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Centlec's fired CFO drags CEO to High Court

───   LUCKY NKUYANE 10:00 Fri, 22 Jul 2022

Centlec's fired CFO drags CEO to High Court | News Article

The Chief Executive Officer (CEO) at the Bloemfontein-based Mangaung Metro Municipality’s power entity, Centlec, has been dragged to the Free State High Court in civil litigation.

Centlec's dirty laundry is now being exposed in the Free State High Court in civil litigation between the current Chief Executive Officer (CEO) and former Chief Financial Officer (CFO).

The former CEO of the troubled entity, Hlonelwa Nkomo, is petitioning the court in a bid to have the current CEO, Malefane Sekoboto, declared a delinquent director following a string of damning allegations against him. In her affidavit disposed in court on 29 June 2022, she makes damning allegations against Sekoboto and indicates that there are no signed minutes of a board meeting of the entity, showing that Sekoboto was employed as such.

ALSO READ: Mangaung’s Centlec rocked by allegations of illegal salary hikes

Nkomo, in her damning details in court, further illustrates that there is no advertised position, no interviews were held with Sekoboto, and no endorsement on record from the board of directors endorsing his employment.  The entity and its CEO are yet to comment on OFM News' inquiry.

“Upon the said appointment, the respondent failed to disclose his ineligible for appointment as the director does not satisfy the qualifications as per the company’s memorandum of incorporation. Upon the said appointment, the respondent failed to disclose that he has been convicted of criminal offences which would have disqualified the respondent from serving as a director,” Nkomo adds in her court affidavit. She has also produced a case number as evidence to the court in her attempt to declare Sebokoto as a delinquent director. He is also been accused of abusing his power as the CEO. Nkomo has further furnished the court with a variety of evidence including a communique between two other people.

Recently the ANC’s Interim Provincial Committee (IPC) coordinator, Paseka Nompondo, during a media briefing, mentioned that the board of the entity will be disbanded.

ALSO READ: Centlec’s board to be disbanded

Nompondo bemoaned the electricity crisis and said the inability of communities to pay for municipal services affects the municipal capacity to provide the required services, including meeting their obligations with other state entities such as Eskom and Water Boards.

“We are therefore of the view that Eskom, Water Boards, the South African Local Government Association (Salga) and Treasury should meet and find viable solutions for municipalities such as Kopanong, Masilonyana, Mafube, Nala, Moqhaka and Mangaung Metropolitan Municipality, to provide electricity and water services without affecting communities. 

To enhance the capacity of Centlec and provide strategic leadership, the IPC resolved that the Board of Centlec must be dissolved and the municipality must resume the process of appointing suitably qualified members of the board with the desire to improve the efficiency of Centlec,” Nompondo adds.

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