CEO DID NOT DESERVE CONTRACT RENEWAL

MBABANE - The Sincephetelo Motor Vehicle and Accident Fund (SMVAF) former Board has been accused of softness regarding the manner in which it handled the contract renewal of the organisation’s chief executive officer (CEO).

The SMVAF Salary Review Implementation Probe Report, which was compiled by a probe team headed by Dr Sikhomba Gumbi, has been handed to the Minister of Finance, Neal Rijkenberg who is yet to present it to Cabinet.

The findings of the report remain allegations until proven otherwise.
It is stated in the report that the CEO was evaluated and received a score which was considered low for a CEO.

Decision

“However, the Board took a decision to recommend renewal of the CEO’s contract on the basis that he was close to retirement.  This is why he was to be offered a two- year contract which would have expired when he reached 60 years. In this case, the Board put the CEO’s personal circumstances above the organisation which should be their primary focus,” the report states.

It was also mentioned that the Board also expressed its unhappiness with the performance of the human resource manager and outlined areas where he was failing to deliver and were particularly not impressed with the handling of the salary review and performance management system. 

Proposed

“Instead of dealing with the performance of the human resource manager, directly or via the CEO, the Board proposed to recruit additional props to support the HR Manager. These included an industrial relations officer, legal officer, and a talent management expert,” it was highlighted.
According to the report, normally in a salary review the senior management does not benefit from the outcome on the basis that they are drivers of the process on behalf of the employer. 

“In this case the Human Resource Manager was allowed to lead the salary review yet he ended up being a major beneficiary of the review outcome.  There is evidence of conflict of interest in the manner in which he handled certain decisions relating to the salary review,” it was mentioned.

The report states that such a scenario implied that he was an EXCO member and that he attended Board meetings with CEO and the CFO. 
This, according to the report, the CEO and the Board did not ensure independence of the salary review. 
“It can be argued that the Board did not perform its oversight function properly in that it did not put in place proper structures for running the organisation such as a properly constituted executive team,” the report states.

Discovered

Also contained in the report is that the executive unfairly benefitted from the salary review.
The report states that although the Executive members were not benefiting from the salary review, it was discovered that they were being paid a car allowance while they also benefitted from utilising company cars.

“Further investigation revealed that the Board had raised a concern on motor vehicles that had been procured by the Fund which were utilised by the Executive,” the report states.

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