BBSL in last minute bid to dismiss Molefe, Showa again

  • April 19th, 2021 - 1 min, 50 secs read

BBSL in last minute bid to dismiss Molefe, Showa again

It is a race against time for the outgoing Botswana Building Society Limited (BBSL) Board as it hatches a last-minute plan to expel Managing Director and Board Secretary for the second time in a month.

WHAT IS AT STAKE:  The moves comes after the High Court today set aside a previous decision by BBSL to terminate contract of employment for Managing Director, Pius Molefe and Board Secretary, Sipho Showa.

WHAT DID THE COURT SAY: Justice Tebogo Tau ruled in favour of Showa and Molefe saying their employer did not comply with provisions of the company Constitution. Justice Tau also found that a Board meeting held on Easter Monday to terminate the two employees was invalidly constituted.

WHAT IS THE LATEST: Not to be outdone, the Board is said to be looking into last minute options to get rid of Molefe and Showa before their tenure ends on April 24. The lawyer said the Board will use a possible loophole in the BBSL Constitution to pass a resolution that allows Board Members to terminate management contract again without the need of a meeting.

“They want to pass a resolution without a meeting tomorrow. The Constitution has a gap which allows majority of Board members to pass a resolution. It has to be an anonymous resolution of Board members but this one says it can be done by majority of Board members. We think this was a mistake. We will fight it if it comes,” said Chilisa.

WHAT IS THE BACKGROUND: The matter comes after BBSL filed an application on April 9, 2021 seeking to temporarily terminate the contract of two of its employees accused by the Board of operating outside their mandate with respect to upcoming Board election on April 30, 2021. The Board term in office ends on April 24. Five out of the eight members are up for re-election on April 30, 2021 but preferred their tenure extended for 90 days. However, BBSL management was of the view that Board positions must be open for contest.

“They want re-election without a contest. They are not prepared for a contest. That’s what the fight is about,” Mboki Chilisa, lawyer representing Molefe and Showa told INK24. Chilisa said ultimately the shareholders will make a decision on April 30, 2021.

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