BMF board members in hot water after report finds irregularities

Pay hikes and long absences among complaints probed

- By Bongani Mdakane

An explosive report compiled by stalwarts of the Black Management Forum (BMF) has recommended action be taken against the organisation’s president and board members of its investment arm over serious governance concerns and financial irregularities.

But the embattled President of the organisation, Mpho Motsei, has hit back by counter-suspending those he says are trying to hijack the BMF.

A committee comprising BMF stalwarts was tasked with investigating complaints against Motsei and directors of the lobby group's investment arm.

The BMF’s prime mandate is to champion transformation in the corporate public sector.

Chaired by former and long serving BMF chair and MK Party MP Mzwanele Manyi, the committee found that the board members irregularly awarded themselves fee increases without obtaining shareholder approval. This was in conflict of Section 66 of the Companies Act.

It also found 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.

The 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.

BMF stalwarts 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.