Listed property outfit, Letlole La Rona (LLR), and its former Chief Executive Officer (CEO), Chikuni Shenjere-Mutiswa have reached an out-of-court settlement following legal proceedings laid by the company against its former employee.
Last year, LLR suspended and ultimately dismissed Mutiswa after he was charged with three counts of misconduct relating to his conduct surrounding the company’s Long Term Incentive Plan Agreement, the company’s rewards programme.
After he was initially suspended in May 2020, an independent disciplinary panel found the man guilty of his charges and recommended his dismissal a little over two years after he was appointed to lead LLR.
The matter was reported to law enforcement agencies for criminal investigations and the company also instituted a litigation process against Mutiswa.
The CEO and Letlole however have reached an out-of-court agreement.
Though the matter has now been settled, LLR told its shareholders this week that the settlement does not mean admission of liability between the two parties and is a compromise of disputed claims.
In reaching the decision, the company told shareholders that it considered some facts and amongst them being that it would be uneconomical to pursue litigation for the company.
The company further disclosed that the ongoing legal proceedings would place enormous pressure to the possible detriment of focusing on LLR matters.
“The decision to enter into a settlement agreement was based purely on commercial reasons and now concludes the civil dispute with Shenjere Mutiswa,” said LLR Board Chairman, Frederick Selolwane.
Selolwane further explained that the board had decided that it was in the best interest of the company and its shareholders to avoid the expense burden and uncertainty of litigation and enable the board to focus solely on the business of the company.