Leadership crisis at Black Management Forum after suspensions and damning probe

According to IOL, the Black Management Forum (BMF) has been plunged into a leadership crisis after an independent committee implicated president Mpho Motsei in governance failures and financial irregularities, and Motsei responded by suspending seven board members.

Standoff after independent report

According to IOL, the BMF board initially issued Motsei and two other members with “stay-at-home” orders following the committee’s report into governance irregularities. The report implicated Motsei in what it described as major governance lapses and financial irregularities.

According to IOL, Motsei rejected his suspension during an interview with eNCA and then issued suspension letters to seven directors, alleging they had held what he called “illegal meetings.”

Findings of the committee

According to IOL, the independent investigation found that Motsei, together with directors of the BMF’s investment arm, approved increases to their own board remuneration without obtaining the shareholder special resolution required under Section 66(9) of the Companies Act.

According to IOL, the report stated that Motsei and Thulani Mlangeni refused to recuse themselves from discussions about the 25% increase and other matters in which they were conflicted.

According to IOL, the committee also found that in July 2024 the board declared a R31 million dividend without conducting the solvency and liquidity test required by Section 46 of the Companies Act, concluding this declaration was a breach and raised concerns about the investment board’s fiduciary duties.

“Based on the evidence and information received by the Committee, it is our considered view that a prima facie case exists that members of the BMFI Board may have acted in contravention of the Companies Act through the approval and implementation of increases of their own board remuneration. The evidence before the Committee is sufficient to warrant a formal investigation and disciplinary process,”

Recommended sanctions and governance steps

According to IOL, the committee recommended that Motsei be reprimanded for using the organisation’s name in his personal disputes and that a disciplinary committee be established to investigate Motsei and other affected directors.

According to IOL, the committee advised that, in the absence of evidence showing continued eligibility, Thulani Mlangeni should be deemed to have vacated the Mpumalanga provincial chairperson position and thus cease serving on the BMF board.

According to IOL, the committee also reported that the student chapter had not held a national conference since May 2024 and recommended that Richard Molefe be removed as student chapter chairperson because his term had expired.

Allegations and legal response

According to IOL, former BMF board member Papama Mnqandi accused Motsei of orchestrating a “BMF heist.” According to IOL, Motsei responded by filing a R2,5m defamation suit in the South Gauteng High Court, saying the allegations were false and damaging.

What this means for the BMF

According to IOL, the committee was tasked with addressing board dysfunction, alleged misconduct, and compliance with the BMF’s Memorandum of Incorporation, and it set out recommendations aimed at restoring governance and institutional stability, including formal disciplinary processes.

According to IOL, the BMF’s managing director Monde Ndlovu could not respond at the time of publication.