EDITOR’S NOTE:
ROB ROSE: Duplicity at Group Five
Behind the ‘resignations’ of the construction firm’s CEO and others lies an intriguing tale of secrecy and double-dealing
There’s a governance crisis brewing at beleaguered construction company Group Five that has all the makings of an epic boardroom thriller. Over the past 43 years, Group Five has built some iconic structures, both in SA and abroad. In Durban, for example, there’s Moses Mabhida stadium; in Sandton, there’s the Michelangelo Towers; and overseas, it worked on Dubai’s International Airport, among other projects. But Group Five’s fortunes, like those of its peers, darkened in recent years. First, projects dried up. Then a collusion scandal ripped away the last bit of trust in building firms. Over the past three years, Group Five’s stock fell 56%, Aveng’s 79% and Basil Read’s 78%. In recent months, however, sentiment had become slightly less toxic. Projects began to trickle in and Group Five’s profits even grew 63% last year. But then things got really strange, really quickly. Without warning, CEO Eric Vemer "resigned" in February. It sparked a stampede. He was followed by engineering head...
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