Dimension Data said it regrets that its excellent relationship with its former Executive Chairman Andile Ngcaba has ended in a legal dispute.
This follows Ngcaba’s decision to take Dimension Data to court over allegations that the company paid him less than his white colleagues.
Ngcaba is claiming over R440 million in damages, which include R261 million worth of unpaid bonuses under Dimension Data’s long-term incentives payment schemes.
He is also claiming R170 million in damages for discriminatory practices and R10 million because of Ngcaba’s “feelings and dignity were injured”.
Ngcaba, who was the company’s executive chairperson between 2004 and 2017, claims to have discovered that he was being paid less than his peers during a board meeting.
He said he was unaware of the alleged disparity in pay until the Companies Act was amended, which required Dimension Data to disclose its directors’ remuneration.
Dimension Data hit back, saying Ngcaba was executive chairman of the Board of Directors from 2004 to 2016 and his oversight responsibility included that of issues related to remuneration for all employees.
“We are disappointed that we now find ourselves in a contractual dispute with Ngcaba. It is perplexing to us why he would allege racism against an organisation he was part of and led, as Executive Chairman, for such a long time,” the company said.
“During this time Ngcaba was also a significant shareholder in the company.”
Dimension Data rejected the allegations of racism in the strongest possible terms.
“Dimension Data is an ethical and values-led organisation and will continue to act appropriately, we will never tolerate any incident of racism and discrimination both in our company and in our society,” it said.
“We remain a committed and active corporate citizen. We will continue to work towards delivering on our part to transform South Africa’s society and economy by creating opportunities for equal and broad-based access for all South Africans.”