Question NW2810 to the Minister of Transport
22 November 2018 - NW2810
Brauteseth, Mr TJ to ask the Minister of Transport
(1) With reference to the forensic findings against a senior official at Airports Company of South Africa (ACSA), what (a) action has been taken to date and (b) are the reasons for the delays in taking action; (2) What (i) are the reasons for the resignation of ACSA board members and (ii) is being done to replace the members and (b) how are decisions of the board approved without a full complement of board members?
Reply:
Airports Company South Africa SOC Limited (ACSA)
(1)(a) After consideration of the first forensic report, the Board agreed that a second report be obtained. The Open Water report was concluded in January 2018 and the previous Board constituted a Board Sub-committee to review the report. The sub-committee met in February 2018, discussed the report and a recommendation was made to the Board in this regard. However, before this could be discussed at a Board meeting, the term of office of the then acting chairman expired and two Board members resigned. That left the Board with two Non-Executive Directors and one Executive Director, namely the Chief Executive Officer. The matter was then held over for the new Board to be appointed.
(b) After the appointment of the new board, the forensic reports have been considered by the Audit and Risk Committee (“ARC”). A Board ad hoc committee constituted by two members each from the Remuneration and Nominations Committee and ARC has been tasked with working on these reports and external advice has been sought in this regard. It is envisaged that the matter would be concluded soon.
(2)(a)(i) The Board members cited various reasons, information of which can be forwarded on request.
(ii) The Minister has appointed six Board members who have assumed their directorships with effect from 1 September 2018. The Board Chairman has subsequently been appointed with effect from 9 November 2018.
(b) In terms of clause 13.1.1 of ACSA’s Memorandum of Incorporation (“MOI”), the Board shall, at all times, consist of a minimum of three directors and a maximum of twelve directors, of which a majority shall be non-executive directors. The decisions taken by the Board have been taken by a fully constituted board in terms of the MOI.