Question to the Minister of Telecommunications and Postal Services (Inactive) - NW2239

31 July 2015 - NW2239

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?

Link

Reply:

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

DEPARTMENT:

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 [email protected]	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)

31 July 2015 - NW2239

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

Reply:

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