South African operator Cell C said in an open letter that it has hired consultants to probe its business practices for any irregularities and to advise on restructuring. CEO Douglas Craigie Stevenson said Cell C has appointed law firm Bowmans to investigate any parts of the business where the operator suspects there may be irregular practices. It has also hired PwC for a full procurement audit and review of processes.
Cell C has appointed Deloitte as independent financial restructuring advisors to assist in optimising business processes, as the company continues to face real challenges. The operator has begun talks with stakeholders with a view to achieving a secure financial position.
Craigie Stevenson said the new executive team appointed in March, along with new management committee, are completely aligned with Cell C’s priorities and committed to changes that are necessary to deliver the new business strategy.
The CEO said they have implemented significant austerity measures and have cut costs which do not contribute to revenue-generating activities, including a review of all contracts to ensure alignment with business priorities and a hiring freeze.
He said it has engaged in discussions with staff and trade union in an open and transparent way, sticking to legal requirements. Craigie Stevenson said Cell C has made two senior appointments in the personnel department and is focused on stabilising relationships with workers, and implemented a signed recognition agreement and formal engagement structures.
It has told employees about the direction and state of the business and stressed that non-compliance with policies and procedures will not be tolerated. It encourages employees to use the independent whistle-blower service to anonymously report irregularities or illegal activities.
Separately, Bloomberg said the CEO told it in e-mailed responses to its questions that Cell C was engaging with its lenders to re-term its debt to allow it enough time to implement a transaction with the Buffet Group. This refers to funding talks with Buffet.
Bloomberg said Cell C has ZAR 8.9 billion of debt and is trying to get new funding from a consortium of investors. The CEO told Bloomberg it has paid ZAR 116 million in interest due to bondholders for June and another ZAR 90 million for another funding arrangement with local banks.
