The heart of the Group Five problem
The mess that is Group Five is the fault of poor management, tough difficult industry conditions and the difference in approach to selling assets between the ex-board and shareholders have escalated its crisis
Amid the drama of Group Five’s shareholder tussle, the issue of whether the 43-year-old firm can regain its place at the apex of the construction pyramid was all but forgotten. Speaking at the shareholders’ meeting, CEO Themba Mosai was candid about Group Five’s woes, stemming from its ailing construction and engineering division. "Our challenges are not only due to the tough industry conditions but some self-imposed inefficiencies, weak strategy implementation and poor management and leadership," he said. In part, this was due to a "culture of impunity and lack of emotional fortitude to deal decisively and candidly with issues".Mosai was speaking hours after Group Five had warned shareholders about another shocking set of results. It said that for the full year to June, it expected a headline loss of at least R596m — far worse than the R338m profit it made the year before. The stock took a beating on the JSE, shedding R288m in value — down 13% in two days — as investors ran for the...
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