The suspended president of the Black Management Forum (BMF), Mpho Motsei, has strongly condemned his colleagues at the organisation, accusing them of conspiring against him.
This comes after an explosive report by Sunday World at the weekend detailing that the BMF committee of stalwarts led by the MK Party MP and former BMF long-serving president, Mzwanele Manyi, had found that the board members had irregularly awarded themselves fee increases without obtaining shareholder approval. This was in conflict with Section 66 of the Companies Act.
Motsei mounts fightback
Based on the interim report that Sunday World has seen, Motsei hit back, saying that for some time, the BMF has been experiencing internal leadership battles.
“This should not come as a surprise in a country that has a prolonged history of state capture and institutional corruption across different sectors. I have been on top of these shenanigans and am steering the ship in the right direction, disallowing those who seek to capture the BMF for their selfish interests. I legally remain the president of the BMF,” he said.
The embattled Motsei said that there were many attempts at illegal meetings held where he was discussed to stifle his work, which he claimed was of good governance and his attempts to preserve the good name of the BMF.
“I can confirm that the BMF board of directors has taken a series of precautionary steps to safeguard the organisation’s governance,” he said.
Suspension letters to board members
On Sunday we reported that Motsei had also issued suspension letters to seven board members, including the acting president, Lilly Moabi, Lucky Madikane, Bhekisisa Mthembu, Oagiseng Bojang, Nathi Nkwanyana, Paseka Letsatsi and Jeremiah Klass.
“These decisions were made following formal board resolutions and are intended to do one thing above all [to] protect the integrity of the organisation [and] allowing the investigation to proceed openly and without interference. The BMF hopes to preserve the confidence members and partners have placed in it over many years. It is important to stress that these are precautionary measures only, not findings of guilt, and no conclusions have been drawn about any of the individuals. Throughout this process, the BMF remains fully operational. With me at the helm of the BMF. BMF governance structures continue to function as they always have, guided by the organisation’s constitution and its long-standing principles,” he said.
He added: “For 50 years, the BMF has stood for ethical leadership, accountability, and transformation. The board believes that these same standards must hold true within its own walls, not only in the sectors it serves. Good governance starts with us. We have always called for ethical leadership and accountability in both the public and private sectors, and we owe it to ourselves to live by those very standards.”
Controversy over dividend payout
The committee also found that in July 2024, the board declared a R31-million dividend without performing a solvency and liquidity test as required by Section 46 of the Companies Act. The section stipulates that a company can pay dividends to shareholders only if it is financially healthy.
The BMF’s investment arm has a portfolio that includes a 1.3% stake in Nedbank, 1.2% in Raubex and 25.1% in the Rosslyn Hub Development Company.
BMF stalwarts concluded that the declaration of a dividend was in breach of Section 46 of the Companies Act and raised concerns about the board of the investment division’s discharge of its fiduciary duties.
“Based on the evidence available to it, the committee believes that a prima facie case exists, warranting further investigation into the conduct of those directors who participated in and approved the declaration of the dividend.
“All BMF nominees to the BMFI board should be afforded a reasonable opportunity to respond to the allegations and provide any mitigating or explanatory evidence.”
Increase of directors’ remuneration
According to the report, BMF Investments directors, among them forum president Mpho Motsei and acting chairperson Lebogang Phasha, also approved a 25% increase in their own remuneration.
“Based on the evidence and information received by the committee, it is our considered view that a prima facie case exists that members of the BMFI board may have acted in contravention of the Companies Act through the approval and implementation of increases of their own board remuneration.
“The evidence before the committee is sufficient to warrant a formal investigation and disciplinary process.”
It recommended that the board institute an independent disciplinary process against the implicated board members.
The report also flagged governance issues relating to the main board’s composition.
Mpumalanga chairperson studying abroad
Among the issues investigated was a complaint that Thulani Mlangeni, the Mpumalanga chairperson, was studying in Europe and had been absent from the province for a long time.
The committee said it had not been provided with evidence that Mlangeni, who is also a board member of BMF Investments, continued to serve as Mpumalanga chairperson. That meant he should be regarded as having vacated the position and cease to be a member of the board and its structures.
It further found that the BMF’s Student Chapter had not convened a conference since May 2024.
The committee said that contravened the organisation’s memorandum of incorporation and therefore, Richard Molefe, the chairperson of the Student Chapter, should be removed from the role as his term of office has expired.
Limpopo chairperson not properly elected
The committee said the chairperson of the BMF in Limpopo, Daisy Raphela, had not been properly elected to the role. Motsei, the BMF president, was chairperson of the Limpopo structure until 2024.
According to the report, when Motsei vacated the Limpopo office, a provincial annual general meeting should have been held to elect a new chairperson.
It has since recommended Raphela’s removal from the role and BMF board until an AGM had been held. Motsei was also taken to task for using the name of the organisation in a legal battle with former board member Papama Mnqandi.
In May, Mnqandi wrote a letter to the board accusing Motsei of orchestrating a BMF heist and failing to act on corruption in the organisation.
In retaliation, Motsei filed a R2.5-million defamation lawsuit against Mnqandi in the South Gauteng High Court, for making “false and damaging allegations” in the letter.
The committee of stalwarts has since recommended that the BMF president be reprimanded for using the organisation’s name in his personal battles.
““Failure to maintain this distinction may create the impression that the organisation has endorsed, authorised or become party to a private dispute, thereby exposing it to unnecessary legal, reputational and governance risks.”
Stalwarts call for probe into Motsei
It recommended that the BMF set up a disciplinary committee to probe Motsei and all affected directors in relation to the various allegations.
In a letter informing Motsei of his suspension, BMF acting president Lilly Moabi said the board had resolved to adopt the committee’s report and implement its recommendations in full. As such, he would be facing an independent disciplinary hearing.
Moabi declined to comment when asked about Motsei’s claim that he is still the president of BMF.
BMF managing director Monde Ndlovu did not answer his phone when called.
Sunday World understands that the organisation has taken a posture of not responding to the media after our explosive report on Sunday with the aim of dealing with matters involving the organisation internally.
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- The suspended president of the Black Management Forum (BMF), Mpho Motsei, has strongly condemned his colleagues at the organisation, accusing them of conspiring against him.
- This comes after an explosive report by Sunday World at the weekend detailing that the BMF committee of stalwarts led by the MK Party MP and former BMF long-serving president, Mzwanele Manyi, had found that the board members had irregularly awarded themselves fee increases without obtaining shareholder approval.
- This was in conflict with Section 66 of the Companies Act.
- Motsei mounts fightback Based on the interim report that Sunday World has seen, Motsei hit back, saying that for some time, the BMF has been experiencing internal leadership battles.
- “This should not come as a surprise in a country that has a prolonged history of state capture and institutional corruption across different sectors.
