Communications and Digital Technologies Minister Solly Malatsi has appointed observers to oversee the role of the board when conducting job interviews for the crucial roles of the State Information Technology Agency (Sita) chief executive, chief financial officer and chief operations officer.
Though the move was welcomed by Malatsi’s political party the DA, a corporate governance expert argued it does not make sense to for the minister to appoint observers to play an oversight role on a board whose main function is to do the same.
A letter penned by Malatsi recently, and seen by Sunday World, stated the key executive positions were crucial to the
ongoing success and governance of state-owned entities.
“In line with the recommendations outlined in the National Planning Commission’s (NPC) report on governance reforms within state entities, we are placing particular emphasis on transparency, fairness and accountability in all recruitment processes,” Malatsi wrote.
“This step aligns with the NPC’s priority to enhance governance oversight, particularly within strategic SOEs, to mitigate risks related to irregularities and ensure the highest standards of fairness and compliance throughout the process,” the letter reads in part.
“Their involvement is to ensure that the recruitment is conducted in full adherence to best practices, including alignment with the government’s outcome-based frameworks for governance and reform.
“This approach is crucial to reinforce our shared commitment to integrity, good governance, and public accountability, as outlined in the Medium Term Development Plan priorities.
“The presence of an observer should in no way diminish the authority or responsibility of the board but rather serve to support and validate the board’s efforts in ensuring a transparent and effective recruitment process,” said Malatsi.
Corporate governance expert Simo Lushaba said the board of directors should be able to apply its mind, and independently
decide who they will appoint to fill those vacancies.
“I am worried with the issue of oversight because the duty of the board is to exercise oversight. This (Malatsi’s appointment of the observers) could amount to outsourcing the very same job of the board.
‘“The question becomes, if you don’t trust the board enough for it to sufficiently play oversight, why do you have them as a board?” asked Lushaba.
He said if Malatsi is not happy or lacks confidence in the board, he is “more than welcome toremove them”.
Malatsi told Sunday World: “Let me be clear, this is not interference. The role of the observers is to ensure that recruitment processes are fair, from short-listing all the way to the final recommendations to the board.’.
He noted that the appointment of observers, which will not cost the government a cent, was welcomed by the leadership of entities, including the Sita board.
DA member of parliament Tsholofelo Bodlani welcomed the appointment. “On the appointment of observers; I believe this is a welcomed change that will ensure that the minister is well vested with all the entities, especially considering the size of the department.”
Communications and digital technologies portfolio committee chairperson Khusela Sangoni said the CEO, COO and CFO are appointed by the board after consultation with the minister and approval from cabinet.
“The board is within its rights to determine that recruitment and selection process as long as it does not fall foul of the relevant laws,” she said.
