JOHN Maine, co-founder of Enrich Holdings and CEO of the company, has been suspended following an agreement he reached with the board of directors.
May 4, 2023
2 min read
Struggling Enrich suspends CEO
Enrich Store in Maseru
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The Chairperson of the company, Felix Mobe, this week told Maseru Metro that all parties concerned decided to remove Maine from his post and make him part of the board of directors as a non-executive member.
“It has always been the plan, so we looked into it, and an agreement was successfully reached,” he said.
Maine has been suspended from his position, according to a formal communication from the company to its shareholders.
The March letter showed, among other things, that Maine was judged to be ineffective in his managerial position and was failing to file tax returns on time to the point where the company was functioning without a tax clearance.
The communiqué was subsequent to the special board meeting held on March 20, 2023, where the CEO was deemed to be unqualified.
“Furthermore, the irresponsibility of the CEO was demonstrated in his decisions to boycott paying rent amounting to almost half a million maloti in our rented facilities where the Enrich Stores and Enrich Fitness operate from,” the company claimed in a two-page letter to its shareholders.
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Furthermore, the letter revealed that the CEO made an unauthorised acquisition of gym equipment worth over half a million without a clear financial plan, leaving the company struggling with a debt of over M300 000 to date, as the company still does not have funds to pay that debt, whose agreed period is overdue.
As a result, the board of directors decided to relocate Enrich Holdings' third subsidiary (Enrich Creatives) to a less expensive location because it could not afford to pay its rental in the current location, where the monthly rental is twenty thousand maloti.
“Without any communication with the board through the chairperson, Mr Maine has gone against this decision and this adds even more debts to the company as the said subsidiary is not profitable at present and does not meet its running expenses, hence, acquiring most of its funds from the other two subsidiaries,” the letter added.