DA calls for set criteria to select Centlec board members

Issued by Eddie Rasoeu – DA Councillor Mangaung Metropolitan Municipality
25 Nov 2022 in Press Statements

The DA in Mangaung Metro Municipality has submitted a motion to establish a framework and criteria for eligibility to serve as a board member of Centlec (SOC) Ltd. The framework is a guideline for the municipality to follow in ensuring previous mismanagement is avoided.

The Mangaung council appointed the Board of Centlec, on 1 November 2020. The board was to serve for three years until 30 October 2023. By 1 June 2022, four Non-Executive Directors had resigned from the board, thereby leaving only two Non-Executive Directors and two Executive Directors.

In retrospect, possibly in recognition of the unlawful nature of their tenure as Board members, the Chairperson and the deputy resigned on 28 October 2022. On 1 November 2022, the Board stood technically dissolved. It is incumbent on the council to constitute another board so as to ensure compliance and optimal operations of the company.

Centlec is a state owned-entity incorporated in terms of the laws of the Republic of South Africa. The Board of a municipal entity must provide effective, transparent, accountable and coherent corporate governance and effective oversight of the affairs of the municipal entity. It must also ensure that the municipal entity complies with all the applicable legislation.

The Board is under obligation to develop strategic policies that are aimed at ensuring the company meet its objectives and performs at its most superlative in the pursuit of the vision of the company as well as the achievement of its strategic objectives for the betterment of the citizens of its area. A core consideration, therefore, is that board members must have the “requisite expertise” to manage and guide the activities of the municipal entity.

The requisite competencies must at the very least operationalise the committees of the Board. The board must include persons of integrity with competencies in engineering, law, human resource management, auditing/risk management, economics, social work, environmental management as well as accounting.

The DA will continue in its efforts to advise the municipality on good governance. The essential service of electricity supply and maintenance cannot be hampered by the appointment of unsuitable board members.