Deprecated: str_replace(): Passing null to parameter #3 ($subject) of type array|string is deprecated in /home/zbyiujsu/public_html/wp-content/plugins/jnews-social-share/class.jnews-initial-counter.php on line 40
Deprecated: str_replace(): Passing null to parameter #3 ($subject) of type array|string is deprecated in /home/zbyiujsu/public_html/wp-content/plugins/jnews-social-share/class.jnews-initial-counter.php on line 40
Deprecated: str_replace(): Passing null to parameter #3 ($subject) of type array|string is deprecated in /home/zbyiujsu/public_html/wp-content/plugins/jnews-social-share/class.jnews-initial-counter.php on line 40
Deprecated: str_replace(): Passing null to parameter #3 ($subject) of type array|string is deprecated in /home/zbyiujsu/public_html/wp-content/plugins/jnews-social-share/class.jnews-initial-counter.php on line 40
The Minister of Communications and Digital Technologies Mondli Gungubele has fired the board of the South African Postbank on Thursday. He appointed Khayalethu Ngema with immediate effect as administrator of the bank pending the appointment of the new board.
Gungubele’s decision follows the resignation of some non-executive directors, who resigned ahead of the annual general meeting (AGM) of the Postbank that took place on Thursday.
According to a statement from Gungubele’s office, the removal of the board follows incriminating allegations from a forensic investigation report by KPMG that Postbank continues to use service providers that have been unlawfully contracted.
The statement said the service providers were being paid millions of rands without valid contracts and no proper procurement processes were followed in their appointment.
“The forensic report recommended that the shareholder must act against the board of directors, a recommendation that was supported by senior counsel’s legal opinion, taking into account the details contained in the report.
“In light of the forensic report, the Minister followed due process and indicated his intention to make his final decision at today’s AGM in terms of Section 71 of the Companies Act, which sets out the process a shareholder must follow to remove directors,” said the statement.
Gungubele said Ngema has extensive experience in leading complex and large public sector organisations through difficult turnarounds and corporate stabilisation.
“He has had to lead various programmes of operational improvement and service delivery innovation.
“As he will assume the role of the board, he will work closely with the recently appointed CEO, Miss (Nikki) Mbengashe and her management team in turning around the Postbank,” said Gungubele.
Related Articles
Visit thepinkbrain.co.za for more news
Source link