Cape Town – The Minister of Communications and Digital Technologies, Mondli Gungubele, has accused the board of directors and chairperson of the South African Postbank of pre-emptively resigning to evade accountability for alleged unlawful conduct.
This follows a recent “technical glitch” that caused delays in grant payouts to thousands of social grant beneficiaries, including the elderly, disabled, and child support recipients.
The minister dismissed the board amid allegations of an unlawful contract valued at R140 million.
[WATCH] Communications and Digital Technologies minister Mondli Gungubele says the SA Postbank board left because of serious allegations of illegal contracts worth no less than R140 million which is yet to be justified.#Newzroom405 pic.twitter.com/fOruHb3O84
— Newzroom Afrika (@Newzroom405) September 14, 2023
Gungubele cited a forensic investigation report by KPMG that revealed irregularities in the payment of service providers and the lack of proper procurement processes at Postbank.
He argued that someone had to accept responsibility for these issues and questioned why the board chose to resign before the annual general meeting.
“Someone has to accept responsibility. In this instance, in our view, we are clear the board had to accept that responsibility. Why they opted to resign before we take a decision in the [annual general meeting] AGM, they are better placed to explain that,” EWN quoted Gungubele as saying.
The board members had accused the minister of creating a hostile environment, but he emphasised the importance of addressing governance concerns at Postbank.
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Compiled by Betha Madhomu
