MDDA, CEO at war after her suspension for refusing to sign employment contract for CFO

THE state-owned entity, Media Development and Diversity Agency (MDDA), finds itself in a human resources mess after the suspension of its Chief Executive Zukiswa Potye, for refusing to sign a contract for its chief financial officer Yaseen Asmal.Image: Facebook

THE state-owned entity, Media Development and Diversity Agency (MDDA), finds itself in a human resources mess after the suspension of its Chief Executive Zukiswa Potye, for refusing to sign a contract for its chief financial officer Yaseen Asmal.Image: Facebook

Published May 23, 2022

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The state-owned entity, Media Development and Diversity Agency (MDDA), finds itself in a human resources mess after the suspension of its chief executive, Zukiswa Potye.

The Star has learnt from sources inside the MDDA management that Potye was suspended after she refused to sign a contract for the MDDA’s Chief Financial Officer (CFO), Yaseen Asmal.

In a letter seen by The Star, Minister in the Presidency Mondli Gungubele demanded a response from MDDA board chair Hlengeni Mathebula on the “complaint received by the Public Services Commission on allegations of the irregular extension of appointment contract of the CFO of the Media Development and Diversity Agency”.

In the letter, Gungubele tells Mathebula that he (Gungubele) was informed that the board had unilaterally converted the CFO’s employment contract from a five-year term of office to permanent employment.

Responding to Gungubele, Mathebula said: “The MDDA board fails to understand why Ms Potye, given her involvement in the appointment of the CFO and given her recommendations to the board, lodged a complaint with the Public Services Commission and furthermore, now refuses to prepare a permanent employment contract for the CFO.”

In concluding the letter, Mathebula makes an admission that Potye is in fact suspended for declining to sign the CFO’s contract.

“Finally, it should be noted that Ms Potye was subjected to a disciplinary inquiry in respect of her failure to ensure that the CFO has signed an employment contract. The MDDA board therefore views Ms Potye’s complaint simply as an act of retaliation,” Mathebula said.

Sources inside the MDDA management have revealed to The Star that Potye was victimised when the board attempted to twist her arm into signing the appointment letter.

“The position of CFO was always a five-year term and she was uncomfortable with being made to sign something that was clearly wrong. The board could turn around and charge her for doing something outside of the book.

“As chief executive she had to protect her integrity and do things according to the book, it’s what the PSC (Public Services Commission) expects.

“The contract and how it came about was not procedural and she declined to sign it,” the source said.

The source further said that Potye seemed to interrupt a corrupt “funding model”, in which people linked to board members were funded by the organisation.

The Star is investigating two transactions in which the beneficiaries are linked to two members of the board.

“She (Potye) was charged last year but the charges didn’t stick,” the source said. The Star is in possession of a report compiled by legal firm Lungile Mtiya and Associates, who held a disciplinary investigation into Potye in February, 2022 and reported that “Potye was not guilty of six charges, as had been reflected on the charge sheet.”

The Star is in possession of two emails in which two members of the board discuss “getting rid of Potye because she doesn’t listen”. The Star has sent questions to the board members.

Asked why his contract was converted to a permanent appointment and if he was aware of any corrupt activity that could have influenced his appointment, Asmal told The Star that “the matter is subject to an inquiry”, and he was therefore unable to comment.

Board chair, Mathebula, said the issues were subject to an inquiry at the CCMA. “We are therefore unable to respond until the process has been concluded.

“The board of MDDA follows good governance and transparent practices on all funding decisions, any conflicts of interest are declared prior to any decisions,” he said.

Asked if he was aware of any family members or persons with links to the board received funding from the MDDA, Mathebula said: “To our knowledge no family members of the board have received funding from the MDDA.”

On what his relationship with Potye was like, Mathebula said: “The relationship is that of a chairperson of the board and a chief executive of an organisation.”

Asked why she was really suspended, Potye said she couldn’t speak to the media because there was an ongoing inquiry.

This is an ongoing investigation by The Star.

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