Ezemvelo suspended CEO enjoying R1.7 million pay-out while MEC avoids answers

The Democratic Alliance in KwaZulu-Natal is concerned that MEC for Economic Development, Tourism and Environmental Affairs Mike Mabuyakhulu is avoiding answering questions on the R1.7 million golden handshake paid to Ezemvelo KZN CEO Dr Bandile Mkhize upon his suspension for underperformance.

The DA has submitted questions to MEC Mike Mabuyakhulu, in an attempt to ascertain the details of this shady settlement deal. We have as yet not received any response from the MEC.

The DA views this pay-out as a serious waste of public money. Dr Mkhize pioneered an ill-informed restructuring of executive and management salaries that had cost Ezemvelo about R20 million. Not only did he disregard Treasury regulations in the restructuring, but he knowingly put the organisation at a financial risk. He flouted all the processes for his own benefit and those that received the increment.

It was only after KZN MEC for Economic Development, Tourism and Environmental Affairs Mike Mabuyakhulu instituted an investigation into the allegations that Mkhize was suspended. Among other things, the task team found that the restructuring process was irregular and unfair. It also found that Mkhize misled the board by lying about the organisation’s finances. For these infringements Mkhize was handsomely rewarded with R1.7 million

Dr Mkhize should have faced disciplinary action, which was the recommendation of the government task team report. He should have been held accountable for all the mischievous decisions he took as the CEO of Ezemvelo.

The R1.7 million handout is nothing but a reward for underperforming and bringing the organisation to its knees. It is disturbingly becoming a norm that underperforming public servants with special ties to powerful politicians receive exorbitant amounts of public money, just so that they can walk away quietly. This begs the question of what Mkhize could be paid to hide or cover up.

The DA will now push for answers to the questions tabled to MEC Mabuyakhulu, failing which we will explore legal routes to obtain the full details of this matter. The money used to pay Dr Mkhize belongs to the people of KZN and as such we need to know the events that lead to this wasteful expenditure.

Issued by Ann McDonnel, DA KZN Spokesperson on Economic Development and Tourism, 12 October 2015