UNIVERSITY GOVERNANCE CRISIS
Former UCT Council chair Babalwa Ngonyama resigns from Hollard board after independent panel report
Former University of Cape Town Council chair, Babalwa Ngonyama, who was implicated in the independent panel report into the governance crisis at the university – along with former vice-chancellor Mamokgethi Phakeng – has quit her position at insurance group Hollard.
In the fallout from the damning report released last week by the panel investigating governance failures at the University of Cape Town (UCT), the university’s former Council chair, Babalwa Ngonyama, has resigned from the board of Hollard insurance company.
Ngonyama resigned from her role as lead independent director of the insurance group.
“We can confirm that Babalwa Ngonyama has resigned as a Board member,” Hollard’s group spokesperson, Warwick Bloom, told Daily Maverick in response to questions. He did not elaborate.
This comes after a report was released last week by the independent panel investigating governance failures at UCT. The report excoriated Ngonyama and former vice-chancellor Mamokgethi Phakeng. The panel was chaired by retired judge Lex Mpati. Fellow retired Judge Azhar Cachalia, public sector governance expert Trish Hanekom and Wits University’s transformation head Bernadette Johnson served on the panel.
Read more in Daily Maverick: Independent report spits fire at UCT’s recent leadership, blasting Mamokgethi Phakeng
On 2 November, Ngonyama also resigned from the Vukile Property Fund’s board of directors following UCT’s release of the independent panel report, Business Day reported.
The report slammed Phakeng, concluding that she “repeatedly conducted herself unprofessionally by engaging in activity that is prohibited in the UCT workplace, including using threats, intimidation, ethnic slurs, personal insults and also posting racially offensive material on social media”.
Phakeng’s behaviour, the report found, was aided and protected by Ngonyama’s multiple breaches of good governance.
The report found it sufficiently concerning that “Ngonyama’s conduct in failing to perform her fiduciary duty to UCT”, that it recommended she be “reported to the appropriate regulatory authorities”.
It found Ngonyama and Phakeng had initiated the termination of former deputy vice-chancellor Lis Lange’s contract “without having the authority to do so”, and also misled the UCT Council and Senate regarding the circumstances of her departure.
“To conclude that Ngonyama and Phakeng’s conduct during this period amounted to a governance failure would be an understatement. In an attempt to shield themselves from accountability, they subverted the policies and procedures … of UCT.
“Had it not been for the fact that half of the members of Council and most in Senate acted to protect UCT from their machinations, the consequences could have been calamitous,” the report concluded.
Read more in Daily Maverick: University Governance 101 — takeaway lessons from UCT’s big Phakeng mess
The findings of the independent panel vindicate and expand on Daily Maverick’s investigation in October 2022, exposing the governance crisis at UCT.
Phakeng avoided suspension by the UCT Council by reaching agreement on a lucrative early retirement package in February this year. Her total payment package amounted to R12.5-million. She will also receive reduced UCT tuition for her dependents for life and post-retirement medical aid for life.
Ngonyama resigned from UCT with immediate effect on 22 May 2023. This followed a recommendation by the independent panel, in an interim report, that she be removed immediately.
Read more in Daily Maverick: UCT chair Babalwa Ngonyama resigns following governance panel’s recommendations
“Her removal cannot wait for the panel to complete its work and finalise its report, much less wait for the matter to be dragged through the courts. The facts are clear, and Council must act,” the interim report, dated 17 May, concluded.
In a later statement, Ngonyama said she had taken the decision to step down as UCT Council chair after “thoughtful consideration, and deep and thorough reflection”, and taking into consideration the current circumstances on her wellness and health.
Shortly after resigning from the university’s Council, Ngonyama also quit the board of pharmaceutical group Aspen in May, News24 reported.
Daily Maverick requested comment from Ngonyama, who had not replied by the time of publication. Her comment will be added if received.
On Wednesday, Parliament’s portfolio committee on higher education, science and innovation was briefed by UCT on the findings and recommendations of the panel’s report. DM
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The problem is that they sit on boards. Perhaps if they worked it would have been better.
They? Your comment is offensive.
In the words of the great Stephen Fry:
“It’s now very common to hear people say, ‘I’m rather offended by that.’ As if that gives them certain rights. It’s actually nothing more… than a whine. ‘I find that offensive.’ It has no meaning; it has no purpose; it has no reason to be respected as a phrase. ‘I am offended by that.’ Well, so f@#$%^g what.”
It is time to stop the disempowering of people by becoming offended on their behalf. #End offense appropriation
A storm in a teacup??
Offense receptors in need of recalibration?
You say that “they” has a racial connotation, but there is no context to validate that connotation. Perhaps, if you thought of “they” as meaning the plural of two people, which is what it potentially is (Ngonyama and Phakeng). Perhaps Heinrich was intonating race, perhaps not. I would say give the benefit of doubt that Heinrich was not; but that is assenting to your intonations and connotations. Just because YOU think it is racial, don’t make it so. Before casting potentially baseless aspersions, maybe find out what was meant.
‘They’. Incompetents?
12.5 million to get rid of this incompetent, toxic, racist deployed cadre. Another one fingered salute to us law abiding tax payers.
The racially correct psychotic is a protected species in South Africa dont you know.
Do you have evidence whether her pension payout was included or excluded from the 12.5 million? I don’t. Is that another example of evidence-free assertions. When I moved from one from a university I received my pension payout, subject to some restrictions. And it was my right and not a golden handshake.
The real question is: why was she even paid 1 cent? From everything I’ve read she should have been fired for a whole variety of transgressions.
Could it be that the advice of lawyers on both sides arrived at this settlement, otherwise her rights enshrined in our laws would have been violated?
I have no doubt this is the case Loyiso, the problem is that, whether implicitly or explicitly some enjoy more protection than others in our country. Please remember the law is just that, law. It is not necessarily right and it is not necessarily fair as it is created by humans, with the consequent flaws. Which is why laws change over time …not necessarily for the better.
‘Settlements’ exclude pension, to which everyone has a right.
Next up a plum appointment as an anc minister
Phakeng still flying high, no repercussions for her, didn’t Ramaphosa appoint her to some Government board ?
What has happened to UCT? Standards at all SA universities seem to be going south.
Have you come across evidence of this that you can share with us? One can choose any metric and request CREST to check whether SA universities now are doing better or worse than under apartheid. From the metrics I have come across, they are doing better. There are many people who may see most of these comments as using the UCT Panel Report as an opportunity to bash Black people as incompetent, undeserving, corrupt and racist. The Senate of UCT voted in favour of Prof Phakeng’s appointment and subsequent to that voted in favour of her being given a second term. And I assume the Senate was presented with evidence in support of this. One can’t gloss over that.
Academically I cannot speak to but I have walked at UCT and was shocked at how run down the campus is looking. Certainly it is not anything like it could, and used to, look like.
My observation from this simple and indisputable truth is that quality of maintenance is usually a good indicator of quality of leadership and of management.
All South African universities have an infrastructure maintenance backlog, due to underfunding. South African universities are underfunded. Budget cuts in expenditure often leads to reduced resources allocated to infrastructure. Nothing to do with the quality of leadership and management.
They are underfunded because the state is failing at levels broader than just universities.
But cutting grass and weeding and painting is something that could easily be covered by the money paid to Phakeng, and no doubt the same applies to other golden handshakes as is seen in pretty much every organisation in which government has a hand. That mismanagement and lack of accountability is literally at epidemic proprtions in South Africa is Im sad to say overtly obvious to any objective viewer.
There is no such thing as ‘underfunding’. The correct term is ‘overfunding’ of the salaries of all government departments and SOEs.
“as an opportunity to bash Black people as incompetent, undeserving, corrupt and racist.”
Nope, they’re doing it very, very, well themselves.
So, in your honest opinion, Black people are incompetent, undeserving, corrupt and racist. Well, I am Black. I am competent. I deserve everything I have achieved in life. I am not corrupt. I am not racist.
A very fair and calm response Loyiso, and great to see. I wouldn’t take the comments too seriously or personally. As background I believe many are borne of frustration at the way our government, which is undeniably black in the vast majority, is taking our beautiful country with so much potential and destroying it for everyone living here, both black and white, while siphoning off funds for the few elite. And these same politicians are in parallel playing the race card at every possible opportunity to deflect attention for the crime and failures away from themselves, uncaring at the legacy of division that they are sowing and perpetuating in our country, when we should be in a process of healing and working together. I can say that it is very very hard to remain impartial when being forced to watch, as it is so overtly destructive for all the people of our country, and it does sadly engender oftentimes unjustified vitriol.
I can only hope that our all our countrymen, black, white and every shade in between wake up to the fact that we are all sailing in one ship and that we all sink or float together. And that we all work together in 2024 to vote for a party that eschews corruption and racial politics and focuses on the the things that truly matter – the services it delivers to all our people.
Unfortunately the glowing statement on performance of RSA universities cannot go unchallenged. There may be some improvements since 1994, but there are serious failures. I bothered to check some research:
Omphile Temoso & Lindikaya W. Myeki
Recent high dropout and low graduation rates in the South African higher education institutions (HEI) as well as government funding cuts….. have heightened the urgency for the higher education sector to improve its productivity…… panel data of 22 public universities over an 8-year period…..the productivity of HEIs in South Africa is increasingly coming under serious scrutiny due to long-standing challenges faced by the sector such as the declining government grant funding, growing student enrolment rates (hence high student to staff ratios) and high dropout rates (Tjønneland, 2017). In fact evidence shows that despite significant efforts made by the South African democratic government through various policies to improve the efficiency, productivity and equity of the higher education sector…. some HEI in the country continue to perform poorly in terms of graduation rates and research output…
It is impossible to present full research in this short column, but the declining trend in performance is the point I wanted to make.
A.K.A Fred, my assertion was that SA universities are performing better now than under apartheid. They are producing more graduates, their are producing more publications; they have established more academic partnerships than before; they attract students and staff from other parts of the world compared to under apartheid; they’re graduating more students from poor backgrounds; they have more academics with PhDs. SA universities are under-performing in certain areas and that’s a different question as to why. Students top out amongst other things through lack of funding, not because of underperformance of universities. If you know how the graduation rate is calculated, then you may agree with me that if there’s a jump in enrollments, it could lead to a drop in graduation rate since the latter is a ratio where the denominator is total enrollments.
Loyiso, I respect your perspective and that ypu are engaging in an honest and open way. Honestly, I can tell you that for me this has nothing to do with race, and everything to do with working together to build a great country. To do this, we need to recognise hard truths and be honest with ourselves about them.
In every instance and in every topic, race should be the last thing we look at when judging someone’s fitness to hold a position.
I can 100% guarantee you that if Phakeng had been doing a good job and being the academic leader she should have been, treating her colleagues with compassion and respect, ie. being a good leader of an
– none of the articles, enquiries, blaming or recriminations would have happened.
She was not the right person for the job. And she should not be being rewarded for the needless destruction she has caused to an academic institution that exists for the good of all of our children.
Loyiso, you are completely correct. Moreover, the implication by many that Phakeng was an ANC cadre who was deployed to UCT and that standards have fallen and the University is collapsing are completely incorrect. As far as I know, Phakeng has never shown any allegiance to any party, and neither did Ngonyama. Moreover, UCT has had austerity budgets for years now, due largely to falling State subsidies and mounting student debt – neither of which can be laid (OK, student debt maybe) at UCT admin’s door – meaning that certain aspects of maintenance, etc., have had to be cut back. I am afraid that there is a bunch of when-wes out there who will bash the ANC at any costs, including via the supposed connection with Phakeng, and for whom everything must be worse than when they knew UCT. We as a University will survive this, and will continue to be a haven of excellence. Thanks for your considered and rational comments!
Im very interested in your comment and frankly I dont care about ANC or race or gender. I have only one question for you: Are you saying Phakeng was good for the university in her role and do you agree that she should have been paid so much on/to exit?
Phakeng (writing her name always brings a chuckle) was by all accounts a horrific manager. Read the scathing comments in the report. This is not about race, or gender, for that matter. It’s about people management. And whenever there is a toxic work environment, the entire organisation suffers.
Do you have evidence to support your statement? Have you read the report? Just because she was voted by the senate twice does not mean that the appointment was the right thing to do. This appointment was flawed from the outset and has now been proven so. Nobody is saying that all black people are incompetent or do you have proof of this. Sadly, both these are ostensibly well qualified, but that does not mean they were suitable.
To your statement that the universities are doing better than during apartheid, what metric are you using? The one I always look at is how we compare with other universities around the world and we slip down the rankings every year!
Alley Cat, I read the report. With respect to rankings, whatever their merits are and there’s lots of literature on this, I would recommend to you a book written by Chris Brink, former VC of Stellenbosch University and 15 years VC of Newcastle University. One of his observations is that if you were change the weightings in the formulae used by ranking organizations (which sometimes happens), then the ranking order changes. My alma mater, Oxford University, sometimes drops and sometimes rises. With regard to metric used, I recommend to you the reports produced by CREST at Stellenbosch. Or contact them directly.
Every year I deal with a small number of fresh graduates in a few specific technical disciplines from some prominent SAn universities. I can assure you my experience is that academic standards have been dropping over time, and that they continue to do so. I can further assure you that this effect is systemic and is not obviously correlated with race or gender or any other demographic trait. In extreme cases, there are quite large essential knowledge gaps, as if the graduate had never attended particular courses that I know are part of their supposed curriculum. Excellence in students is almost invariably the result of extracurricular interest and study, unprompted by the institutions they attended.
You can write off the above as merely anecdotal and/or confirmation bias if you so wish but you won’t convince me that university standards are being maintained or are improving in the technical areas in question.
Dear Prof Nongxa, thank you for your balanced comments. While I agree academic standards were not compromised during this period, I do think that if Phakeng and Ngonyama had not been stopped, I fear that there would have been severe long term damage to the institution.
I think it is safe to say that an environment of fear started to emerge especially regarding the freedom of expression so much so that I know students were actually relieved to do classes online when Covid came around. The Fees Must Fall movement were allowed incredible latitude and anyone who opposed their methods or dialogue were personally intimidated. I know this happened during Max Price’s tenure, but this became the new standard for expression and dialogue. It became actually unpleasant to be on campus if you opposed these views so you attended class and then went home. I truly hope this can be turned around in the future.
One wonders what expertise she has in Insurance, Real Estate, Pharmaceutical or business in general. Or was it a case of going down the list of black female directors for hire.
And what were pussy cats at UCT thinking negotiating a package when it was a clear case if a quick disciplinary hearing and instant dismissal.
Sydney, it was made clear at the time Phakeng was offered the golden handshake that UCT was doing it to avoid protracted litigation and huge costs – and the foot-dragging that goes with these, that would have paralysed the University. There is no such in, in universities, as “quick disciplinary hearing[s] and instant dismissal”: this is not the corporate world; things do not happen like that – and look how long it took the independent panel to come out with their findings, and if she had still been in post now (albeit suspended, maybe), such proceedings could only start now. So the “pussy cats at UCT” did the right thing, distasteful as it may appear from the outside.
That’s a hefty ‘pay out’ – R12.5 m plus other benefits.
These Lex Mpatis are being used as puppets to discredit black leadership. These ladies should take that report on review
Good idea. She can splurge some of that ridiculous payout she got to employ that very very rich – but very very useless, it appears as he can never seem to win a case – Mpoohfoo to defend her apparently – according to you – bruised brilliance in an interminably long review, much like that other doyen of ‘black’ excellence, Mkhwebane. Can’t wait.
Forget race Aviwe, it is crippling your mind and your objectivity.
It is time to move on and grow.
Really, that is an uniformed and inflammatory statement that is completely devoid of truth. Have you read the report? Take gender and ethnicity out of it, and what do you have? Evidence that several people apparently colluded to purge the top echelons of the University of people who disagreed with them, or who were pointing out the illegalities of what they were doing, and then colluded further to obfuscate and obscure these activities. In a nutshell. So, let me fix your statement for you: “Lex Mpati and other distinguished legal and governance experts exposed evidence of governance irregularities at the University of Cape Town, linked to the University leadership”. There! They can certainly take the report on review, but will almost certainly lose, and incur serious financial losses – as well as possibly exposing even more irregularities for which they could potentially incur more penalties.
How covenient Mess up your job and win R 12 grand plus benifits for life And we wonder why South Africa has sunk into the cesspit
It’s amazing how the narcissists seem to always bubble to the top. Surely, it should be an imperative to conduct psychometric tests on company and SOE boards and top management with a particular brief to identify narcissism, racism, sexism and other similar conditions to protect companies and their staff from the destruction caused by them being in positions of authority.
Add presidents and politicians to that list! This is not a trivial issue. Destroying a company or institution is one thing. Taking a country to war, ending up with a dictator and so on are altogether more dangerous risks. Not screening for personality issues – particularly psychopathy, narcissism and machiavelianism – is exactly why we end up of with these problematic people.
Man, did those chickens come home to roost…! A family member who knows of these things told me back near the beginning of the year that if there were adverse findings against Ngonyama, she would have to resign immediately from all the boards she was on, because they took a dim view of such malfeasance. And so it has come to pass…. I still can’t get my head around just what they thought they were doing, and how they would get away with it: UCT academics are nothing if not smart, and once things had come out (thanks, Daily Maverick!) it was pretty obvious that gears would start to mesh and the engine would start to turn to oust them.
Phakeng DID get away with it! All R12,5m+ of it … Imagine how many deserving students could have been financed for their full academic journey with that money!?!?
Perhaps the reason why so many incapable, deployed BEE top management cling to power for as long as possible, is to loot, or at least get paid extortionate salaries, while they’re in their posts, before they get exposed as useless and unable to lead.
If the matter went to court it would have been the lawyers that scored the R12.5 More likely it was a trade-off before the panel had done their work.
The question now is whether UCT will recover the money and revoke the privileges that certainly were not earned or deserved?
How did she get any of these direcorships ??
BBBEE
Perhaps one can screen for chips on the shoulder prior to hiring/inserting? Mind you, these are often not appointments of choice, are they? Bye bye to yet another failure!
Great to hear from you Prof. Nongxa. You led my alma mater Wits University with distinction and your views are measured and thoughtful, supported by empirical evidence. Unfortunately some of our compatriots will disregard any evidence/s as long as it doesn’t suit their racial lenses. That’s why you see comments starting with “they” read Blacks and thank you Ms. Stephanie Brown for calling this out. Could we please work together to build this beautiful country of ours: at least for our descendants? Is this too much to ask?
Thank you. It was a privilege and an honor to be entrusted with that responsibility.
Sadly, it would seem to be too much to ask. It’s such a complicated issue, compounded by very understandable sensitivities. Given our history, we have created the mess we find ourselves in, and when I use “we”, I am talking as a white woman who never supported the apartheid government or anything they legislated that disadvantaged the majority of South Africans. Nor, when/if I refer to black fellow South Africans, do I generalise. We all know, surely, that there are brilliant competent people of all races and colours. Sadly, generalising is way, way too common in our discourse. So, to black readers, I apologise for all that is hurtful that is said and done in the name of whiteness. To white readers, hey – I’m one of you and there is a certain amount that we just need to suck up! One day, likely not in my lifetime, we’ll all just be South Africans.
What in the world is ‘whiteness’ and who does anything in it’s name?
Whiteness is the assumption that anything that is said by someone who is white has to be valid for all who happen to be white. It is automatically correct. It is the ultimate “us” and “them” – where “they” are implicitly inferior.
Thanks. That sounds delusional. Do you know any real person that thinks like not resident in an asylum?
Hi Moruti,
I absolutely love your sentiment:
Could we please work together to build this beautiful country of ours: at least for our descendants? Is this too much to ask?
In my book it really is not too much to ask, we just need to all wake up and realise that we are all people and that race is a red herring – used these days mainly by unscrupulous politicians to further their own ends.
We are all South Africans and while the past cannot be changed, we do have the ability to start working to together towards a brighter future. In 2024 we need to vote for ethical governance, law and order, clean water, electricity, education and a functioning economy.
You say that “they” has a racial connotation, but there is not context to validate that connotation. Perhaps, if you thought of “they” as meaning the plural of two people, which is what it is (Ngonyama and Phakeng). Perhaps Heinrich was intonating race, perhaps not. I would say give the benefit of doubt that Heinrich was not, but that is assenting to your intonations and connotations. Just because YOU think it is racial, don’t make it so. Before casting potentially baseless aspersions, maybe find out what was meant.
Or just double check with Tom Curry 😀
Not even our universities are not immune from corruption. Is there anything these people don’t destroy?
As Stephanie Brown rightly pointed out in one of the initial postings, using pronouns such as “they” is offensive. As is your comment stating “these people”. Be specific. Use names. Don’t go painting everyone with the same pre 1994 brush.
HAhahahahaha
If you find racism in these comments the problem is you, not the person who wrote them
Am I the only one who has read about out-of-court settlements and NDA in both the private and public sectors in South Africa? Am I the only one who read about CEOs of private, commercial and investment banks in the US, bringing their companies to the edge of bankruptcy, and being offered handsome golden handshakes and parachuted to other plum well-paying jobs? I guess that doesn’t happen in South Africa?
Loyiso, of all the comments you’ve made, I find this one depressing.
Because others do it, it’s ok?
I detest lowest common denominator thinking as a justification for bad behaviour. It is this type of thinking which is a prime cause of decay in our society.
Hello Ricky. What you’ve said is one way of interpreting my comment which is not what I meant or intended. In some circles there’s an observation that we are not evenhanded in responding to similar circumstances, depending on who has transgressed or be fitted. That there is hypocrisy.That we can be harsh on the faults or limitations or benefits received by one person and turn a blind eye to or gloss over the same issue when it’s a different individual. More specifically, Black female Vice-Chancellors could say they get crucified while White male Vice-Chancellors may be condoned or given a free pass for their transgressions. Compare recent occurrences at UCT and Stellenbosh.
If you seek out racism in every nook and cranny I’m sure you’ll find it. I couldn’t care less what colour the unworthy recipient of buckets of public money is.
Loyiso, @M-A-M echoes my sentiments, and really should echo every intelligent person’s. People should not get remunerated unless they earn it. Period. For all races. You say above you are not racist, which I admire, but then you immediately bring race into it, which I do not. One thing I can say for certain is that people are not angry because she is black, the outrage would be the same regardless of the person’s race or gender. Everything I have read, and it has been a lot indicates she has a toxic destructive personality, and in fact that she is racist.
Post retirement medical aid for life? Would that be the anticipated ‘free’ NHI, or trips to Russia for treatment?
Very good.
We need more of this. There should be consequences for bad behaviour.
Next, I wait to see which school will be deluded enough to hire the ex-VC
One has to ask how this woman came to sit on the boards of these companies. It quite clearly had nothing to do with competence. Well – at least her gravy train has come to a screeching halt – although – given recent history – I’m sure she’ll find another one to quietly couple onto soon.
BBBEE
Don’t you agree with me? Aren’t you tired of having to listen over and over again to the “Audio sponsored by Stand Up Business podcast”, before having any of these articles read aloud to you? What’s more, listening on iPhone, in most cases I find I am forced to listen to the 10 seconds ad TWICE before being able to play the article. So, it’s “press play, listen to the 10 seconds repeating humour of the one and laughter of the other, then press play again, and listed to it all over again”. And one is forced to listen hundreds of times to this 10 seconds annoying advertisement, because Daily Maverick has not provided any “skip” or “move on” facility. After having been forced to listen to the two’s laughter too many times, I have completely lost the appetite of ever listening to Mark Barnes or Business Maverick editor Tim Cohen ever again. And sorry for bringing it up here, but I have written to Daily Maverick many times about it, but they have done nothing about it. Don’t you agree?
Sad turn of events for her