THE Minister of Communications and Digital Technologies, Mondli Gungubele, has taken extreme measures to make sure that technical glitches that resulted in delayed payments of social grants last week should never happen again.
This comes after he removed the board of directors of the South African Postbank following the pre-emptive resignation of some Non-Executive Directors and the board chairwoman ahead of today’s Annual General Meeting (AGM) of the Postbank.
The minister said the removal of the board follows damning allegations from a forensic investigation report by KPMG that the Postbank has continued to use service providers that have not been lawfully contracted.
“These service providers were being paid millions without valid contracts and proper procurement processes being followed.
“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,” he said.
Gungubele said the board of directors resigned on 12 September, two days ahead of the AGM.
He said the only remaining non-executive director was removed at the AGM in line with Section 71 of the Companies Act.
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“Prior to the forensic report, we had several engagements with the now former chair and the full board concerning governance matters which, if not attended to, will impede the ability of the Postbank to continue its journey to a full banking licence in the interest of the Postbank being a developmental state bank,” said Gungubele.
Meanwhile, the Postbank board chairperson and none-directors are attributed their resignations to the recent “unfortunate” incidents and not reaching a common ground with the Ministers.
Former chairwoman Thabile Wonci said over the years, they have dedicated the time, energy, and efforts towards serving the bank with utmost commitment and passion.
“We have strived to uphold the highest standards of ethics and integrity, always working in the best interests of the bank and its stakeholders.”
“Our common goal has been to contribute to the growth, stability, and success of Postbank,” she said.
Wonci said to this day, the board has not been fully and meaningfully engaged on any of the above cited various communications.
