News

The Battle to Protect North West Transport Investment

Committees Dispute Appointment of Business Rescue Practitioner

The North West Provincial Legislature’s Portfolio Committee on Public Works and Roads, Community Safety, and Transport Management, led by Hon Mmoloki Cwaile, and the Portfolio Committee on Premier and Finance, led by Hon Aron Motswana, have voiced their disagreement with the Office of the Premier, Department of Community Safety and Transport Management, and Provincial Treasury on the current condition of the North West Transport Investment (NTI).

At a recent joint meeting, both committees denied that the appointment of Business Rescue Practitioner (BRP) Mr. Thomas Samson had been authorized by the government. Instead, they praised the provincial government’s efforts to save the NTI Group and their plan to raise R500 million in funds to pay employee salaries and the entity’s creditors.

The committees also supported the plan to remove the improperly appointed BRP, who has not positively contributed to the rescue attempts. The joint meeting emphasized that the appointment of the BRP did not follow the correct procedures, neither through the Executive Council (EXCO) nor a board resolution.

Pursuing Criminal Investigation against the BRP

Hon Cwaile mentioned that the Committee aims to file a criminal case with the Department of Police for Criminal Investigations (DPCI), also known as the Hawks. The case would deal with the BRP’s criminal behavior, including the alleged awarding of contracts to family members, flawed supply chain processes, and the improper disposal of the entity’s assets.

The Committee also disagreed with the idea that the EXCO had no involvement in the business rescue process, referring to provisions in the Companies Act of 2008. Hon Cwaile clarified that shareholders, such as EXCO, have consultative rights and can partake in business rescue plans, suggest alternative strategies, and reject plans that alter rights associated with securities. Shareholders can also vote on business rescue plans that involve changes to class securities rights.

The committee’s position on NTI remains resolute, and they continue to back the Department of Community Safety and Transport Management in their legal fight against the BRP to ensure his prompt removal. They have also acknowledged the appointment of a new legal team focused on reviewing litigation work already done, challenging the BRP’s appointment, and attempting to interdict and restrain him.

Investigating NTI and Providing Support

Hon Cwaile recommended that the Provincial Treasury conduct an internal audit on the NTI Group and investigate and validate the amounts claimed to be owed to creditors. The committee also supported the provincial government’s decision to make budget adjustments to find the necessary funds for employee salaries and creditor payments.

He also expressed disappointment in the provincial government’s delayed actions to address the financial health of the entity and care for the workers. This delay has led to one employee committing suicide due to the frustration of non-payment.

Hon Motswana asked the Department of Community Safety and Transport Management and the NTI Group to provide all necessary records, reports, and documentation to the committee within 14 days. This information would help initiate investigations by the Special Investigative Unit (SIU) into the mismanagement, corruption, and other acts of misconduct at NTI.

In summary, both committees strongly oppose the appointment and actions of the current BRP and support efforts to pursue legal action against him. They remain steadfast in their commitment to save the NTI Group and ensure its financial stability and well-being for the employees and creditors.

Zola Naidoo

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