The high court in Pretoria has found that the Road Traffic Management Corporation (RTMC) board acted unlawfully in suspending its boss, setting aside both the suspension and a key internal governance document relied upon by the board.
In the judgment delivered yesterday, Judge Clute Swanepoel found the RTMC board did not have the legal authority to place CEO Makhosini Msibi on precautionary suspension in July 2025.
Court finds suspension unlawful
“The applicant’s suspension must be reviewed and set aside. As far as the board charter is concerned it must, equally, be reviewed and set aside… the declaration of invalidity of the charter must be suspended for a brief period to allow the shareholders committee to delegate to the board the authority to adopt a charter within the provisions of the act,” the judge found.
Msibi approached the court challenging the RTMC board’s decision to suspend him with full pay following whistle-blower allegations of misconduct, including fraud, corruption and wasteful expenditure.
The board argued it was empowered to suspend the CEO in terms of internal governance instruments, including a board charter, and provisions in Msibi’s employment and performance agreements.
However, the court found that the board’s powers were strictly limited under the Road Traffic Management Corporation Act.
In terms of the act, the RTMC is overseen by a shareholders’ committee comprised the minister of transport and provincial MECs.
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Delegation of authority questioned
According to the judgment, the committee has the authority to appoint a board and must determine which powers are formally delegated to it.
Swanepoel ruled there was no evidence the committee had delegated the power to suspend the CEO to the board in writing, as required.
The judge ruled that the board only exercises powers specifically delegated to it by the committee and the board had failed to produce proof of such delegation.
The judge further held that the board’s adoption of its 2024 board charter was also unlawful because it had not been authorised by the shareholders committee.
The court set aside the suspension decision and the board charter
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