North West Legislature Committees on Community Safety and Transport Management as well as Office of the Premier reject views of departments on the deteriorating status of the North West Transport Investment (NTI)
The North West Provincial Legislature's Portfolio Committee on Public Works and Roads, Community Safety and Transport Management led by Hon Mmoloki Cwaile together with the Portfolio Committee on Premier and Finance led by Hon Aron Motswana vehemently rejects the view of the Office of the Premier, Department of Community Safety and Transport Management together with Provincial Treasury that the appointment of the Business Rescue Practitioner (BRP), Mr Thomas Samson was approved by government.
However the portfolio committee appreciates the fact that the provincial government has resolved to rescue the NTI Group and is seeking to raise funds to the tune of R500 million to inject into the entity for payments of both salaries of employees and the creditors. The committee also noted and appreciated the active intention to remove the BRP who was irregularly appointed and not able to add any positive impetus on desire to rescue the entity.
This was during a joint meeting that both portfolio committees held with the Office of the Premier, Provincial Treasury and the Department of Community Safety and Transport Management to register progress registered on the status of the North West Transport Investment (NTI).
The Committee noted that no due processes were followed in the appointment of the BRP which was not done as per the resolve of the Executive Council (EXCO) nor through the board resolution.
“The Committee sought to open a criminal case with the Department of Police for Criminal Investigations (DPCI) known as the Hawks for this reason and amongst others on the criminal conduct of the BRP which include flawing processes of supply chain and allegedly awarding tenders to his family members and erroneously disposing assets of the entity,” said Hon Cwaile.
The Committee also rejected a submission that the EXCO, who is the shareholder of NTI, that it had no role in processes of business rescue given provisions stated in the Companies Act, 2008.
“The Companies Act, 2008, provides for shareholders as affected person to enjoy consultative rights which cannot be treated perfunctorily or as just mere formality and that the shareholder has the right to participate in business rescue; and may reject the business rescue plan especially if it affects; or alter rights associated with class of securities; and may propose the development of alternative plan to acquire interests of any or all creditors.
“The fulcrum of these rights remains that shareholders are permitted to vote on the business rescue plan that seeks to change the rights associated with class of securities,” said, Hon Cwaile.
The committee’s posture on NTI remains unchanged and will continue to rally support behind the Department of Community Safety and Transport Management to litigate against BRP and ensure his swift removal. The committee also noted the appointment of the new legal team which is working on review of the litigation work already done and actively intended at challenging the appointment of the BRP and seeking to interdict and restrain him.
Hon Cwaile resolved that the Provincial Treasury should conduct internal audit on NTI Group and investigate and validate amounts claimed to be owed to creditors; also supported the decision of provincial government to seek to make budget adjustments to find reasonable amount of funds to inject into NTI Group for salaries of workers and payments of the creditors.
“The BRP has deteriorated the financial health of the entity and we would like to express our disappointment in the provincial government’s delayed actions to redress and care about the plight of the workers with one of the workers committing suicide due to the frustrations of non-payment,” said Hon Cwaile
Hon Motswana requested the Department of Community Safety and Transport Management and the NTI Group to avail all required records, reports and documentation to the committee within 14 days to initiate investigations by Special Investigative Unit (SIU) that would look into the mismanagement, corruption and all acts of malfeasance at the NTI.
“We demand records of all processes followed on the appointment of the BRP and reject the view of abandoned lawyers who sought to help in retaining the BRP,” Hon Motswana.
Namhla Luhabe
Deputy Manager - Communications
North West Provincial Legislature
Tel : (018) 392 7000
Cell: 079 527 0628
Email : namhla@nwpl.org.za
