Colliers to save Madagascar project

Posted On Tuesday, 23 March 2004 02:00 Published by eProp Commercial Property News
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Listed company Quyn Holdings has won an interim interdict against the CEO of one of its wholly-owned subsidiaries, Colliers Developments. It was alleged that he tried to scupper a $50m property contract on Madagascar.

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The contract, which was signed by the island's finance minister and the president of the country's national assembly, involved Colliers International SA entering into a partnership with the government of Madagascar to develop a mixed-use project on the island. The Madagascan government is financing 40% of the project. It includes a 200-bed hotel, a 1000-seater convention centre, offices for the national assembly and a retail component.

John Holland, a director of Quyn Holdings, said on Friday that Colliers Developments sought the interdict against Tim Redman on February 27 after they had "uncovered" that he had flown to Madagascar after resigning.

Holland said that Redman, who had taken leave, but was still required to serve a two-month notice, had told them he was "going to the coast". Holland said they suspected that Redman was interfering with the project because they also received requests for his letter of resignation from Colliers' partners in Madagascar.

Holland said that Redman's resignation followed Colliers' rejection of his demand for a large remuneration hike. He said that Redman's demands were "extraordinary" and out of line with what other directors in Colliers earned. Holland said they made a counter-offer to Redman, but he handed in his letter of resignation instead.

Holland said that in the resignation letter Redman for the first time hinted at financial mismanagement on the part of Colliers regarding the Madagascar project.

Holland denied any mismanagement, saying that they had so far received only one payment from Madagascar and this had "gone straight into Colliers'

current account" where it was supposed to go, and that they had bank records to prove it.

Because of the request for the letter and the fact that Redman was on the island, Holland and others drew the conclusion that he was trying to interfere with their contractual agreement with the national assembly in Madagascar.

The interdict prevents Redman from "publishing or relating to any person any allegations relating to the financial activities" of Colliers or approaching the national assembly of Madagascar and interfering in their contracted relationship with Colliers. It also prevents Redman from unlawfully competing with Colliers for the project and publishing or disseminating "injurious falsehoods" about the company.

Holland said that Redman was suspended on his return from Madagascar.

Holland said Colliers then decided to send a delegation to Madagascar to "neutralise any damage" that may have been caused, and to introduce to the Malagasy representatives Brian Melhuish, Redman's replacement. Holland insisted the project in Madagascar was still on track and would be going ahead.

"When we arrived in Madagascar, we had a meeting with the presidential advisor and our partners in Madagascar who advised us that Redman had indeed been there for the express purpose of trying to take the project back and that he was indeed spreading injurious falsehoods," he said. They also met with the finance minister and with the president of the national assembly.

Last modified on Wednesday, 16 April 2014 17:17

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