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South Africa: Axed CEO Mpofu Tells Court SABC 'Broke Rules'
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Business Day (Johannesburg)
16 May 2008
Posted to the web 16 May 2008
Ernest Mabuza
Johannesburg
SUSPENDED SABC group CEO Dali Mpofu's lawyer told the Johannesburg High Court yesterday that the public broadcaster's board broke corporate governance rules when it suspended Mpofu.
Speaking during Mpofu's urgent application to set aside his suspension, Vincent Maleka said the board had no power to suspend his client.
Mpofu was suspended by the SABC board hours after he had suspended SABC head of news Snuki Zikalala.
It also emerged in court yesterday from Tim Bruinders, representing the SABC board, that Zikalala has also launched a court action against the broadcaster. He did not elaborate.
Mpofu was suspended on May 7, only hours after he suspended Zikalala the previous afternoon . Mpofu's suspension is on the grounds that he failed to implement decisions of the board.
Maleka yesterday challenged Mpofu's suspension and asked the court to declare that the meeting of the SABC board that was held on May 6 be declared unlawful because it was not properly constituted.
Maleka said the board acted unlawfully when it suspended Mpofu as it did not have the power to do so. Maleka said the board recommended the executive appointees to the communications minister and did not appoint them.
"Where the statute is silent on who has the power to dismiss but has conferred power to appoint, it is clear that the minister has the power to suspend."
Maleka said the resolution by the board that Mpofu be suspended was not valid because it was signed by the acting company secretary. He said a clause in the articles of association of the SABC stated that a written resolution not signed by all directors should not be valid.
Maleka said that when Mpofu suspended Zikalala, he was exercising the day-to-day management function of the executive.
"The umbrage by certain members of the board constituted interference in the executive functions of management."
Bruinders told Judge Moroa Tsoka that Mpofu was not suspended as a member of the board.
Bruinders disputed Mpofu's assertion that the board did not have the power to suspend him.
Bruinders said the high court did not have jurisdiction to determine the fair-ness of the suspension bec-ause Mpofu's suspension arose out of his employment contract and allegations about his performance as group CEO.
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The matter continues today.
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