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GAUTENG TURF BATTLE

Leadership woes continue for troubled Gauteng Growth and Development Agency

Leadership woes continue for troubled Gauteng Growth and Development Agency
Tasneem Motara on 24 May 2023 in Johannesburg, South Africa. (Photo: Gallo Images/Luba Lesolle)

The ongoing battle for CEO position at the Gauteng Growth and Development Agency (GGDA) has intensified as Simphiwe Hamilton, the board’s preferred candidate rejected by MEC Tasneem Motara, headed to court to contest the directive to restart the recruitment process. The board’s leadership were also ‘rotated’ in a December AGM.

The selection of a permanent head of the GGDA has stalled once again with legal action taken by the board’s preferred candidate, Simphiwe Hamilton, who had been rejected by MEC Tasneem Motara.

In yet another surprising move, the board’s leadership, including Dr Sibongile Vilakazi and Thembisa Fakude, were “rotated” in an AGM  held on 8 December 2023.

The GGDA has been without a permanent CEO for more than a year after the dismissal of former CEO Mosa Tshabalala, allegedly found guilty of insubordination, dereliction of duty, dishonesty, incompatibility and accessing confidential company material without authority, according to a report by City Press

According to MEC Motara’s spokesperson Gift Langa, the recruitment process for a CEO cannot proceed as the MEC awaits the court outcome of Hamilton’s legal challenge.

The MEC was served in June, and our court appearance was in November for which we were given a postponement – the date yet to be communicated by the court,” said Langa.

Hamilton had been acting CEO, following the dismissal of Tshabalala in February last year, until he was fired by Motara, a month before his contract ended just days after the dissolution of the agency’s board in March over the CEO recruitment, leading to a court case and subsequent reinstatement after the Pretoria high court ordered the MEC to reinstate the board members and  accused Motara of being “inordinately harsh and heavy-handed”. 

However Langa said, “The ‘concern’ of heavy handedness is yet to be substantiated. The MEC uses all relevant legislation, departmental policies and procedures, regulations provided for by either national or provincial legislation to govern her relationship with all entities. These include board reps, monthly reporting meetings through executive management meetings and other oversight bodies.”

Motara is also accused of dissolving the Gauteng Gambling Board earlier this year. However, she has denied these allegations, stating the board could no longer be legally constituted after six members resigned.

In other developments, Motara has “rotated” the chairperson and deputy chairperson of the board members (Dr Sibongile Vilakazi and Mr Thembisa Fakude) during an Annual General Meeting held on 8 December 2023, citing new skill sets, improved operational efficiency, resignations and allegations of corruption and mismanagement, which may affect the agency contained in a news report aired on the Newzroom Afrika channel. 

In this instance, rotation means being removed from initial roles of leadership and becoming ordinary board members. Vilazaki was replaced by Kgotso Maja (chair) and Fakude by Kganki Matabane (deputy chair).

Gone rogue

Commenting on the rotation, a Gauteng government provincial leader who asked not to be named claimed: “It is clear that Tasneem has gone rogue. How can you make such changes after the court made a damning ruling after your previous poor decision.” 

Ahead of the AGM, there were allegations of multiple appointments for Thandiwe Godongwana, a GGDA board member and the wife of Finance Minister Enoch Godongwana. Dr Vilakazi, former Chairperson of the GGDA board, is said to have played a key role in Godongwana’s wife Thandi being appointed to four high-paying positions of the GGDA and its subsidiaries. This has been one of the reasons Motara cited as why she is “rotating” Vilakazi.

Vilakazi has denied the allegations. The GGDA also released a statement stating the reports were “false, unfounded and utterly misleading to the public”.

According to those opposed to this decision made by Motara, rotating the board members was a move to spite the board members, who won a court case against her and the agency after she dissolved it earlier in the year over recruitment of a CEO for the agency. 

However, Langa said the MEC rejected Hamilton as a candidate for CEO not because she was dissatisfied with the board’s preferred candidate but rather that she had requested the process be restarted as there were several flaws in the process.

“In particular, as it relates to whose responsibility it is to appoint the CEO. The GGDA Act makes it very clear that it is the MEC who appoints the CEO, not the board. And when the MEC was furnished with the recommendation from the board she could find no paper trail from the previous MEC delegating that authority to the board. The MEC preferred that the process restart so that it could be under the GGDA Act,” said Langa.

Amid the turmoil, GGDA remains without a permanent CEO, with Saki Zamxaka, CEO of Gauteng Enterprise Propeller, serving in an acting capacity. 

No permanent head

With no permanent head, the stability of GGDA is under scrutiny, but Langa said that current acting CEO Zamxaka is maintaining efficiency.

“There needs to be some semblance of permanence for any organisation to function efficiently. This includes the appointment of a CEO or any essential staff. Although Mr Zamxaka has done a stellar job at holding the fort, there needs to be a head in place that will primarily deal with the affairs of the GGDA. For now, there are no major concerns about stability or performance,” concluded Langa.

Read more in Daily Maverick: Downtown is looking up – Joburg inner-city projects bring work and hope to its young residents

The complexity of GGDA’s governance battles, the struggle transcends mere procedural conflicts; it delves into the agency’s substantial budget and the intricate political rivalries within the province’s ruling party factions

Insiders suggest that Premier Panyaza Lesufi has been given flak by senior Gauteng government and ANC provincial leaders, who feel that he should have acted more decisively with Motara. 

Panyaza is the Gauteng ANC chairperson and Motara is deputy secretary of the party in the province.

 Tasneem Motara (Left) was elected deputy Provincial Secretary and Panyaza Lesufi (right) new Provincial Chair during the ANC Gauteng 14th Provincial Conference in Benoni in 2022. (Photo: Denvor de Wee)

The unfolding saga at GGDA not only exposes governance fault lines but also reflects the broader political dynamics shaping the province’s landscape. DM

This article was edited following initial publication to remove a comment that was subsequently denied, about delays in Hamilton’s legal challenge. 

Gallery

Comments - Please in order to comment.

  • frances hardie says:

    Huh!

    • Phiwokuhle Xulu says:

      One can’t make this stuff up! We are really a cursed nation, at this point. What decisions can the ANC and its deployed cadres make?

  • Phiwokuhle Xulu says:

    The ANC factional politics, corruption and cadre deployment continue crippling state owned enterprises. What kind of a state/province/municipalities have their entities runned for years by individuals acting capacity?

    In 2024, we need to vote wiser!

    #ActToFixSA
    Registertovote.elections.org.za

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