AYO strongly denies claims by former employee Zama Mlaba that it misstated costs

Company says the purported whistleblower was a disgruntled former employee using Daily Maverick’s propensity for firing salvos at AYO. Picture Simphiwe Mbokazi, ANA.

Company says the purported whistleblower was a disgruntled former employee using Daily Maverick’s propensity for firing salvos at AYO. Picture Simphiwe Mbokazi, ANA.

Published Dec 6, 2021

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AYO Technology Solutions has strongly denied claims by a purported “whistleblower” and disgruntled former employee in a Daily Maverick report that the company had misstated payroll costs prior to the release of its results for the year to end-August 2021.

Zama Mlaba, a former member of the AYO finance staff, and who had for much of this year been facing disciplinary proceedings at the company on other matters, alleged that the omission would have had the effect of AYO misstating its results by some R15 million.

In a market announcement clarifying the matter yesterday, AYO said Mlaba, who was dismissed for “repeated gross insubordination and insolence”, had claimed that these monies came from undeclared payroll accounts for five months.

BR put questions to AYO, as the allegations by Mlaba were damaging to the company - Mlaba had also claimed that he had sent evidence to the JSE and the Financial Services Conduct Authority. Mlaba could not be reached for further comment yesterday.

AYO executive for marketing Jeni Kostova said: “First and foremost, Mlaba was not dismissed from AYO for refusing to make any changes to the payroll, nor was he retrenched as claimed in the Daily Maverick article. He is no whistleblower.

“Mlaba was dismissed for repeated gross insubordination and insolence. His personnel file even reflects his acknowledgement of his various infractions. He is a disgruntled former employee who appears to have used the Daily Maverick’s well-known tactic for firing salvos at AYO, to settle a personal score with AYO.”

She said it was also astonishing that his ‘whistle blowing reports’ were only filed after the CCMA hearings did not go his way, which led her to question his intentions.

Kostova said Mlaba’s case for what he determined as unfair dismissal was not pending at the CCMA. It had been set down for Tuesday last week, but was not heard, because Mlaba failed to appear at the hearing. The company was, however, meeting Mlaba at an arbitration hearing.

Mlaba’s other case for discrimination was heard at the CCMA and was dismissed, said Kostova.

On the allegations themselves, Kostova said the payroll costs for the 5 months (Sept 2020 to Jan 2021) that Mlaba alleged were changed, were in fact recorded in one single general ledger account.

“From February, AYO implemented a process of itemizing the payroll costs and splitting out the payroll costs into specific expense line items. So, what Mr Mlaba was asked to do at the end of August, was to reallocate the payroll costs for the 5 months that were still sitting in the old account.

“There were no additional costs that he was asked to process. These were only reallocation journal entries. The interim results were not misstated by an amount of R15m as alleged by Mlaba.”

Kostova said AYO had written to the JSE, with the full facts. She said the company welcomed any investigation and was certain that it would be exonerated.

edward.west@inl.co.za

BUSINESS REPORT ONLINE

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