Alexkor Annual Report: postponed due to absence of executives

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Public Enterprises

02 November 2016
Chairperson: Ms D Letsatsi-Duba (ANC)
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Meeting Summary

Annual Reports 2015/16 

The Alexkor Board was supposed to brief the Committee on its 2015/16 Annual Report. However the Committee observed that most of the executives were not present and sought an explanation for this. After being informed that the entity was affected by multiple resignations, Members agreed to excuse to Alexkor and asked it to return with competent representatives to brief the Committee.  The Committee registered its disappointment with the shareholders and the Department as there were issues that the Committee had not been aware of. The Committee also requested that Minister be present at the next engagement.

Meeting report

The Chairperson welcomed members of the Board from Alexkor as well as the delegation from the Department of Public Enterprises.

Ms Hantsi Matseke, Board Chairperson, Alexkor, tendered apologies for the Acting CEO, whose father had passed away and for the absence of the Chief Operations Officer (COO), who was in the office.

The Chairperson enquired as to the absence of the other Alexkor Executives.

Ms Matseke responded that the Chief Financial Officer (CFO) had resigned and that the company was sourcing a replacement. She added that only the COO was holding office currently.

Ms T Stander (DA) asked for clarity in terms of the resignation and the reasons tendered for the resignations of the Executives. She enquired as to whether the resignations were a recent development and asked who was qualified to report on the company’s Financial Statements and Annual Report.

 Mr Z Luyenge (ANC) extended his condolences to the CEO.

Mr Luyenge however stated that it must be ensured that the individual presenting was as qualified as the CEO and CFO.

Mr N Singh (IFP) extended condolences to the Alexkor CEO and his family on behalf of the Committee.

Mr Singh indicated that the Committee was not made aware of the resignations and that he was not certain if there was any purpose in questioning Alexkor during the engagement. He enquired as to whether the Department was informed of the resignations and if so, when.

Ms D Rantho (ANC) said she shared the sentiments of the Committee regarding the resignation of the CFO. She requested the views of the shareholders and enquired as to when the executive members submitted their resignations in order to ensure that it did not become a norm that that the board chairpersons present to the Committee. She asked Ms Matseke to provide a political overview and not the content of the Annual Report and Financial Statements.

The Chairperson explained that the COO should be available; he could not be in the office when he was expected to report to Parliament on such pertinent issues.

Mr Kgathatso Thlakudi, Department Deputy Director General: Manufacturing Enterprises, DPE, explained that the Department became aware of the CFO’s resignation in late August 2015, and that her employment terminated in September. He stated that Alexkor had been handled by the Department of Public Enterprises for some time and that it was unfortunate that the CFO could not be present.

Mr Thlakudi said that the the sustainability of the company is dependent on the generation of income from the further acquisition of diamonds or coal. This strategy had not unfolded as expected and as a result, restructuring was done to reduce the number of employees based on financial constraints.

Ms Matseke explained that the business of the company was Pooling and Sharing Joint Venture (PSJV), holding 51% of minerals in Namaqualand. A number of individuals in the company were appointed before the coal strategy was implemented. As a result, two executives including the CFO, remained, therefore there were currently five officials at Head Office.

Ms Matseke explained that the current CFO was new in the organisation hence; other officials from the company were present.

Ms Stander emphasised that it was unacceptable that the Committee Chairperson was not informed of the resignations. She proposed that Alexkor be excused and return prepared with competent representatives. The Committee could not adequately assess the report.

 Committee Members placed emphasis on norms and respect for the authority of Parliament and could not engage the company.

 Alexkor was excused.

 The Chairperson registered her disappointment with the shareholders as there were issues that existed in Alexkor which the Committee had not been aware of.

 The Chairperson indicated that “the Department was not hands on” and proposed that the Committee request the presence of the Minister in Parliament.

 Consideration of Minutes

The draft minutes for the 26 October 2016 were considered.

Ms Stander noted that the DA's reservation of its rights and others issues were not captured in the minutes and requested an amendment to her contribution in the minutes and would submit the changes to the Committee in writing.

 The draft minutes 26 October 2016 were agreed upon and adopted by the Committee.

Mr Luyenge approved the minutes.

Mr Nobanda seconded the minutes.

The meeting was adjourned.

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