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More questions around ‘illegal’ appointment of development agency’s interim board

Buffalo City Municipality’s council ignored concerns from the legal section of city’s development agency that there was no applicable legislation for the appointment of an interim board of a municipal entity, which was ultimately appointed amid contestation from the opposition. Concerns were raised by the Buffalo City Municipality Development Agency’s legal section before the expiry of the term of the previous board of the agency on August 31.

Buffalo City Metro representatives will be roasted by MPs next week.
Buffalo City Metro representatives will be roasted by MPs next week. Buffalo City Metro representatives will be roasted by MPs next week. Picture: FILE

Buffalo City Municipality’s council ignored concerns from the legal section of city’s development agency that there was no applicable legislation for the appointment of an interim board of a municipal entity, which was ultimately appointed amid contestation from the opposition.

Concerns were raised by the Buffalo City Municipality Development Agency’s legal section before the expiry of the term of the previous board of the agency on August 31.

But the concerns were apparently ignored by the ANC-led council, which instead gave mayor Xola Pakati a list of names of the interim board to replace the board that was appointed in August 2019.

The interim board, led by chair Nolitha Peterson, comprises Nobantu Ndevu, Noel van Wyk, Mxolisi Sbam, Andisiwe Kumbaca, Thandiwe Godongwana, Mandilakhe Dilima and Sindile Toni.

Pakati had recommended that the term of the board be extended by two months pending finalisation of recruitment of the new board.

His recommendations were snubbed by the ANC in the region, which instead gave him a list of names for the interim board.

Opposition parties in the BCM council were not happy with the appointment of the interim board.

They wanted the term of the board to be extended by at least three months until a process to recruit new members had been finalised.

Last week BCM advertised for the recruitment of the new board of BCMDA.

A leaked confidential document shows BCMDA’s legal section had forewarned the BCM council about the lacuna in law in the appointment of an interim board.

“The Municipal Systems Act and the BCMDA MOI (memorandum of incorporation) are silent on the appointment of an interim board of directors and provision has been made for the ordinary appointment of the board of directors.

“Clause 10.2.6 of the MOI provides that, prior to the appointment of any director, the council...shall undertake a probity investigation into any or all of the nominee directors of the agency and the failure on the part of any nominee to fully co-operate, or to provide full and frank disclosure, shall entitle the committee to exclude that candidate.

“It is [our] considered view that the Municipal Systems Act, the Companies Act and the BCMDA MOI do not have a provision relating to the appointment of the interim board.

“It is further [our] considered view the lack of such a provision creates a lacuna in law as the BCMDA cannot operate without a governing body,” BCMDA’s legal section wrote.

DA chief whip in the BCM council, Anathi Majeke, told DispatchLIVE this week there were no provisions for the appointment of an interim board in legislation.

“This further raises the issue regarding why the processes where not put in place, that is advertisements and interviews, when the end date of the board was known. 

“The council has not been advised of who is actually incumbent in the interim board, that is their names and qualifications to ensure they actually qualify.” 

Majeke said they were in support of Pakati’s recommendation for the extension of the previous board.

“The decision that was taken [to appoint an interim board] was irrational and illegal,” Majeke said.

Pakati’s spokesperson, Luzuko Buku, said the municipality had advertised for the appointment of BCMDA board of directors as prescribed in law.

“This process will be concluded within the next two months. We are following our processes and are thus unable to comment on confidential documents that have been leaked to the media, because we do not know the intentions of the people who do so,” Buku said.

BCM’s ANC council chief whip, Sixolisiwe Ntsasela, previously denied that the ANC in the region had snubbed Pakati, saying they were simply not in agreement with his recommendations.

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