Richards Bay – The Interim CEO of Umhlathuze Water in Richards Bay, Dr Simo Lushaba, a specialist in turning around struggling companies, has resigned.
IOL understands that in his resignation letter which was sent to the board led by Thabi Shange, Lushaba cited safety concerns and asked to be allowed to leave his position immediately.
However, the panicking board asked him to serve his notice so that it could have time to appoint his successor.
“The incident by the business forum left him shaken and he feared for his life, hence he decided to resign a few days after it happened.
“The board is refusing to let him go with immediate effect, it wants him to serve his notice so that there is proper transition and stability,” a deep-throat source told IOL.
Lushaba’s departure comes after early this month a business forum stormed their offices in central Richards Bay and held staff hostage for about five hours.
This was over a R36 million security tender to guard critical water pumps around the City of Umhlathuze (Richards Bay-Empangeni).
The King Cetshwayo Business Forum is fighting the entity's decision to unilaterally cancel a R36m security tender and re-advertise it.
The forum gave the troubled water board an ultimatum to review its decision or else it would face its wrath.
Among their demands during a rowdy meeting during the hostage situation was that the security company brought from the Richards Bay Industrial Development Zone to do the work should be removed.
The police had to be called to restore order and water board later opened a case with the SAPS.
The water board confirmed the resignation of the CEO who came to office in September 2022, but refuted (that the incident sparked his sudden departure).
“Mhlathuze Water can indeed confirm that the board has received the resignation of the interim chief executive, Dr Simo Lushaba.
“It must be borne in mind that upon his appointment last year, we did indicate that this was on an interim basis and his term would expire in February 2023.
“Indeed when it expired, it was extended by a further two months.
“We therefore refute as baseless allegations seeking to link Dr Lushaba’s resignation with the actions of the business forum,” the water board said in a statement to IOL on Tuesday.
sihle.mavuso@inl.co.za
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