/ 21 November 2006

Minister to probe Post Office problems

The government will investigate the conduct of the South African Post Office board and management after the suspension of CEO Khutso Mampeule, Business Day reported on Tuesday.

It quoted Communications Minister Ivy Matsepe-Casaburri as saying she has ”set in motion processes to this effect”.

She did not reveal what form the probe will take.

The minister denied in a statement that she has ”taken sides” with any party, saying she will ”investigate the actions of both the board and management”.

Mampeule was suspended with full pay on Friday at a meeting of the Post Office’s board, pending the outcome of a disciplinary case against him.

Board chairperson Phiti Tskudu said the board had lost confidence in Mampeule.

”He appears to undermine the board’s authority and his impartiality has been called into question with regard to the management of the planned forensic audit the board has commissioned to investigate allegations around improper tender practices.”

On Monday, Mampeule reportedly said he is the victim of a ”smear campaign” by members of his board.

He said he is seeking legal advice on whether to sue the company.

This will make Mampeule the second CEO to take action against the Post Office.

His predecessor, Maanda Manyatshe, who resigned last week as MTN managing director after Mampeule laid criminal charges against him for tender fraud, is suing the Post Office for R100-million.

The Communication Workers’ Union (CWU) on Monday called for all managers and board members to be suspended pending a forensic audit into its contracts.

It said it would challenge Mampeule’s suspension if this was an attempt to divert attention from the corruption probe. Last month, Mampeule told Parliament seven Post Office executives had resigned or been axed in the past 18 months as a result of his anticorruption drive.

About 13 suspect contracts have been uncovered and cancelled during a comprehensive audit of all contracts.

Mampeule said his fight against corruption has ”affected some powerful and well-connected people” on the board.

”I believe my suspension is an attempt to divert attention from my concerted effort to uproot corrupt actions.”

Matsepe-Casaburri said she was informed of Mampeule’s suspension a day after it happened.

The step was only taken after the board asked him to take leave of absence.

”When he refused, he was put on suspension,” the minister said. – Sapa