The National Home Builders Registration Council has been told it cannot appoint a board member to replace its suspended CEO. Picture: Nhlanhla Phillips / Independent Newspapers
THE National Home Builders Registration Council (NHBRC) has been told it cannot hire one of its board members to act as chide executive officer.
The NHBRC, an agency of the national Department of Human Settlements, appointed Nontuthuko Chiluvane, a member of the NHBRC council or board, as its temporary boss - a move that angered Cosatu affiliate, the National Education, Health and Allied Workers’ Union (Nehawu).
Labour Court Judge Connie Prinsloo stopped the state-owned the regulatory body of the home building industry from naming Chiluvane to filling the vacancy created by the suspension of Songezo Booi in November last year.
”The second respondent’s (Chiluvane’s) appointment as the first respondent’s (NHBRC’s) acting chief executive officer is declared unconstitutional and unlawful. The second respondent’s appointment as the first respondent’s acting chief executive officer is set aside,” reads the ruling.
Chiluvane was appointed despite the council being advised by its company secretary that its members are precluded from acting in any position.
The then-minister of Human Settlements Mmamoloko Kubayi was informed that should the council decide to appoint an internal employee in terms of the prescripts of its acting policy, it would have to consider the appointment of either the chief financial officer or the executive manager responsible for corporate services to act in Booi’s position.
Kubayi responded: “I concur with the council resolution of the November 15 to appoint a suitably qualified council member as an interim CEO until the investigation is finalised and disciplinary hearing concluded.”
She noted that the NHBRC has been advised against implementing this resolution as it is against its acting policy.
“I am of the view that it is within the powers of the council to waive this particular clause of the policy. I expect the council to understand the gravity of this matter and exercise these powers because in our recent interaction council brought it to my attention that NHBRC does not have sufficient capacity at executive level,” she explained.
Nehawu demanded Chiluvane’s immediate resignation as acting boss as her appointment constituted a “blatant violation of governance principles, NHBRC policies and organisational integrity”.
The union stated that her appointment contravenes the NHBRC’s acting policy, which explicitly prohibits temporary employees and (former) council members from being considered for acting appointments.
According to Nehawu, the policy existed to ensure impartiality, prevent conflicts of interest and maintain governance integrity and that by disregarding it the now defunct council has acted in blatant abuse of its powers and undermined the governance framework it was mandated to protect.
Nehawu hailed Judge Prinsloo’s ruling, saying that Kubayi and the council disregarded the policy, acted in blatant abuse of their powers, and undermined the entity’s governance framework.
“ … As Nehawu, we shall not allow state entities to undermine the principles of good governance. We welcome the judgment of the Labour Court setting aside the appointment of acting chief executive officer of the NHBRC,” the union said in response to the judgment.
Nehawu stated that the flouting of rules and policies in favour of arbitrary decisions in contravention of the prescripts and policies does not belong in the running of a state entity and could undermine the rule of law and create chaos and uncertainty.
loyiso.sidimba@inl.co.za