The non-executive directors of Postbank, including the chair, have resigned with immediate effect over unfortunate events and circumstances between the minister and the board.
In a letter dated 12 September 2023 to communications minister Mondli Gungubele, the board accused him of an ‘oppressive and hostile’ attitude.
‘No self-respecting board can perform any meaningful work with the level of interference, undue pressure and influence that we’ve had. This obviously has deeply disturbed us’, according to the letter.
While they acknowledged the difficulties at the bank, the ‘negative treatment and hostility’ they suffered, undermined the bank’s credibility.
The dramatic resignation comes at a time when Postbank is under severe criticism over the mishandling of the welfare grant payment that has left thousands of pensioners stranded without money for a week.
The letter said that ‘This was particularly painful as we did everything in our power to manage and ameliorate consequent risk to the bank and hardship that would ultimately be suffered by the most vulnerable stakeholders of the bank, especially grant recipients’.
The board has quit just hours before government’s briefing on the SA Social Security Agency (Sassa) grant payment issues.
The directors listed at least six instances in which they wrote to Gungubele addressing various concerns, but received no reply.
‘We believe had the Minister had a genuine interest in assisting the board to resolve these legal issues for the benefit of Postbank, he would have provided an opportunity for engagement and for him to provide a solution, if he had one, for the consequences of cancelling the contract with its financial and social impact on one hand and continuing with the current arrangement until a solution is secured.’
Experts contend Postbank lacks the required capacity and technical infrastructure to do the job.