Global Media executive accuses shareholders of ‘reprehensible’ actions

The executive committee of Global Media Group (GMG), headed by Joao Paulo Fafe, on Tuesday accused other shareholders of committing “ethically and morally reprehensible” actions that contributed to the media company’s current situation.

In a text published in an internal newsletter to which Lusa had access, administrators said that “in the little over three months since this Executive Committee took office, there has rarely been a day when it has not been taken by surprise due to the facts and procedures that have been part of this group for the past several years and which, without a doubt, border on what can be considered opaque and irresponsible management.”

“For the sake of the peace of the group, we have at all times chosen not to create a situation of discomfort in relation to other shareholders, especially those who, as stakeholders, were involved in situations that were not only legally incompatible, but were also clearly ethically and morally reprehensible.” , accused.

The executive committee of the group, which owns Jornal de Notícias, Diário de Notícias, TSF and O Jogo, ensured that it faces on a daily basis “a very difficult financial situation and that the previous ‘due diligence’ did not reflect at all.”

“The reality that Global Media Group actually lives in, both in terms of debts to suppliers and revenues that are significantly below what we were guaranteed, as well as internal procedures that are truly outside the bounds of the law, have forced us to move forward with the plan restructuring. this, in addition to the necessary cost containment and rationalization of resources, implies, whatever it costs us, a clear “weight loss” from the point of view of workers,” he lamented.

The plan, which they said was “approved by all shareholders without exception,” is “the only way to survive for this group, which has been an orphan of the strategy for years and has accumulated liabilities that must be quickly terminated,” the Commission’s executive director guaranteed, emphasizing that “failure to put this plan into practice” would “lead the Global Media Group to the death that has long been announced, and that only irresponsibility and a refusal to face reality means that many are still unwilling to admit.”

Managers said they are “aware of the impact the delay in December wages is having on everyone, as well as the inability to process the Christmas bonus for 2023,” and that it will be paid “throughout this year.”

“We are not part of this group and do not concentrate on anything other than its viability and the survival of its brands, and our position has nothing to do with those who in the past, taking advantage of the enormous heritage that this group possessed, took advantage of them to serve to conduct business without effective profit for Global Media Group,” they accused, without elaborating.

Management clarified that World Opportunity Fund owns 51% of the shares of two companies, Palavras Civilizados and Grandes Notícias, “where shareholders Marco Galinier and António Mendes Ferreira own the remaining 49%.”

“In turn, these two companies own 50.25% of Global Media,” he assured, pointing out that “in fact, WOF has an indirect stake in GMG of about 26.0%, and, he emphasized, the share capital of GMG is still “29.35% belongs to shareholder Kevin Ho and 20.40% belongs to shareholder Jose Pedro Soeiro.”

Last week, GMG shareholders Marco Galinha, Kevin Ho, José Pedro Soeiro and Mendes Ferreira said it was World Opportunity Fund’s “blatant non-compliance” with its obligations that prevented workers from being paid.

The executive committee, in turn, stated that “despite the difficult financial situation in which the group finds itself, the remaining shareholders have already twice categorically refused to make any financial contribution to the group.”

GMG workers have planned a strike for January 10 to protest against delays in payment of wages and other demands.