/ 10 November 2000

Soros sacks SA foundation board

Barry Streek

Financier George Soros’s Open Society Foundation (OSF) is to axe the board of its South African arm, which has been wracked by in-fighting. Soros has written to the board, which includes several government officials, informing them of his plans to replace them next month.

The move follows several conflicts between board members – particularly over the replacement of the organisation’s former chief executive, Michael Savage, who announced in November last year that he wanted to retire. Savage has not yet been replaced and there have been differences within the board about the extent to which affirmative or representative criteria should be used when selecting his replacement. Sources close to the foundation say there have also been clashes over the presence of government officials on the board, after some members learned that the foundation discouraged the inclusion of government representatives on its boards. Among the members of the current South African board are Mojanku Gumbi, legal adviser to the presdient, Leah Gcabashe, chief director of corporate services in the legal division of the presidency, and Tony Heard, special adviser to Mini-ster in the Office of the President Essop Pahad. Sources said the potential conflicts about the role of these officials were highlighted in 1997 when it emerged that a letter to the foundation requesting funding had been leaked to President Thabo Mbeki. The letter, addressed to Savage, was written by then chief executive of the Institute for Democracy in South Africa (Idasa), Wilmot James. In his letter James said closer attention would have to be given to maintaining democracy under Mbeki. James, whose comments incurred the wrath of the ruling party, subsequently quit Idasa. The board is chaired by Brigalia Bam. Its other members include Judge Fikele Bam; GT Ferreira of Rand Merchant Bank; Alex Boraine, deputy chair of the Truth and Reconciliation Commission; Hans Middelman, a retired banker; Zyda Ryland, a senior executive at Wooltru; JB Magwaza of Huletts; Peter Sullivan, editor of The Star; Rhoda Kadalie, director of the Impulelo Innovation Awards; and Tim Modise of the SABC. Frederick van Zyl Slabbert is no longer a member of the OSF board, but he is in charge of OSF’s Southern African operations, while Helen Zille, the Democratic Alliance MEC for Education in the Western Cape, resigned last year after her appointment. Most members of the board, which will have its penultimate meeting in Durban on Saturday, approached by the Mail & Guardian refused to say anything about Soros’s decision, but Sullivan said: “I think it is an excellent decision and I support it fully.

“I think many of the people, like me, have been involved for eight years when we first agreed about funding strategies and it is time for them to be changed. I think there is a need for new people. Throughout the world, Soros has taken similar steps to involve younger people in his projects. His real purpose is to support democracy and look at new levels of democracy – and not keep on old farts like myself.” Sullivan said he did not believe government officials should serve on the OSF board: “Our code of conduct specifically excludes any member of government because the Soros Foundation supports democracy and not the government.”

The OSF board is to meet in Durban on November 11 before Soros arrives in South Africa to appoint a new board on December 10.

In his letter to board members, Soros expressed his gratitude to them and said they had achieved much since the OSF was established in 1993 but he felt the best way forward was to appoint a new board. He also cited the failure to appoint a successor to Savage, the presence of officials who defended government policy at a high level and difficulty in obtaining quorums for meetings. Soros said that he felt the best way forward was for the existing board to step down and for it to be renewed by the appointment of new members. His visit in December would be used to thank the old members and introduce the new members, he said.

The foundation has concentrated mainly on funding science, education and criminal justice projects.