Durban - Jobs for pals, fat cat pay hikes, an autocratic boss who sidelined those who stood up to him and a board of directors seemingly hoodwinked into approving massive pay-scale adjustments for thousands of conservation staff.
These are some of the allegations emerging from a government-appointed task team looking into the affairs of the conservation agency Ezemvelo KZN Wildlife.
On Thursday, despite giving reasons why their suspensions should not be formalised and extended, chief executive Bandile Mkhize and chief financial officer Darius Chitate were told by Ezemvelo’s board that they would be kept off the job pending the outcome of disciplinary inquiries.
Board chairman Comfort Ngidi said
Ebrahim Mulla, the finance manager, had been appointed as acting chief financial officer and Bheki Khoza, the executive director, as “caretaker” chief executive, until the board finalised the appointment of an acting executive.
Ngidi said the board was working towards having the staff repay their inflated salaries. They were trying to work out the amounts, taking into account factors including how much had been paid to the taxman.
In a 300-page report, task team members Siphiwe Madondo, Nombuso Kheswa and Roshan Morar found that Ezemvelo’s top dogs and a handful of other employees benefited unduly from handsome pay hikes at the expense of almost 3 000 ordinary staff.
The damning report followed an investigation done at the behest of Economic Development, Tourism and Environmental Affairs MEC Mike Mabuyakhulu.
It found there was a “vast increase in salary packages” for executives even though their new job responsibilities had hardly changed.
Though the team’s terms of reference were limited, it called for a much broader investigation of claims of “nepotism, favouritism, breaches of company policy and procedures and supply chain management issues”.
And, apart from recommending disciplinary action against Mkhize and Chitate, the task team also found that the board of directors had failed to exercise adequate oversight of Ezemvelo’s financial affairs, exposing it to significant financial risk.
It said the provincial government should consider reconstituting the board to circumvent an “over-reliance” on the current chief executive and to consider whether certain board members and board committee chairmen had the “necessary qualities to act in the best interest of the organisation”.
“The board failed to act as reasonably expected in compliance with its fiduciary and legal duties,” the team found.
The restructuring was “unfair, unlawful and irrational” and rushed through in a way that had damaged the morale and productivity of staff.
Mkhize’s leadership style should also be investigated as it was “glaringly obvious” that he sidelined key executives who should have been at the centre of a restructuring process that eventually blew up in June when staff went on strike.
Board member Armstrong Ndlela said: “Executives were well paid and the labour was getting crumbs and now they wanted what they deserved.”
Whereas Mkhize first gave an assurance that the restructuring would cost no more than R3.5 million, this kept moving up – first to R6m, then R11m, R41m, R71m – and possibly R130m.
Task team chairman Madondo remarked: “Everyone is passing the buck and no one wants to own up... the problem here is that everyone is assuming that everyone knows what is going on – but everyone is doing their own thing.”
Chitate knew there was not enough money to push up pay scales for more than 3 000 staff, but would not confront Mkhize.
“When the CEO said, ‘Go look for funds,’ did you not tell him you do not have the money?” asked Madondo.
“That would be a career-restricting move,” responded Chitate.
On criticism of his board, Ngidi said board members had been asked to attend a course accredited by the Institute of Directors to gain additional training around financial governance.
“At the time this occurred it was a fairly new board... From the board’s point of view you have to take what your CEO tells you as correct, although there might be a suggestion that the CEO might have been a bit economical with the truth as regards funding.”
Mkhize said he could not comment. – Extra reporting by Sharika Regchand
The Mercury