Business Day

Nedlac suspends executive director

- Theto Mahlakoana Political Writer mahlakoana­t@businessli­ve.co.za

The National Economic Developmen­t and Labour Council (Nedlac) has placed its executive director Madoda Vilakazi on precaution­ary suspension pending an investigat­ion into his leadership at the organisati­on.

The National Economic Developmen­t and Labour Council (Nedlac) has placed its executive director, Madoda Vilakazi, on precaution­ary suspension pending an investigat­ion into his leadership at the organisati­on.

The suspension is the second at the labour department entity months after its highly praised work on the formulatio­n of the national minimum wage policy, which was recently enacted.

Although Nedlac would not provide the reasons for the suspension, Business Day understand­s Vilakazi was suspended for failing to prevent financial mismanagem­ent and incidents of conflict of interest. He is also alleged to have been implicated in the irregular appointmen­t of service providers.

In November, Vilakazi placed Nedlac CFO Mfanufikil­e Daza on suspension for allegedly not adhering to the body’s procuremen­t policies, among others.

At the time Vilakazi pleaded innocence, saying the financial irregulari­ties at Nedlac were being blown out of proportion.

VILAKAZI PLEADED INNOCENCE, SAYING THE FINANCIAL IRREGULARI­TIES AT NEDLAC WERE BEING BLOWN OUT OF PROPORTION

The management committee decided to place Vilakazi on suspension in December while “internal processes on both suspension­s unfold and are considered by relevant structures”, Nedlac spokespers­on Tidimalo Chuene said.

She said head of programme operations Nobuntu Sibisi will act as executive director.

In November Nedlac’s management committee received the findings of a forensic investigat­ion that was launched after auditor-general Kimi Makwetu flagged the body’s irregular expenditur­e and failure to act in line with the Public Finance Management Act.

The report recommende­d that “disciplina­ry action” be taken against Vilakazi and Daza.

Although labour minister Mildred Oliphant said at the time that the matter would be concluded in four weeks, that timeline has not been met.

She said the management committee comprising of labour, business and government representa­tives had moved swiftly to deal with the matter and “all officials concerned had been called to account”.

However, Nedlac has stalled on a similar case involving former executive director Herbert Mkhize, who was found to have used the organisati­on’s funds for personal purchases.

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