Question NW2239 to the Minister of Telecommunications and Postal Services

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31 July 2015 - NW2239

Profile picture: Figlan, Mr AM

Figlan, Mr AM to ask the Minister of Telecommunications and Postal Services

Whether (a) his department and (b) any entities reporting to him has paid out the remainder of any employee's contract before the contractually stipulated date of termination of the contract since the 2008-09 financial year up to the latest specified date for which information is available; if so, (i) what amount has (aa) his department and (bb) entities reporting to him spent on each such payout, (ii) to whom were these payouts made and (iii) what were the reasons for the early termination of the contracts in each specified case?

Reply:

I have been advised by the Department and Entities as follows:-

DEPARTMENT:

  1. Yes

The table below provides a full response to the questions asked by the Honourable Member:-

(ii) Name

Contract Period

Contract terminated

(iii) Termination reason

Contract period paid out

(i)(aa) Amount

S D L Dhlomo

13 July 2009 to 13 January 2011

31 May 2010

The Post of Deputy Director: Subsistence and Travel was not approved on the organisational structure.

The appointment was made irregularly.

The employee’s contract was terminated accordingly. The employee then took the department to arbitration.

1 June 2010 to 13 January 2011

Salary:

R 249 192-70

South African Post Office (SAPO)

(b) Yes,

It is not a practice of the SAPO to pay the remaining value of the contract in cases where Executives leave the organisation before the expiry date of the employment contract. The Executives in the table below were only paid the arbitration awards agreed to, between the employees, their legal representatives, and the company. However, these payments are not linked to the contracted term of employment

See arbitration figures paid since the 2008/9 financial year to current within the SAPO Group.

 

(ii) Name

Job Title

(iii) Reason for Termination

(i)(bb) Settlement Amount

Settlement Date

JP WENTZEL

COO (2 A)

Resignation (Arbitration settlement)

548,058.25

10/07/2011

RM NESHUNZHI

GM (3)

End of Contract (Arbitration settlement - (Contract paid until 31 May 2012)

532,493.50

11/30/2011

MM LEFOKA

GCEO (1)

Resignation (Arbitration settlement)

1,466,810.00

01/24/2012

MS DIAZ

GE (2 B)

Resignation (Disciplinary hearing - Deed of settlement signed) Arbitration settlement

370,217.25

11/28/2013

ME LANCASTER

GE (2 A)

Retrenchment severance package (Voluntary Retrenchment Agreement)

1,698,977.00

12/3/2013

BS BULUNGA

COMPANY SECRETARY (3)

Dismissal (Settlement at CCMA)

404,615.93

26/3/2014

ZADNA

(b) No

ZaDNA has not had an employee’s contract terminated before its stipulated termination.

SENTECH

(b) Yes,

The table below provides a full response to the questions asked by the Honourable Member:-

(ii) Name of Employee

Position

Period

(i)(bb) Amount Spend

(iii) Reason for Settlement

Process

Mr. Cassim Mohammed Siddique

Chief Financial Officer

2010

R 360 000.00

Dismissed

CCMA Award settlement

Mosala Mojaki Frederick

Head: Employee Relations

2010

R 257 393.00

Dismissed

Employee lawyer based on the ongoing case with little evidence

Steenkamp Carin

Portfolio Manager: Special Projects

2010

R 515 824.47

Retrenched

Retrenchment

Ramokhufi Rachel Neo

Executive: Strategy and Co-ordination

2010

R 250 698.34

Ongoing disciplinary hearing

Employee lawyer based on the ongoing case with little evidence

 

Email

info@pmg.org.za

 

Chief Financial Officer

2012

R 142 482.84

Claimed Constructive - Dismissed

CCMA Award settlement

Nevhutalu Tendani Gaylord

Head: Financial Accounting

2012

R 62 000

Dismissed

CCMA Award settlement

Emerich Rian

General Manager: Marketing and Sales

2012

R 83 503.27

Dismissed

CCMA Award settlement

NEMISA

(b) Yes,

The table below provides a full response to the questions asked by the Honourable Member:-

(ii) To whom were payments Made

Period

(i)(bb) Amount Spend

(iii) Reason for Settlement

Chief Operations Officer

2013-2014

R 779 055.00

Mutual Separation Agreement

BROADBAND INFRACO

(b) Yes,

From 2008-09 up to date, Broadband Infraco had no early terminations of contracts which involved paying out the remainder of an employee’s fixed term contract. However, Broadband Infraco did terminate the employment contract of three (3) employees due to disciplinary processes and after an assessment that it would cost the Company far less to have conclude a mutual separation agreement with each of the employees instead of pursuing long protracted legal proceedings and committing company resources and labour in pursuit of the legal cases against the employees. Refer to the table below:

(ii) Name of employee

Position

Period

(i)(bb) Amount Spend

(iii)Reason for Settlement

Process

Suren Maharaj

Chief Financial Officer

March 2011

R 395 916.50

The Board decided to part ways with the CFO after he was issued with a final written warning for dereliction of duties

Employee had been issued with a Final written warning

S Mapatagane

SHEQ Manager

June 2011

R 123 527.34

The settlement was paid out due to legal costs that were increasing and lawyers for the Company advised on paying the settlement to minimise litigation costs

Employee had been subjected to a disciplinary hearing

Ray Hamilton

Chief Sales & Marketing Officer

August 2014

R 400 000

Paid a negotiated settlement for four (4) months for mutual separation with R Hamilton.

Disciplinary Process- he exceeded his delegation of authority

USAASA

(b) Yes,

The table below provides a full response to the questions asked by the Honourable Member:-

(ii) To whom were payments Made

Salary Level

Salary per annum

(i)(bb) Amount Paid

(iii)Reason

Date of Exit

Senior Manager: Human Resources

13

R 540 429

R 135 107

Mutual agreement

31 May 2008

Chief Executive Officer

15

R 1 099 824

R 458 260

Mutual Agreement

31 May 2010

Chief Executive Officer

15

R 1 120 935

R 499 292

Mutual Agreement

30 March 2012

Senior Manager: USAF

13

R 782 883

R 547 000

CCMA Settlement Agreement

30 September 2015

Board Administrator

10

R 405 390

R 99 534

Mutual Agreement

31 December 2014

Payroll Administrator

9

R 296 100

R 74 025

CCMA Settlement Agreement

20 April 2015

SITA

(b) Yes

The table below provides a full response to the questions asked by the Honourable Member:-

(ii) Name

Designation

(i)(bb) Gross Pay Out

Date paid

(iii) Reason for Termination

Blake Mosley-Lefatola

Chief Executive Officer

R 1 439 606.45

May 2013

Early termination of contract (Board Decision)

Nontobeko Ntsinde

Chief Executive Officer

R 574 991.00

June 2013

Unfair termination of contract (Labour Court Decision)

Thandi Zide

SITA Company Secretary

R 550 000.00

August 2013

Unfair Dismissal (CCMA Decision)

Khumbuzo Ntshevheni

Chief Operating Officer

R 1 899 000.00

June 2014

Early termination of contract (Referred to Labour Court and resulted in a Settlement Agreement)

Tshidi Gumbi

Head of Department: Human Resource

R 265 898.52

May 2015

Unfair Dismissal (Referred to CCMA and resulted in a Settlement Agreement)