SHOULD AYO HAVE TO REPAY A DEFUNCT PIC?
THE globalised economic environment of the 21st century requires a leadership that combines masculine and feminine leadership qualities.
The masculine leadership model alone is not adequate for managing techno-savvy knowledge workers. Women represent 50% of the under-utilised talent pool, and the fastest-growing market for consumer goods and services.
This market can no longer be ignored by companies that want to get ahead of their competitors in a highly competitive, globalised economic environment.
To its credit, the democratic government has introduced gender equality policies and laws.
This has resulted in increased participation by women in the workplace to almost 50%.
Unfortunately, the change in gender composition of the workforce has not been coupled with a change in the workplace culture to accommodate the needs of working women.
Working women are expected to change their behaviour to fit into a work culture designed by men to meet the needs of women.
The time has come for women and men together to build a new, gender-sensitive workplace culture.
The corporate ladder for most women ends in middle-management, while their male counterparts continue to climb the corporate ladder to the top executive level and boardrooms because leadership continues to be associated with masculine qualities.
The reasons often cited for the limited opportunities for women’s advancement to top leadership positions are lack of confidence and lack of interest in top leadership positions because of women’s commitment to their families.
The criticism and debates of the Women Empowerment and Gender Equality Bill focused on the legislated gender quotas, and failed to address the potential economic benefits of increasing the gender diversity in leadership teams of corporates.
The equal participation of women in the workforce has contributed to an increase in women’s economic power and more women are responsible for making the purchasing decisions.
More than 60% of students graduating from SA’s tertiary institutions are women, and more women than men are obtaining postgraduate degrees.
The globalised business environment is dominated by knowledge workers, therefore companies that employ highly-educated men and women would perform better in this competitive business environment. These are individuals that would be able to keep up with the rapid advances in ICTs.
Companies that wish to attract and retain talented women must be willing to remove gender bias in HR policies and practices.
They must also create a gender-sensitive work environment that promotes collaboration and inclusiveness among employees.
Talented female leaders represent an under-utilised source of innovative ideas that could contribute solutions to the social and economic development challenges facing South Africa.
Dr Nozi Mjoli is director of Hlathi Development Services and is a development consultant and gender and leadership specialist. She is the author of Embracing Gender Diverse Leadership for Innovation in the 21st Century IN HIS testimony before the Public Investment Corporation (PIC) Commission of Inquiry into impropriety and corruption during former chief executive Dan Matjila’s tenure, Mondli Gungubele, the deputy minister of finance, claimed it was proved that a transaction involving Ayo Technology Solutions flouted PIC governance procedures and approval processes.
He said various employees participated in the process, “but it is clear that the key event took place on December 14, 2017, when the former chief executive, Matjila, signed a subscription agreement for R4.3 billion without the requisite authority and (without) following due processes.”
Yesterday’s testimony from Dudu Hlatshawyo, a director of the PIC, indicated that the forensic report commissioned after a Standing Committee of Public Accounts (Scopa) meeting was a preliminary report which was riddled with factual inaccuracies.
According to Hlatswayo,Gungubele, who is the chairperson of the PIC, refused board members the opportunity to interrogate the facts of the preliminary audit report, and forced board members to take decisions related to Ayo based on a draft report.
In addition, the day before Hlatshwayo’s testimony, Deon Botha, the head of corporate affairs at the PIC, revealed that most media reports regarding Ayo Technologies were based on incorrect information.
On Monday, an insider from the PIC who cannot be named, told Independent Media that the so-called forensic report that serves as proof of Ayo’s wrongdoing, was put together based on inaccurate reports in an effort to get rid of Matjila so that Gungubele could employ a pliable chief executive.
“That explains why the board was deeply divided on the matter,” said the source. “When the voting for a new CEO took place, it was split down the middle, and Gungubele made the casting vote, which resulted in the appointment of Matshepo More.”
Ayo is perturbed to learn that the CIPC has directed the directors of the PIC to recoup the investment
Under interrogation by evidence leader Jannie Lubbe, Botha conceded that most media reports regarding Ayo Technologies were factually incorrect. Whether or not these were associated with correct processes being followed, the fact is the PIC issued unreliable information pertaining to its deals.
Business Day refers to Ayo Technologies as never having had revenue of more than R12million. The facts are that it is an ICT investment holding group with underlying investments and subsidiaries. The audited financial statements of Ayo for the 12 months ended August 31, 2018, show Ayo generated revenue in excess of R638m.
The company has gone on record stating that it has not had sight of a compliance notice issued by the Companies and Intellectual Property Commission (CIPC).
In a statement released yesterday, Ayo Technologies put to bed the claims made in Business Day. “Ayo is perturbed to learn that the CIPC has directed the directors of the PIC to recoup the PIC’s investment in Ayo. It is concerning that a newspaper has been informed of such a letter prior to Ayo having been apprised of it.
“Ayo believes the CIPC, by failing to inform and provide it with a copy of the alleged notice, has acted contrary to the provisions of the Promotion of Administrative Justice Act, 3 of 2000.”
One must ask another question. If the board of the PIC is in limbo and dysfunctional, does it make sense for any remaining directors at the PIC to ask Ayo to repay a loan when it may find itself incapacitated in decision-making processes while the PIC Commission of Inquiry is under way?
Mdluli is Independent Media’s Investigations Editor