Dismissed MBDA directors and Mandela Bay Municipality reach settlement

APRIL 20, 2016

The High Court Application in which four of the directors of the Mandela Bay Development Agency (MBDA), who were removed from office on 4 April 2016 by the members of the MBDA sought urgent interim relief against the municipality was sensibly settled amongst the parties on Tuesday morning, the Nelson Mandela Bay Municipality communications office says.

"In terms of the settlement agreement, the municipality undertook not to replace any of the four applicants (Messrs Bono, Mfuleni, Gosani and Dlulane) on the board of the MBDA pending the outcome of an action which must be instituted by them by 10 May 2016 in which they challenge the validity of their removal. If they do not institute the action by that date, the agreement will lapse," reads a statement from the municipality posted on a local blog.

"In addition, the company secretary of the MBDA was ordered not to notify the CPIC of the removal of the applicants as directors, pending the outcome of the above action.

"Accordingly, the Council of the municipality will on Thursday, 21 April 2016 at its scheduled meeting consider the nominations which have been received for the remaining 11 vacancies on the board and proceed to fill them."

The municipality said it welcomes the settlement "which will enable the Council to appoint a board of directors which will be responsible for maintaining stable governance of the MBDA and overseeing the implementation of those projects provided for in the strategic plan approved by it and the Council of the municipality".