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SPAR CEO TO STEP DOWN AS LAW FIRM REPORTS WIDESPREAD FRAUD, BEE LOAN FRONTING

Motheo Khoaripe | 18 January 2023

FILE: Spar was hit with a wave of negative publicity in 2022. Picture: © morris71/123rf.com


JOHANNESBURG - Retailer Spar says CEO Brett Botten will step down at the end of January, while former board chair Graham O’Connor will be leaving in February.


The leadership change comes after Spar was hit with a wave of negative publicity in 2022, including allegations it had manipulated the value of stores, reported fictitious loans, and discriminated against black franchisors.


The more than ten retailers said the group wanted to use their Black Economic Empowerment (BEE) loans to bail out white retailers and dump them.


Legal firm Harris Nupen Molebatsi Attorneys was appointed to probe the matter.


Its report confirmed widespread fronting and fraud in some franchises.


The report also confirmed that BEE loans were used to inflate profit at the retailer.


‘Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER’.


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