PSA president, board member at loggerheads

THE Public Servants Association board and its president, Dr Lufuno Mulaudzi, are involved in a legal battle over the appointment of a general manager.

Mulaudzi, who was re-elected as president on Monday, threatened the board with legal action if it did not reverse the appointment of Marcus Ramakgale as the new general manager.

Mulaudzi confirmed his re-election as the new president, but refused to discuss the union’s problems. He referred the Daily News to the chairperson of the board, Pierre Snyman.

A letter written by Hahn and Hahn Attorneys, on behalf of Mulaudzi to Snyman, stated that the recruitment process was flawed and that candidates who did not have the minimum experience, as required in terms of the advertisement placed for the position of general manager, had been shortlisted.

The letter stated that Ramakgale was appointed without having the minimum required managerial experience. It stated that although Mulaudzi met all the requirements, his application had been unsuccessful.

“As a result of non-adherence to the PSA recruitment and selection policy, the appointment of Ramakgale is invalid, and accordingly, our client herewith formally declares a dispute, in terms of section 89 of the PSA statute.”

A source, who requested anonymity, said the board had manipulated the process for self-benefit. The source said it was unfortunate that the union, which propagated clean governance and which was critical of boards that interfered in the administration of State-owned Enterprises (SOE), was now doing exactly that itself.

“The PSA, with its strong administrative arm, for years was seen as an upright union that took strong stands against corruption and maladministration. Now it is entangled in infighting with a board that is driven by self-interest. The question is: How did this culture of accountability and strong adherence to corporate culture, which is not seen in many unions, collapse after 100 years?” the source said.

The source further stated the board had become a player and referee, because it was running the recruitment process while members were also applicants for the general manager’s positions.

He said Ramakgale was appointed despite not having any proven experience at the executive level, which was a key requirement, and the fact that he was under investigation for having received payments from the PSA without permission.

“How can board members compete with staff for positions in the same public company while holding board positions without failing in their fiduciary responsibilities as outlined in the Companies Act?” read the letter.

According to other sources, this appointment will see Ramakgale, who is currently a deputy director in the national Human Settlements Department with a salary of R900 000, earn more than R3.5 million per annum.

Attempts to get hold of Ramakgale were unsuccessful, but Snyman said the PSA was unaware of a court case. He confirmed Ramakgale’s appointment.