The Board of Pikitup has announced its decision to part ways with Managing Director Amanda Nair. In a press statement, the Board said that its decision was in the best interests of the company (a wholly owned entity of the City of Johannesburg), employees and the residents of the City of Johannesburg. The announcement was made on 9 September this year.

Charges against Nair 

Following allegations made by the South African Municipal Workers Union (SAMWU) against Nair, an independent forensic investigation into these allegations was completed by a third-party consultant. Thereafter, eight charges related to recruitment and remuneration of employees, and three charges related to procurement, were served.

Investigation by the Public Protector 

The allegations made by SAMWU against Nair were also reported to the Public Protector. An investigation into these and additional allegations, led by the Deputy Public Protector, is ongoing. Nair will have an opportunity to respond to the allegations against her in terms of Section 7(9) of the Public Protector Act.

Rationale

Nair is currently on special leave with full pay and Pikitup is obliged to continue to pay her for the duration of the enquiry, which is likely to continue for a large part of the remainder of Nair’s contract.

In extending Nair’s special leave on 30 June this year, the Board communicated to her that “in the event that you consider it necessary to communicate with the Board, any member of staff or indeed any person associated with Pikitup, we require that you do so through the Acting MD.” In response, Nair requested that matters pertaining to the disciplinary enquiry be communicated with the Chair of the Board which was agreed to.

Although Nair has denied that she is in communication with employees at Pikitup, there is evidence of such communication and in a letter dated 27 August 2016 Nair states “I wish to record that I shall talk to whomever I wish to.”

The Board said in its statement, ”This situation is quite obviously untenable and causes instability in the company. “

Financial implications of termination

According to the Board, the only legal and cost effective option is to end the employment relationship is to settle the remainder of the employment contract with Nair. The Board has taken action against her for violation of her duties as an Accounting Officer in terms of the Municipal Finance Management.

The Board has further stated that legal action in the civil courts will be instituted against Nair in terms of section 176 (2) of the Municipal Finance Management Act to recover the losses suffered by Pikitup if need be. The amount that is being claimed by Pikitup will be held in a trust account pending the resolution of the claim.