North West Legislature Committee on Community Safety and Transport Management Resolved to Support the Department’s decision to terminate the appointment of Business Rescue Practitioner at NW Transport Investment (NTI) Group
The North West Provincial Legislature Portfolio Committee on Public Works and Roads, Community Safety and Transport Management led by Hon Mmoloki Cwaile resolved to support the decision taken by the Department of Community Safety to terminate the appointment of the Business Rescue Practitioner (BRP) appointed for the North West Transport Investment (NTI). The Committee also resolved to lay criminal charges against those that were involved in the illegal appointment of the BRP outside of the governmnet decion making process and who did not have authority to make such appointment.
This follows a meeting that the committee held with the MEC of the Department of Community Safety and Transport Management over their 2021/22 annual report, 2nd and 3rd quarterly report for the 2022/23 financial year as well as the draft annual performance plan.
The Office of the Premier’s officials facilitated the process of hiring and appointing a BRP Practitioner on the 19 July 2022, as an intervention to assist the NTI through the SOE Advisory Committee. The Portfolio Committee has been asking the Office of the Premier to furnish it with EXCO resolutions and minutes of the meeting that took a decision to appoint a BRP at NTI but these have not been availed to the Committee.
The NTI has had long standing issues, amongst others, the failure to submit Annual Financial Statements (AFS), non-payment of statutory obligations and non-payment of licenses and permit resulting in daily threats of withdrawal of buses leased, due to amounts owed posing threat to wealth and well being of the employees of NTI Group. The BRP Practitioner was appointed to resolve all challenges at the NTI and to turn it around but has not been able to publish a business plan for approval or rejection by the department as representive of Government as shareholder and to this date he has not added any positive impetus to work of NTI Group since his appointment other than threatening NTI Group with liquidation given his conduct and poor performance.
The business plan was supposed to be handed 5 days after his appointment. The BRP has still failed to report on company’s bank accounts, or any bank statements which affects the preparations of monthly bank reconciliations, changes are not communicated to NTI management, with regard to appointment of service providers and that procurement processes are not in line with PFMA and boarders along lines of corruption and fraud.
The Chairperson of the Committee, Hon Cwaile supported the decision by the department to dismiss the BRP stating that, his appointment was unlawful from the beginning and his prolonged stay is irregular according to applicable provisions of the Companies Act.
“The BRP Practitioner was appointed unlawfully and does not have any authority to assume responsibility and role of the Accounting Officer,” said Hon Cwaile
The department told the Committee that it is litigating and pursuing dismissal of the BRP who is facing serious allegations of maladministration, financial misconduct and irregularities at NTI.
Amongst the allegations stated was that the BRP opened a separate bank account and disposed the existing account that NTI was using for his personal and/ or business interests to supply the state-owned bus company with fuel using his son as service provider. Most of employees were paid only 60% of their salary and were also not paid on time.
“We cannot agree to pump money into the NTI and allow the selling and auctioning of properties and assets belonging to the NTI and the people of the North West province,” said Hon Cwaile
The NTIGroup Chief Executive Officer (CEO), Ms Grace Sadiki was dismissed by the BRP which has resulted in the refusal by Gauteng province to continue to pay subsidies to NTI due to non-availability of the CEO as Accounting Authority or officer.
The committee also resolve to convene a joint meeting with SCOPA, Premier, Finance and Local Government Committee to address the matter of NTI where a criminal charges should be laid against all those involved in the appointment of the BRP. Questions were also sent to the Office of the Premier and the NTI, seeking details on the appointment of the BRP, the responses are expected within 48 hours.
Namhla Luhabe
Tel: 018 392 7000
Cell: 079 527 0628
Fax: 086 695 3784
E-mail: namhla@nwpl.org.za
