‘Board Exceeded Its Powers’: RTMC CEO Wins Urgent Bid to Overturn Eight-Month Suspension

The Road Traffic Management Corporation (RTMC) CEO, Advocate Makhosini Msibi, has won his urgent court bid to have his precautionary suspension lifted.

Msibi approached the Gauteng High Court in Pretoria to have his suspension declared unlawful, arguing that the Board did not have the authority to suspend him.

He had been on suspension for nearly eight months.

The Suspension

Msibi was placed on precautionary suspension in July last year following whistleblower allegations of financial misconduct and governance failures.

The Board delivered a letter advising him of the suspensionwith full pay, initially for 30 days, extendable to 60 days or “as may be reasonably necessary.”

Judge Jan Swanepoel noted that Msibi had now been suspended for almost eight months.

The Argument

Msibi sought an order that:

• His suspension be declared unlawful and set aside

• The Board’s decision to appoint an interim CEO be set aside

His core argument: the Board did not have delegated powers to suspend him.

The Board relied on a “Board Charter” which it claimed authorised the suspension.

Msibi countered that the authority to establish a Board Charter had not been delegated to the Board by the Shareholders Committeethe entity’s ultimate governing body.

The Ruling

Judge Swanepoel found that the structure of the RTMC is unlike other entities. It is controlled by the Shareholders Committee.

“The Board is bound to act within the confines of those powers specifically delegated to it by the Shareholders Committee.”

He rejected the Board’s argument that as the “accounting authority,” it had the power to take disciplinary steps.

The judge found that the Shareholders Committee is the accounting authorityand the Board did not have the powers to suspend Msibi.

He could also not find that the Shareholders Committee had delegated its powers to the Board.

The Outcome

The suspension was declared unlawful and set aside.

Msibi is to be reinstated.

The Bottom Line

Eight months on suspension. Whistleblower allegations. A Board that acted without authority. And a court that said: not lawful.

Msibi returns to work. The question now is what happens nextand whether the Shareholders Committee will finally step in.