South African Broadcasting Corporation (SABC) CEO Madoda Mxakwe has denied that he is the accounting authority of the SABC in the absence of the Board.
Mxakwe was designated by the Ministry of Communications with the approval of the Treasury. However, it turned out that Mxakwe did not sign the designation letter.
At the centre of the confusion is a paragraph in the designation letter to the CEO that “they may not enter into significant and long-term commitments while the board is still forthcoming.”
Mxakwe explains, “We brought both heads of legal from both institutions and Advocate [Ntuthuzelo] Vanara. In no uncertain terms raised concerns about the said paragraph because I don’t want to assume powers that I do not have. And then the question about what is my role here. I’m here as the accounting officer not the accounting authority of the SABC. So, I’m here as the accounting officer of the SABC, as the Group Chief Executive Officer and I had made it very clear. I had consulted with the CFO and the COO on that paragraph. And as said by Adv Vanara, it is going to limit us in terms of the very submissions that are still outstanding since October.”
He says the Executive has written to SCOPA to ask whether they still needed to appear without an accounting authority.
Earlier the Deputy Director-General responsible for oversight on State Owned entities in the Department of Communications and Digital Technologies Omega Shelembe told SCOPA that Treasury gave clarity.
“After that, the Department then consulted with National Treasury who granted the approval for the designations and the Treasury has since advised that that paragraph is not prescriptive. It was essentially advisory to the CEO that in all likelihood he should not enter into those contracts but should the need arise, that those be entered into, he should do so in terms of good corporate governance practices. In other words, taking into account the recommendations of EXCO and making sure that the decisions are sound and correct when he effects them.”
Democratic Alliance (DA) Member of SCOPA Alf Lees raised issues of conflict of interest if Mxakwe is given the powers of a board.
“I mean, it seems just outrageous that let’s just assume that the GCEO accepts the appointment. He is party to making decisions in the EXCO and now he is going to approve them as the designated accounting officer. I mean that’s a huge conflict of interest. It cannot be. It just cannot be. The board must surely be appointed. We have heard nothing to justify the delays. We have heard the Deputy Minister tell us that the delay lies with the President.”
As the meeting could not proceed, SCOPA Chairperson Mkhuleko Hlengwa lambasted the SABC Department.
“But it’s not right that we are operating at to be dealing with kindergarten mistakes like this one. So colleagues the CEO is very categoric, he is not the accounting authority. So, in the absence of an accounting authority, we cannot proceed. But there have to be consequences for this. The SIU is here for this meeting. The SIU was here in November. Who must foot the bill for this wasteful expenditure that the SIU has been carrying”
VIDEO: SABC appears before SCOPA over financials
The Deputy Minister of Communications and Digital Technologies, Philly Maphulane had to apologise to SCOPA. He says he was surprised to learn that Mxakwe is not the designated accounting authority.
“Immediately as we leave this meeting we will have to meet ourselves and take stock of exactly what happened here, which for me was a big embarrassment, that I come here this morning under the impression that the designation has been made of the accounting authority and there is an accounting authority only to learn this morning when we are here despite the fact that we had a conversation yesterday. So it is an embarrassment Chair. I don’t know who is going to apologise for it. I guess as a leader of the delegation, on behalf of everybody, express our apology to yourself and to the committee for the time that has been wasted.”
As the confusion is continuing on who has the power in the absence of a board, President Cyril Ramaphosa has been dragged to the Constitutional Court by Media Monitoring Africa, to force him to appoint the incoming SABC Board immediately.
The National Assembly approved the names of the twelve recommended candidates on the 6th of December last year. And National Assembly Speaker Nosiviwe Mapisa-Nqakula sent the names to the President on the 20th of December for the appointment.
