The directors named by the report still continue to hold office.
Black Management Forum (BMF) President Mpho Solomon Motsei. Picture: Supplied
Black Management Forum (BMF) president Mpho Motsei has suspended seven directors after an independent report linked him to serious governance failures. But the seven that were suspended were not named in the report.
Motsei’s actions seem to have fuelled the organisation’s internal turmoil, as certain individuals named by the report were saved by the president. This is not the first time he has retaliated.
According to Sowetan, in May, former BMF board member Papama Mnqandi accused Motsei of orchestrating a “BMF heist” and failing to act on corruption in the organisation. Motsei responded by filing a R2.5 million defamation lawsuit in the South Gauteng High Court, arguing the allegations were false and damaging.
The BMF, founded in 1976, is a non-profit organisation dedicated to developing and empowering managerial leadership that reflects the country’s demographics.
BMF infighting
The report named Motsei and several directors as the bad apples of the organisation. However, the president has hit back, stating he has been on top of steering the organisation in the right direction, “disallowing those who seek to capture the BMF for their selfish interests”.
This follows Sunday World‘s explosive article detailing the findings of the report compiled by the stalwarts of the BMF.
According to the article, the report reveals that Motsei and board members of its investment arm are involved in serious governance concerns and financial irregularities.
These include an unapproved salary increase, a dividend declaration, an irregular appointment and mismanagement of the board, among other issues.
BMF president and directors’ payday
The report found that Motsei, BMF Investments directors and acting chairperson Lebogang Phasha approved a 25% increase in their own remuneration.
“Based on the evidence and information received by the committee, it is our considered view that a prima facie case exists that members of the BMF Investments board may have acted in contravention of the Companies Act through the approval and implementation of increases of their own board remuneration,” said the report.
“The evidence before the committee is sufficient to warrant a formal investigation and disciplinary process.”
Declaration of dividend
The report also outlined that in July 2024, the board declared a R31-million dividend without performing a solvency and liquidity test as required by Section 46 of the Companies Act. The section stipulates that a company can pay dividends to shareholders only if it is financially healthy.
According to the Sunday World article, BMF’s investment arm has a portfolio that includes a 1.3% stake in Nedbank, 1.2% in Raubex and 25.1% in the Rosslyn Hub Development Company.
The report concluded that the declaration of a dividend was in breach of Section 46 of the Companies Act and raised concerns about the board of the investment division’s discharge of its fiduciary duties.
“Based on the evidence available to it, the committee is of the view that a prima facie case exists, warranting further investigation into the conduct of those directors who participated in and approved the declaration of the dividend.
“All BMF nominees to the BMF [Investments] board should be afforded a reasonable opportunity to respond to the allegations and provide any mitigating or explanatory evidence.”
Mpumalanga director studies in Europe
The report also touched on the complaint that Thulani Mlangeni, the Mpumalanga chairperson, was studying in Europe and had been absent from the province for a long time.
It was found that there is not enough evidence that Mlangeni, who is also a board member of BMF Investments, continued to serve as Mpumalanga chairperson. That meant he should be regarded as having vacated the position and cease to be a member of the board and its structures.
The report also found that the BMF’s Student Chapter had not convened a conference since May 2024, contravening the organisation’s memorandum of incorporation; therefore, Richard Molefe, the chairperson of the Student Chapter, should be removed from the role, as his term of office has expired.
Irregular appointment
The report revealed that the chairperson of the BMF in Limpopo, Daisy Raphela, had not been properly elected to the role. Motsei vacated the provincial leadership seat in 2024, meaning an annual general meeting should have been held to elect a new chairperson.
This was not done. The report recommended Raphela’s removal from the role and the BMF board until an AGM had been held.
In addition, the report recommended that the organisation set up a disciplinary committee to investigate Motsei and all affected directors in relation to the various allegations.
BMF deputy president Lilly Moabi said this will be done and the organisation will implement its recommendations in full. As such, Motsei would be facing an independent disciplinary hearing.
President hits back
Sunday World reported that the BMF has issued Motsei with a suspension letter and appointed Moabi as acting president. In response, Motsei said he is still the president of the organisation and hit back by suspending the seven directors, including Moabi.
Those suspended are:
- Lilly Moabi- deputy president
- Dr Lucky Madikane- Free State Chairperson
- Dr Bhekisisa Mthembu- Eastern Cape Chairperson
- Oagiseng Bojang- North West Chairperson
- Dr Nathi Nkwanyana- KwaZulu-Natal Chairperson
- Paseka Letsatsi- Gauteng Chairperson
- Jeremiah Klass- Young Professional Chairperson
Motsei said the suspensions of the directors is part of the organisation’s “precautionary steps to safeguard the organisation’s governance”.
The suspensions are temporary, pending the outcome of an independent investigation into concerns raised about governance matters.
Corruption is present
Motsei did acknowledge that the organisation has been experiencing internal leadership battles. However, he said this should not come as a surprise in a country that has a prolonged history of state capture and institutional corruption across different sectors.
“It is important to stress that these are precautionary measures only,” he said.
“They are not findings of guilt, and no conclusions have been drawn about any of the individuals. Throughout this process, the BMF remains fully operational. With BMF President Mpho Motsei at the helm.
“Good governance begins at home. We have always called for ethical leadership and accountability in both the public and private sectors, and we owe it to ourselves to live by those very standards.”
‘Independent process appointed’
Motsei said there has been an “independent process” appointed to look at into the matters.
“To ensure fairness, the board has appointed an independent process to look into the matters raised. Every individual affected will be given a full and fair opportunity to respond to the concerns.
“Out of respect for the process and for the rights of everyone involved, the BMF will not comment on the details of the allegations while the investigation is underway.”
