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De Lille defends dissolution of tourism board amid legal and fiscal breaches

Minister cites unlawful resolutions, governance failures and reckless expenditure in parliamentary briefing

Tourism minister Patricia de Lille has dissolved the SA Tourism board over unlawful conduct and financial mismanagement, appointing an interim team to restore governance and stabilise the entity. Picture: SANDILE NDLOVU
Tourism minister Patricia de Lille has dissolved the SA Tourism board over unlawful conduct and financial mismanagement, appointing an interim team to restore governance and stabilise the entity. Picture: SANDILE NDLOVU

Tourism minister Patricia de Lille has defended her decision to dissolve the board of SA Tourism, citing unlawful conduct, procedural violations and reckless financial management as grounds for intervention.

Addressing the portfolio committee on tourism in parliament on Tuesday, the minister said the board’s actions had compromised the integrity of the institution and exposed it to legal and fiscal risk, necessitating executive oversight in terms of section 85 of the constitution and the Tourism Act.

Central to the minister’s submission was a resolution passed by the board on August 1, which purported to appoint a member as “board representative” with powers akin to those of a chairperson.

De Lille described the resolution as taken without authority, noting the meeting in which it was adopted failed to comply with the Tourism Act, which prescribes the lawful procedure for board decision-making.

“The board acted unlawfully. It exceeded its powers when it took a resolution dated August 1 ... the very meeting where the impugned resolution was taken did not follow the lawful procedure,” she told MPs.

The minister further flagged the board’s unilateral suspension of CEO Nombulelo Guliwe as procedurally invalid, stating she wasn't consulted and was awaiting legal advice on the matter.

“I did not block disciplinary action. I requested further information and referred the matter to the minister of public service & administration,” she said, adding the board’s decision to proceed without concurrence contravened established governance protocols.

Financial oversight failures were also raised. De Lille reported that R900,000 of the R1.44m annual budget allocated for board operations had been spent within six months, primarily on frequent meetings and contract extensions beyond their lawful term.

The auditor-general had repeatedly flagged the board’s failure to fill critical vacancies, including the CFO post, which remained vacant after a resignation in August 2024. The minister confirmed she had issued formal reminders to the board in June and July 2025 to address these deficiencies, which were ignored.

In response to the governance breakdown, De Lille dissolved the board and appointed six individuals with governance expertise to oversee SA Tourism’s affairs pending the installation of a new permanent board. She assured the committee the interim arrangement was constitutionally sound and sectorally stabilising.

“I want to assure this portfolio committee there’s no crisis. I have appointed a group of six South Africans to handle the affairs of SA Tourism up until I have appointed a permanent board,” she said.

The minister’s remarks follow a series of controversies at SA Tourism, including the aborted R1bn Tottenham Hotspur sponsorship deal, which was terminated in 2023 after a public outcry and a Special Investigating Unit probe.

That investigation recommended the declaration of certain board members as delinquent and the recovery of funds.

De Lille referenced the matter as part of her broader commitment to fiscal accountability and institutional reform, stating: “Every law in this country matters. Every cent of the taxpayers matters. And part of protecting the public purse is to ensure due process and governance is non-negotiable.”

While the minister maintained the dissolution was necessary to restore credibility, the long-term implications for SA Tourism’s operational continuity and stakeholder confidence remain under scrutiny.

Tourism contributes about 3% to GDP and employs hundreds of thousands of locals. Analysts have warned that instability at the entity could undermine efforts to grow international arrivals, particularly in the post-pandemic recovery phase.

The minister concluded by reaffirming support for the Tourism Growth Partnership Plan being implemented in collaboration with private sector stakeholders.

An execution lab has been established to monitor delivery across five strategic pillars. 

roost@businesslive.co.za

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