Spar CEO steps down amid reports widespread fraud and BEE loan fronting

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Virgo 18 Jan 2023

Spar says CEO Brett Botten will step down at the end of January, while former board chair Graham O’Connor will be leaving in February.

The leadership change comes after Spar was hit with a wave of negative publicity in 2022, including allegations it had manipulated the value of stores, reported fictitious loans, and discriminated against black franchisors. The more than ten retailers said the group wanted to use their Black Economic Empowerment (BEE) loans to bail out white retailers and dump them. Legal firm Harris Nupen Molebatsi Attorneys was appointed to probe the matter. Its report confirmed widespread fronting and fraud in some franchises. The report also confirmed that BEE loans were used to inflate profit at the retailer.