A key agency established to promote trade and investment in the Western Cape has been rocked by a salary dispute and allegations of political interference, which has led to the resignation of the chair and a member of the board.
He was on a five-year contract, which was renewed with improved terms effective March 1, but economic opportunities MEC David Maynier raised concern about the increase in light of the prevailing economic crisis brought on by Covid-19. Wesgro’s governing act stipulates that the agency has the power to employ officers and employees and to pay them such remuneration and benefits as may be determined by its board.
This week, Wesgro chair Prof Brian Figaji, who supported the salary increase, said he resigned as chair of the board on June 30. He said his position had become untenable due to “ministerial over-reach” on the part of Maynier. His resignation leaves the board, which is meant to have 12 members, with 10 directors. It is, however, still quorated.
Figaji said that while it is the MEC’s prerogative to not renew a board member’s term, “this is not simply about a non-renewal of board members’ terms, rather it is about the desire to control the board and to [its members] compliant.” In response to the Covid-19 health crisis and economic climate, the Wesgro board also accepted an unsolicited offer from the CEO of a 6% reduction in salary and a one-third reduction in bonuses for the financial year 2020/2021, Figaji said, adding that Harris’s pay package is still substantially lower than CEOs of similar agencies in other provinces.