By: Natasha Archary
The entire board of Postbank has tendered their resignations to Minister of Communications and Digital Technologies, Mondli Gungubele over a questionable R140 million software contract.
This comes after a technical glitch on 05 September left hundreds of thousands of pensioners empty-handed, when they didn’t receive their grants.
Postbank’s board members, Thabile Wonci (Chair), Advocate Leigh Hefer-Hendrikse and Martin Mahosi cited the Minister’s interferences and hostility as reasons for their resignations.
The board members claim to have shared their challenges with the Minister in vain, saying he showed no genuine interest to solve the legal issues.
In the joint resignation letter, the board of Postbank said they had been subjected to severe and recurring bad and negative treatment and hostility, that undermined their role and credibility.
“Recent events and unfortunate circumstances between the Minister and the Board have compelled us to make this difficult decision.
There is absolutely no self-respecting board that can perform any meaningful work with the level of external interference, undue pressure and influence that our board has endured over the past couple of months.
The increasingly hostile and oppressive attitude of the Minister towards the Board has become untenable, making it impossible for the Board to continue until the end of its term in 2025, and for some of the members 2027.
This decision to resign from the organisation for which we have worked so hard to ensure it delivers its mandate, particularly to the majority of the vulnerable South Africans, the grant beneficiaries, was not reached lightly.
We understand and accept the implications of this decision.”
Postbank Board in their resignation letter to Minister Mondli Gungubele
However, Gungubele said the Board pre-empted the decision which would have been metered out in the AGM, to hold the Board and the Chair accountable for unlawful conduct.
“One of the fundamental problems has been the continuation of an illegal contract, which was paid no less than R140 million.
And without a justifiable explanation as to why it was allowed to continue.
As a matter of record which I know is transparent, it’s public, Postbank has had a disclaimer for no less than 2-years, no serious-minded nation can allow a financial institution to tolerate that.
Normally, financial institutions are held in the highest regard, compared to any other institution.
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.”
Minister of Communications and Digital Technologies, Mondli Gungubele over the Postbank Board resigning
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