Department of Communications and Digital Technologies stand its ground on the fees to be paid to former SITA board members. Picture: Ian Landsberg / Independent Newspapers
THE Department of Communications and Digital Technologies is putting its foot down in paying “high amount” for fees demanded by three former board members of the embattled State Information and Technology Agency (SITA).
The department now wants the courts to decide on the monies to be paid to the former board members after they could not reach a settlement.
The matter dates to when former minister Mondli Gungubele, who is now the Deputy Minister, dismissed the board of directors in 2023 over the salary of former managing director Bongani Mabaso.
The board members challenged their removal and the court slapped Gungubele with a cost order and ordered the board’s reinstatement.
However, Gungubele had filed an appeal in the Supreme Court of Appeal (SCA), which again ruled in favour of the board members but incumbent Minister Solly Malatsi decided on settling the matter when he joined the department last year.
Director-General Nonkqubela Jordan-Dyan informed the portfolio committee that the department has since paid R1.3m in legal fees of the board members.
Jordan-Dyan said no settlement was reached on the board fees.
“The board members are demanding fees that include consulting fees which the department is not agreeing to.”
Jordan-Dyan said the court ruling had indicated that they must indicate the board members from the period they were dismissed, and that the board members deem that the amount they should be compensated was based on the number of board meetings that the SITA board had held.
“It is an amount which is very high,” she said.
“We informed our attorneys that this matter would need an independent adjudicator. We are asking for a judge to make a determination,” Jordan-Dyan said.
The department’s legal advisor informed the MPs that state law advisor had advised the department to pay the former board members the board fees for the period they were removed from office and the amount should be reasonable.
“This is where we are stuck. We wrote to them and if we don’t agree, let’s go to court.”
The legal advisor said one board member is asking for R1.4m but revised the amount to R1m, while others demanded R900 000 but changed it to R750 000.
“They are beyond what they are entitled to. If it is board and special board meeting fees, it is less than R500 000 – that would be reasonable. We wrote to say we are unable to reach a settlement with them and set the matter down for the court to adjudicate for amount for board fees.”
The saga relating to the former board members take places as SITA is currently without a board of directors.
Jordan-Dyan told the MPs that the term of the previous board ended on January 31, the same day it was the closing date for application for a new board.
“We are in the process of reconstituting the new board. Applications ended on 31 January and (nominations received) are subject to a selection process,” she said.
Jordan-Dyan also said Malatsi has considered the appointment of an interim board.
“This matter is waiting Cabinet approval. We expect to hear an announcement sooner. It is to ensure there is governance vacuum.”
According to Jordan-Dyan, Malatsi was tabling the issue of the interim board at the Cabinet meeting that was currently taking place on Wednesday.
“The minister seeks Cabinet approval. We will be guided by the Cabinet. All we can say is it is imminent,” she said about the interim board’s appointment.
Meanwhile, the term of SITA’s acting managing director expired on February 4, and a new acting person has been appointed from within the entity with effect from the following day.
Last month, Malatsi had expressed his concern over the outgone board’s decision to appoint an acting managing director without consulting him.
He had directed the board to finalise the recommending of suitable candidates for the position before an appointment could be made.
mayibongwe.maqhina@inl.co.za
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