The North West Development Corporation (NWDC) has been thrust into a governance crisis, with tensions escalating between MEC for economic development, environment, conservation and tourism Bitsa Lenkopane, the interim board and CEO Mojalefa Nale.
The confrontation, which is expected to play out in the Mahikeng High Court on
Thursday, stems from the MEC’s appointment of an interim board to restore
oversight and accountability at the NWDC, which has been plagued by financial instability and governance deficiencies.
On July 7, Lenkopane exercised her authority as the shareholder representative of the North West government to appoint an interim board.
She explained in court papers: “I exercised my authority as the shareholder representative of the North West provincial government and appointed suitably qualified professionals to fill the vacancies by appointing them as members of the interim board for a period of six months, to restore oversight and stabilise operations.”
However, said Lenkopane, Nale initially resisted the authority of the interim board, acting in defiance of the statutory governance framework.
According to the MEC: “The chief executive officer initially acted in defiance of the statutory governance framework, purporting to exercise authority inconsistent with the provisions of the PFMA outlined above and the Shareholder Compact.”
Under pressure from Lenkopane and the interim board, Nale eventually issued a formal letter acknowledging the board’s authority.
Lenkopane noted: “The CEO subsequently issued a formal letter…wherein he expressly acknowledged that the board is the accounting authority of the NWDC and undertook to
comply with its decisions going forward.”
Despite this acknowledgement, Nale later questioned the legal status of the interim board in a letter dated August 29.
This uncertainty prompted the chairperson of the interim board, Gabaiphiwe Tabane, to request a meeting with the MEC, which took place on September 1.
Reflecting on the meeting, Lenkopane stated: “I was surprised as to what caused the uncertainty regarding the legal status of the interim board, as I am the shareholder representative that is authorised to appoint it as the accounting authority in terms of Section 8(2)(a) read with Sections 15 and 68 of the Companies Act and read with Section 1(d) of the PFMA (Public Finance Management Act), which are clear and unequivocal.”
The governance crisis deepened when Tabane tendered his resignation on September 11, citing the ongoing uncertainty.
The MEC lamented: “I further wish to state that this uncertainty has further led to the resignation of the chairperson, Mr Gabaiphiwe Tabane, who tendered a letter to that effect on 11 September 2025.”
In response to the escalating crisis, Lenkopane filed an urgent application with the high court to confirm the validity and lawfulness of her appointment of the interim board.
She emphasised: “An urgent declaratory order will bring to an end any uncertainty that has arisen in respect of the governance of the NWDC.”
The court ruled during Lenkopane’s urgent interdict on September 23 that the appointment of the board was valid and lawful, that the board was properly appointed and that they were the legitimate accounting authority pending the conclusion of the hearing on the review of the decision to appoint the body.
Nale, together with his team of executives and senior managers, was also expected to report to the board.
The outcome of the court application this Thursday will be pivotal in determining the future governance of the NWDC and restoring stability to the embattled entity.
