CompaniesPREMIUM

Lawyer aims to block Blade Nzimande's reappointment of Acsa CEO

Court order sought to halt reappointment of Acsa CEO

My way: Acsa’s Bongani Maseko has urged staff to use official channels, not the media. Picture: SUPPLIED
My way: Acsa’s Bongani Maseko has urged staff to use official channels, not the media. Picture: SUPPLIED

Former Airports Company SA (Acsa) group legal counsel Bonginkosi Mfusi is seeking a court order against Transport Minister Blade Nzimande to prevent the reappointment of the state-owned airports operator’s CEO, Bongani Maseko.

Maseko’s term of office expired at the end of 2017 but it was extended to May 18 2018.

A vocal group at Acsa calling itself the "concerned employees group" is also opposed to Maseko remaining in the job.

Its opposition is based on the findings of three separate forensic reports produced by advisory group Deloitte, attorneys Norton Rose Fulbright and Dr VS Ncube Consulting, in which Maseko is accused of a range of irregularities including corruption, dereliction of duty and serious violations of the Public Finance Management Act.

These findings have now been confirmed by a fourth advisory group, Open Water Advanced Risk Solutions, according to the group of concerned employees, identified only by its spokesman, Zinhle Lolo. Although the Open Water report expresses doubt about the appropriateness of the appointment of Dr VS Ncube Consulting, its recommendations have been accepted.

The report and recommendations against Maseko and others were adopted by Acsa’s board on February 3 2017, specifically that Maseko be suspended pending the outcome of a disciplinary hearing. No action has been taken by Acsa or the department as Acsa’s 74.6% shareholder.

Investment company and minority shareholder African Harvest (4.1%) has also demanded that Nzimande remove Maseko. African Harvest’s demand was prompted by a note, dated February 28 2018, to Nzimande from the Acsa board’s audit and risk committee expressing its "serious concern". The committee had again notified the minister of a breach of corporate governance and irregular and unlawful conduct at the entity.

Mfusi’s employment was terminated at the end of 2017 in what he described as an "unfair dismissal". This matter is before the Labour Court. He is also seeking an interdict against Acsa and the minister to compel the entity to provide reasons why Maseko has not been suspended or disciplined. In his latest lawsuit, Mfusi argues in papers before the High Court in Pretoria that the reappointment or extension of Maseko’s role as CEO would be irregular until the court has ruled in this matter.

Acsa’s board of directors has not been functional since the resignation of two nonexecutive directors, Siyakhula Simelane and Steven Mabela, who constituted the audit and risk committee of the board. Acsa’s memorandum of incorporation requires a nonexecutive majority on the board.

The directors quit following the appointment of Deon Botha as nonexecutive chairman by Nzimande, which Simelane and Mabela described as "political overreach". Botha represents the Public Investment Corporation, which owns 20% of Acsa.

His appointment came after the minister’s interview with Radio 702 in which Nzimande alluded to Gupta links to the efforts to remove Maseko.

Acsa and the department have consistently avoided giving reasons for their failure to act against Maseko.

blomn@businesslive.co.za

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Comment icon