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Former Postbank board member takes Gungubele to court

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A former non-executive member of the Board of Directors of Postbank is hauling Communications and Digital Technologies Minister Mondli Gungubele to court, arguing that he unlawfully and unconstitutionally removed her from the board in September.

According to lengthy papers filed in the North Gauteng High Court in Pretoria, the reasons furnished to her for her removal are that Gungubele could not “find a record of her objecting to the Electronic Connect contract which was appointed irregularly” and that she, along with the board, had failed to exercise oversight in the manner required by her fiduciary responsibilities to Postbank.

The former supplier used by Postbank to pay social grants, Electronic Connect, has been making headlines over its “payment switch” software which adversely affected grant recipients following a glitch in September.

The axed board member argues in papers before the North Gauteng High Court in Pretoria that the suggestion that she flouted and disregarded procurement processes is “grossly unfounded”.

She adds that the Minister took his decision in “bad faith” and didn’t follow due process.

As a result, she is seeking to be reinstated pending the resolution of her dispute with the Minister by the President.

She is also asking the court to declare her removal unlawful and unconstitutional and have it set aside.

She also seeks a public apology for her “unlawful removal” as well as costs.

In September, Gungubele said measures would be put in place to prevent errors from recurring in the future.

The video reports more on the social grants payment story:

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