Staff reporter
Bloemfontein – Developments at the Free State Gambling, Liquor and Tourism Authority (FSGLTA) have raised serious concerns about governance and the institutional arrangements that could push the entity into uncharted territory.
This follows a series of articles highlighting a high vacancy rate that reportedly costs the authority R5 million in acting allowances, as well as a legal bill running into million arising from unfair dismissal cases it has lost.
New revelations have also brought the authority’s licensing backlog into focus.
In an ideal institutional setup, three key departments: Human Resources, Legal Services and Gambling, would operate independently while complementing and holding one another accountable.
Human Resources would oversee recruitment, Legal Services would advise on legal matters, and Gambling would handle licensing and related regulatory functions, with the respective general managers reporting directly to the chief executive officer (CEO).
At the FSGLTA, however, these functions fall under one official, raising questions about the concentration of responsibilities and the effectiveness of internal checks and balances.
According to the transcript of Pali Magashule’s hearing at the Commission for Conciliation, Mediation and Arbitration (CCMA), Mikateko Mohale introduced herself as the General Manager: Corporate Services and Operations.
In her own words, she said: “I am the general manager for corporate services and operations. I oversee in terms of corporate services Human Resources unit, IT and Legal.
“In terms of operations, I oversee liquor as well as gambling.
“So all the managers in those respective units report directly to me and I report to CEO.”
A closer examination of the authority’s organogram suggests that Mohale’s portfolio extends even further.
She is also responsible for Compliance, Enforcement, Investigation, Audit and Gaming Control, effectively placing a broad range of corporate, operational and regulatory functions under her oversight.
Below is the organogram.
The extent of these responsibilities raises questions about the concentration of decision-making power within the authority and whether the current structure provides sufficient independent oversight.
Mohale’s testimony at the CCMA, coupled with the decision to pursue an appeal despite legal advice reportedly obtained by the authority, warrants further scrutiny.
The authority subsequently lost the appeal, raising questions about the decision-making process and the accountability of those responsible.
The matter is particularly significant given that the MEC established an appeals committee following concerns about decisions made by the authority.
CCMA papers further indicate that LabourNet represented the authority without a board mandate and was subsequently required to withdraw.
The circumstances surrounding the appointment and withdrawal raise additional questions about the authority’s legal representation and internal governance procedures.
How is it humanly possible that a law firm can work without board resolution only to be told to withdraw and its business as usual?
The authority lost the case with costs, while Magashule is still awaiting his return to work. No one has ever been held accountable.
Up next next us key appointments, rent and board failures
Mikateko Mohale, the FSGLTA’s General Manager for Corporate Services and Operations had not responded by the time of publication.
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