The Institute of Directors is the latest entity questioning the board appointments at the Johannesburg Property Company, where the MMC for economic development reportedly unilaterally appointed a receptionist, a cashier and a person without Matric.
“The company’s board bears ultimate oversight accountability for the inadequate management of its valuable property portfolio properly and it requires no stretch of the imagination to assume that the possible lack of skills could lie at the heart of the problem According to King IV, directors should have the correct mix of skills and experience to discharge their legal duties. A robust and transparent nomination process that includes in-depth vetting of candidates should be followed.
The performance of local government generally, including municipal entities like the Johannesburg Property Company, has a direct bearing on service delivery and therefore on the most vulnerable sectors of society, she says. Natesan says it is clearly imperative that municipalities and municipal entities are properly governed and the Auditor General highlights the need for competent people to be appointed for governance to be strengthened.