Mangaung Executive Mayor Mxolisi Siyonzana who survived a motion of no confidence sponsored by EFF, DA, and AASD last Friday by a slim margin, is now facing fresh allegations of failure to intervene in the non-functioning of Centlec SOC Board.
Four independent sources privy to the developments in the African National Congress (ANC) say Siyonzana has been instructed by Interim Provincial Committee (IPC) to dissolve the Centlec Board.
A letter dated 17 February 2022, from Kenosi Moroka, Centlec Board chairperson to Mxolisi Siyonzana, Mangaung Executive Mayor in possession of this publication paints a shocking and glaring picture.
Moroka refers to his engagement with Siyonzana as in October 2021.
“On or about the 19th October 2021, I as the chairperson of the Municipality Entity appealed to the Executive Mayor based on the concerns raised in relation to the accountability, compliance requirements and non-functioning of the Board that the Executive Mayor, as the Shareholder, to intervene and/or steps-in with the view of bringing matters to normality within the Entity to enable the Entity to function optimally and to the best interest of the shareholder (Entity).”
Moroka goes further into failure by the Municipal Entity.
“The Municipality Entity has failed to contribute R114 million in the previous financial year ended 30 June 2021, and only paid R6 million to the shareholder.”
With regard regards to the dysfunctional of the board Moroka says.
“The Board is not functional; the board of the municipal entity, “for reasons best known to individual directors”, has not been having functional meetings due to reprehensible conduct by some of the Board of Directors resulting in the paralysis of the board’s work in that its scheduled business become disrupted leading to non-compliance with legislative prescripts of the relationship between the chairperson and the CEO.”
Responding to the letter in the WhatsApp group on the 19th February 2022, before resigning, Advocate Teboho Manyi, Centlec board member takes a jab at Moroka.
“Colleagues I don’t recall a board meeting that ever discussed the failure to pay MMM as an agenda item.
In fact, this issue precedes this current board. The board has been lamenting for finalization of the issue by arrangement with MMM, set off has been muted around with the chair in his capacity to lead those discussions.”
Manyi went further point how he can never be party to conscious and willful default of legislative.
“Chairperson, you always emphasize good governance and meeting legislative deadlines to avoid non-compliance.
I may be naïve but how as a board do we advocate for conscious and willful default of legislative imperatives on the bases of noncompliance, this bets me, like I said pardon my naivety.”
In conclusion Manyi said as professional he could not allow this to continue before dropping the mic.
“Some of us have to answer to professional bodies on how could this be allowed.”
The SACP in Caleb Motshabi and SAMWU also handed a list of demands on the 22 April 2022, to Mxolisi Dukwana, MEC of COGTA among their demands is calling for the dissolution of the Centlec Board.
“The Centlec (SOC) ltd Board of Directors is dysfunctional from its inception. The chairperson of the board is doing business with parent company which is contrary to the laws that governs the board and the municipality,” reads a statement.
In January 2021 SAMWU accused Moroka of being unfit for office.
“The Centlec Chairperson of the board Mr. Kenosi Moroka is not fit to hold this position and the union strongly believes he has occupied this position irregular as opposed to the charter of the board,
Municipal Systems Act, 2000 (Act no 32 of 2000), Municipal Finance Management Act 2003(Act
no 56 of 2003) and the Constitution of the Republic of South Africa.
The Chairperson of the Board Mr. Moroka is doing business with the parent municipality of the he entity he chairs.
His company was awarded bids during April 2021 in Mangaung and appointed a panel of legal Advisors and Firms of Legal Practitioners for a duration of three (3) years.
Clause 3.5.8(ii) of the Board Charter states that a Board member is not and has not been affiliated with a company that acts as an advisor or consultant to the entity or its related parties, nor is not and has not him/herself acted in such capacity at any time during the past five (5) years.
Clause 3.5.8(iii) Board member is not, has not been affiliated with any significant customer or supplier of the entity or its related parties.
Further clause 3.5.8(iv) states Board member does not currently have, nor had any personal service contract with the entity, its related parties or it’s senior management at any time during the past five (5) years.
Based on the above it is showing that Mr. Moroka is not fit to occupy the position as the Board Charted has been flawed and disregarded.”
With regards to Moroka’s tenure as acting CEO SAMWU said.
On the 31st March 2021, Tshangana & Associate Inc was appointed to determine and/or do investigation to support the Centlec board and MPAC committee in making the appropriate decision to take disciplinary measures or report to relevant authorities.
The report has revealed irregular expenditure of more than fifty(50) million rands. On the 9th of February 2015, a signed letter by Mr. Moroka as the interim Chief Executive Officer confirmed the appointment of companies implicated in the report. Mr. Moroka further signed a letter on the 19 March 2015 as interim Chief Executive Officer confirming the awarding of tenders to the very same companies implicated in the report.
– It was short notice publication of the tender
A source at Mangaung Metropolitan Municipality who spoke on condition of anonymity said ANC must shoulder the blame for the mess at Centlec Board.
“Centlec is like other state-owned enterprises led deployments. This is what ANC does best, they must shoulder the blame.”
Asked why Centlec he said.
“Centlec has a budget of around R2 billion and they treat it as their cash cow.”
The ANC involvement notion is supported by the fact that the ANC met Centlec SOC when it switched power at government buildings.
In his very last text before resigning Advocate Manyi said.
“From the meeting we had at the ANC office after cutting electricity to government buildings chair emphasized the issue that the city and government owed Centlec fact acknowledged by ANC reps.”
The ostrich syndrome never works, and it remains a mystery why Siyonzana and ANC have adopted this approach at Centlec or is it done deliberately?
It remains to be seen if indeed Siyonzana will be dissolve Centlec board and if ANC will recall Siyonzana as factional battles continue because his survival in the vote of no confidence was more like ANC showing its in charge though its not happy with their Mayor.
Qondile Khedama, spokesperson Mangaung Metro and Sello Dithebe, spokesperson for COGTA MEC did not respond to questions.
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