Malatsi Cleans House: Fires Usaasa board members for financial misconduct

Communications Minister Solly Malatsi is on the mission to clean one of the entities under his portfolio. Picture: Henk Kruger/Cape Argus

Communications Minister Solly Malatsi is on the mission to clean one of the entities under his portfolio. Picture: Henk Kruger/Cape Argus

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Communications Minister Solly Malatsi has been on a mission to clean one of the entities under his department’s portfolio.

Malatsi earlier this month removed two members from the Universal Service and Access Agency of SA (Usaasa) board and replaced them with three new members this week.

The two members, Daphne Kula-Rantho and Boitumelo Mabusela, were dismissed for financial misconduct.

The decision was in line with clause 13 of the Governance Agreement, in relation to section 83 of the Public Finance Management Act, which empowers the minister to dismiss board members due to financial misconduct.

Malatsi added that his decision was also in a bid to restore stability and good governance at the entity.

This came after the auditor-general flagged that all fees earned by the two would be categorised as irregular expenditures, and indicated that the Department of Communications and Digital Technologies (DCDT) should recover these monies.

The two have collected R1 651 960 in board fees, to which they were not legally entitled.

Kula-Rantho was said to have received R1 288 966 from March 2021 to July 2024. Mabusela was said to have collected R362 994 in board fees from October 2023 to July 2024.

Usaasa was established to provide universal connectivity through government and private sector partnerships. It has also been involved in South Africa’s multibillion-rand digital TV set-top box rollout.

This was not the first time members of Usaasa became the subject of negative headlines.

The agency in 2014 suspended one of its senior staff members based at the head office. The suspension followed allegations of corruption and maladministration against the member.

The member was accused of using the personal information of board members to make personal travel arrangements. He was also accused of using the personal information of board members and other senior members to make reservations at various hotels across the country.

Other allegations were:

  • Using information of a different government agency to book a vehicle. This act has resulted in the said member being criminally charged;
  • Passing confidential information of the agency to third parties;
  • Using agency electronic equipment to produce pornographic material; and
  • Using the electronic signature of the former board chairperson, Pumla Radebe, to solicit a loan to purchase a vehicle.

The Special Investigating Unit (SIU) also approached the Pretoria High Court to set aside the appointment of chief executive Zama Nkosi. This was after a number of whistle-blowers alerted Corruption Watch to irregularity in Nkosi’s appointment.

In 2016, United Democratic Movement (UDM) leader Bantu Holomisa wrote a letter to former President Jacob Zuma and informed him about victimisation of whistle-blowers following allegations of corruption and maladministration.

This was after former officials who blew the whistle about the allegations were removed from their position.

Appointing Palesa Makobe, Mpho Sadiki, and Mandla Mnisi as new members of the board this week, Malatsi said this would reinforce the capacity of the board to function optimally and deliver on its mandate.

Mnisi has been appointed the interim chairperson of the board.

“This is a dynamic group of qualified, ethical, and capable South Africans representing the right balance of experience in the private sector and leadership in public service. Collectively, they have demonstrated consistent professionalism throughout their careers. I’m confident that they are fit for purpose for the mission that lies ahead," said Malatsi.

He added: “Their primary role is to work together with the acting CEO to immediately restore stability in the board, uphold the highest level of ethics, accountability, and efficiently deliver on USAASA’s mandate to connect every South African to opportunities in the digital age.”

Malatsi added that the board must also prioritise the recruitment of a permanent CEO and fill all other critical management positions to empower the agency with the talent and expertise it urgently needs to succeed.

He said the three would work together with the current board members to deliver the repurposing of the Universal Access Fund (USAF) into the Digital Development Fund as part of the GNU’s programme of rationalising state-owned entities.

manyane.manyane@inl.co.za