The Mandela Bay Development Agency is underperforming and its board must therefore be changed, mayoral committee member Andile Lungisa said.
He dropped the bombshell at a mayoral committee meeting on Thursday, to the surprise of all the senior managers.
He was backed up by mayor Mongameli Bobani, who said they were a new government and “everything must change”.
While discussing an agenda item on inner city development, Lungisa suggested a recommendation be added that the agency’s board should be reconfigured.
But acting city boss Noxolo Nqwazi proposed that the economic development department, which oversees the agency, rather submit a full report on the municipality’s oversight of the entity.
“Any other proposals with regard to the board can come through that item,” Nqwazi said, with the agreement of the mayoral committee members.
Bobani said they would definitely change the board.
“It’s normal that when a new government takes over and there’s a new collective government, everything must change,” he said.
“I still remember when the other government was taking over, they changed everything.”
However, when the DA, COPE, ACDP and UDM took over after the 2016 local government elections, the board was left unchanged.
After the meeting, Lungisa said he wanted the board changed to ensure all developments in the city were aligned to the vision of the new political leadership.
He said that underperformance was coupled with their reasons for wanting a change.
“The board is not performing. We’ve received presentations, we’ve received reports from the MBDA.
“We want to enhance capacity, infuse new energy and do things with a sense of urgency.”
The agency, which is governed under the Companies Act, is run by a board of directors as well as members of the Bay council and municipal officials who are called shareholder representatives.
To remove the board, the shareholder representatives need to give valid reasons, such as underperformance, and put it to a vote.
Thereafter, an annual general meeting would have to be held to communicate the decision to the board members.
This would ultimately have to be ratified by the council.
The agency’s spokesperson, Luvuyo Bangazi, said: “The appointment of directors to the board of the MBDA is the sole prerogative of the [metro] through council processes.
“The [council] being the sole ‘shareholder’ has no obligation to consult the MBDA on director appointments.
“Other than that, we have no further comment.”