaterhouseCoopers (Johannesburg) as an Audit Manager, and ABSA Corporate and Merchant Bank (South Africa) as a structured finance executive.

It was not immediately clear if Tedco would resume a major transformation of the group abandoned when Ndoro jumped ship in 2006.

Under that transformation project, Tedco was expected to de-merge its various operations and relist on the domestic bourse as Nyore Nyore, the brand name for its furniture retail subsidiary.

Mangwende, who was the Tedco chairman then, said: "In line with the focus as highlighted before, it is the board's intention to change the name of the company to Nyore Nyore Ltd once the demerger is complete."

"This should result in the market placing proper valuations on the separate companies and make it easier to establish a more representative value in future transactions."

Mangwende has indicated that regulatory authorities had granted relevant approvals.

Operating profit for the group jumped 2 757 00 percent over the comparable period the previous year to $1.3 quadrillion during the six months to June 30, 2008.

This was from a turnover of 42.5 quadrillion, which was 3 412 195 percent up on the previous period.


Earnings per share surged from $215 the previous comparable period to $3 873.


Source: Copyright © 2008 Financial Gazette.