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Resignation Drama Hits Postbank Board Amid Allegations of 'Hostile' Ministerial Conduct".

Published September 21, 2023
9 months ago

A dramatic development within the South African banking sector has unfolded, with the entire board of the Postbank, including the chairperson and all non-executive directors, resigning. Their departure comes amidst allegations of 'hostile and oppressive' behaviour from Communications Minister, Mondli Gungubele.

In correspondence dated September 12, addressed to Minister Gungubele, the resigning board members claimed that recent events and unfortunate circumstances created an insurmountable atmosphere of hostility, leading to their decision to step down. With continued interference and undue pressure, the board stressed that their ability to function meaningfully was eroded, accenting to their departure. The ministers alleged 'oppressive and hostile attitude' was cited as central to their decision to resign.

The board members cited their inability to continue their association with an institution that experienced such internal conflict. The board claimed that there were six instances where issues were expressed directly to Minister Gungubele, all of which were not reciprocated with any response or action.

Their decision to resign, despite the intense efforts made to fulfil their mandate, was according to them, not achieved without difficulty. They mentioned that they understand the potential fallout of their action but felt that the situation became untenable.

Further adding intrigue to the aftermath of this resignation is the upcoming government briefing on issues plaguing the SA Social Security Agency (Sassa) grant payments. The resignations occurred just hours before the scheduled update. Minister Gungubele and Social Development Minister Lindiwe Zulu are expected to provide explanations over recent payment delays, leaving millions of Sassa beneficiaries stranded. To date, complaints from beneficiaries unable to withdraw their grants continue to pour in, according to NGO, Black Sash.

Postbank falls under the administrative umbrella of the Communications Ministry, led by Minister Gungubele. Meanwhile, critics have insisted that Postbank lacks the essential capacity and technical infrastructure to adequately fulfil its responsibilities.

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