Control of the Eastern Cape Development Corporation’s (ECDC) legal department has turned former allies into adversaries.
Even an intervention by former board members failed to iron out issues which have set acting CEO Reggie Naidoo and company secretary Dali Mbelane on a collision course for months.
Newly appointed chairman Nhlanganiso Dladla has emerged as Naidoo’s backer in the tussle, calling for a review of the company secretariat in spite of Mbelane’s resistance.
Sources who spoke on condition of anonymity said Naidoo, who was previously an ECDC non-executive board member, promised Mbelane an executive manager position with a matching salary and control of the ECDC legal department in exchange for getting rid of former ECDC CEO Sitembele Mase and backing Naidoo to be acting CEO.
The Dispatch has seen a 55-page transcript of the recorded intervention by ex-board chairman Professor Mkhalelwa Mazibuko and former board member Themba Fikizolo, which took place on the August 9.
At the time Naidoo and Mbelane confessed to altercations and swearing at each other and admitted that their once-close relationship turned sour over the control of the legal department, nicknamed “legal” in their conversation.
This week, Naidoo denied ever promising Mbelane an executive position in a trade-off for Mbelane supporting Naidoo’s appointment as acting CEO.
Naidoo said: “The appointment of the CEO is the prerogative of the board. It is inconceivable that there could even be an assumption that the company secretary could influence the CEO’s appointment. I am disputing these allegations.”
Mbelane could not be reached for comment.
On Monday ECDC opted to buy Mase out of his contract which was due to end in June.
The transcript shows Naidoo telling Mazibuko and Fikizolo that Mbelane believed he was a king-maker at ECDC.
“Dali believes that he manipulates and can control the board and he got Mase fired ... so whoever tramps on his toes will be fired by the board. Little does he forget that I am here deployed by the board and I am not looking for a job ... Quite bluntly, if it was my own business I would fire ,” said Naidoo.
“Legal should be under the CEO because there is so much litigation with regards to loans ...”
The Dispatch reported last month that, according to ECDC records, Naidoo’s company had an outstanding ECDC loan of R125 000 dating back a decade.
Mbelane told Mazibuko and Fikizolo that Naidoo had been “arrogant” and swore when he confronted him about the legal department.
“I told him ‘Reggie, we are heading for a crash course .’... He dismissed me and said: ‘No, no, no! I don’t give a s*** about this thing. I can resign now and go. I have my own company. I make millions a day’.”
ECDC spokeswoman Nopasika Mxunyelwa said there was no review of the company secretariat.
The Dispatch has seen a letter dated November 4 in which Dladla told Mbelane: “The review of the company secretariat function is unrelated to and should not be confused with any issues on which you may be in conflict with ... Refusal to cooperate with this reasonable request will lead to a disciplinary process against you.”
Mxunyelwa would not comment on controversy around Naidoo’s ECDC loan. —siyam@dispatch.co.za
Gloves off in ECDC showdown
Even an intervention by former board members failed to iron out issues which have set acting CEO Reggie Naidoo and company secretary Dali Mbelane on a collision course for months.
Newly appointed chairman Nhlanganiso Dladla has emerged as Naidoo’s backer in the tussle, calling for a review of the company secretariat in spite of Mbelane’s resistance.
Sources who spoke on condition of anonymity said Naidoo, who was previously an ECDC non-executive board member, promised Mbelane an executive manager position with a matching salary and control of the ECDC legal department in exchange for getting rid of former ECDC CEO Sitembele Mase and backing Naidoo to be acting CEO.
The Dispatch has seen a 55-page transcript of the recorded intervention by ex-board chairman Professor Mkhalelwa Mazibuko and former board member Themba Fikizolo, which took place on the August 9.
At the time Naidoo and Mbelane confessed to altercations and swearing at each other and admitted that their once-close relationship turned sour over the control of the legal department, nicknamed “legal” in their conversation.
This week, Naidoo denied ever promising Mbelane an executive position in a trade-off for Mbelane supporting Naidoo’s appointment as acting CEO.
Naidoo said: “The appointment of the CEO is the prerogative of the board. It is inconceivable that there could even be an assumption that the company secretary could influence the CEO’s appointment. I am disputing these allegations.”
Mbelane could not be reached for comment.
On Monday ECDC opted to buy Mase out of his contract which was due to end in June.
The transcript shows Naidoo telling Mazibuko and Fikizolo that Mbelane believed he was a king-maker at ECDC.
“Dali believes that he manipulates and can control the board and he got Mase fired ... so whoever tramps on his toes will be fired by the board. Little does he forget that I am here deployed by the board and I am not looking for a job ... Quite bluntly, if it was my own business I would fire ,” said Naidoo.
“Legal should be under the CEO because there is so much litigation with regards to loans ...”
The Dispatch reported last month that, according to ECDC records, Naidoo’s company had an outstanding ECDC loan of R125 000 dating back a decade.
Mbelane told Mazibuko and Fikizolo that Naidoo had been “arrogant” and swore when he confronted him about the legal department.
“I told him ‘Reggie, we are heading for a crash course .’... He dismissed me and said: ‘No, no, no! I don’t give a s*** about this thing. I can resign now and go. I have my own company. I make millions a day’.”
ECDC spokeswoman Nopasika Mxunyelwa said there was no review of the company secretariat.
The Dispatch has seen a letter dated November 4 in which Dladla told Mbelane: “The review of the company secretariat function is unrelated to and should not be confused with any issues on which you may be in conflict with ... Refusal to cooperate with this reasonable request will lead to a disciplinary process against you.”
Mxunyelwa would not comment on controversy around Naidoo’s ECDC loan. —siyam@dispatch.co.za
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