The South African Postbank’s board of directors and chairperson are facing allegations of resigning prematurely to avoid being held accountable for alleged misconduct.
Minister of Communications and Digital Technologies Mondli Gungubele took this stance following a recent ‘technical glitch’ that caused significant delays in grant payouts to various social grant beneficiaries, including the elderly, disabled and child support recipients.
Also read: Here’s what caused the social grant payment ‘glitch’
The minister’s decision to dismiss the board was prompted by allegations surrounding a questionable contract worth R140 million and the outcomes of a forensic investigation conducted by KPMG.
The investigation revealed irregularities in service provider payments and highlighted a lack of proper procurement processes within Postbank.
Mondli Gungubele stressed the need for someone to accept responsibility for these issues and questioned the timing of the board’s resignations ahead of the annual general meeting (AGM).
He argued that addressing governance concerns within Postbank was of paramount importance, despite claims from board members that he had created a hostile environment.
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Picture: Khumbulani Nene / Facebook