Katzao quits, faces possible lawsuit

LEGAL Shield Holdings has announced the resignation of its suspended Managing Director, Stanley Katzao.

Katzao, who had been on suspension since November 24, apparently tendered his resignation through his legal representative on February 16. He was facing charges of misconduct after allegations of corruption emerged with regard to a business deal negotiated on behalf of the company.In January, while preparing for a disciplinary hearing against him, the company added an additional charge of corruption against Katzao, after more evidence allegedly emerged against him.Legal Shield Holdings said in a statement over the weekend that all documentation regarding Katzao’s case had been forwarded to the Anti-Corruption Commission for their attention.The company is also in the process of instituting legal proceedings to recover all money lost to the company because of the alleged fraudulent activities.According to his charge sheet, Katzao last year negotiated with German-based trading house Globalsource GMBH to fraudulently increase the price of an order by Legal Shield, allegedly pocketing the extra money himself.Katzao had been editor-in-chief of the weekly newspaper Informanté at the time, which bought paper from Globalsource.On the first charge against him, Katzao stood accused of pocketing US$35 for every ton of paper bought by his company.On a 300-ton order, his allegedly ill-gotten gains amounted to US$105 000.The second charge reads roughly the same: “In that during or about the period May to July 2006, you in breach of your fiduciary duty towards your employer and to the actual alternatively potential prejudice of your employer, requested and / or instructed / and or agreed with one Patrick Brennan, acting on behalf of Globalsource GMBH, Germany to increase and / or inflate the original offered price offered to your employer by Globalsource GMBH with an additional US$40- which was subsequently reduced to US$35 – per ton of paper ordered and / or quoted for.You are therefore guilty of miconduct.”Legal Shield said Katzao’s resignation was tendered unconditionally, and that no further negotiations were conducted between the parties.”The matter was disposed of strictly in accordance with the provisions of the Labour Act,” the statement reads.Piet Bekker has been appointed as acting managing director of Legal Shield Holdings.He was facing charges of misconduct after allegations of corruption emerged with regard to a business deal negotiated on behalf of the company.In January, while preparing for a disciplinary hearing against him, the company added an additional charge of corruption against Katzao, after more evidence allegedly emerged against him.Legal Shield Holdings said in a statement over the weekend that all documentation regarding Katzao’s case had been forwarded to the Anti-Corruption Commission for their attention.The company is also in the process of instituting legal proceedings to recover all money lost to the company because of the alleged fraudulent activities.According to his charge sheet, Katzao last year negotiated with German-based trading house Globalsource GMBH to fraudulently increase the price of an order by Legal Shield, allegedly pocketing the extra money himself.Katzao had been editor-in-chief of the weekly newspaper Informanté at the time, which bought paper from Globalsource.On the first charge against him, Katzao stood accused of pocketing US$35 for every ton of paper bought by his company.On a 300-ton order, his allegedly ill-gotten gains amounted to US$105 000.The second charge reads roughly the same: “In that during or about the period May to July 2006, you in breach of your fiduciary duty towards your employer and to the actual alternatively potential prejudice of your employer, requested and / or instructed / and or agreed with one Patrick Brennan, acting on behalf of Globalsource GMBH, Germany to increase and / or inflate the original offered price offered to your employer by Globalsource GMBH with an additional US$40- which was subsequently reduced to US$35 – per ton of paper ordered and / or quoted for.You are therefore guilty of miconduct.”Legal Shield said Katzao’s resignation was tendered unconditionally, and that no further negotiations were conducted between the parties.”The matter was disposed of strictly in accordance with the provisions of the Labour Act,” the statement reads.Piet Bekker has been appointed as acting managing director of Legal Shield Holdings.