Chartered accountant declared delinquent director twice
A chartered accountant has found himself on the wrong side of the law because of questionable ethics and conduct. Phumlani Zwane’s protracted legal fight with the Companies and Intellectual Property Commission (CIPC) has been brought to an end by the Gauteng High Court (Pretoria), which has declared him a delinquent director twice over, says a Daily Maverick report.
In the first instance, the delinquency runs from 2014 to November 2019.
In the second instance, the delinquency is effective from 8 August 2019, the date of the judgment, and runs for seven years.
The court found in favour of the CIPC, which in its three-part application had sought to have Zwane pronounced guilty of wilful misconduct and a breach of trust as a director.
Zwane is now CFO at Unisa and represents the institution on the Unisa Enterprise and the Purchasing Consortium Southern Africa.
The report says his troubles began in November 2011, when he was appointed to the board of the SA Nuclear Energy Corporation (Necsa) by the Energy Minister at the time.
During that period, Zwane was the CFO of the National Development Agency and deemed a state employee. The then Energy Minister communicated the Necsa board appointment to Zwane in a letter in which she spelt out the terms, including his preclusion from extracting director’s fees from Necsa.
However, Zwane proceeded to earn the director’s fees from Necsa while simultaneously drawing a salary at the development agency as its CFO.
The essence of the case against him is the fact that state employees are not entitled to director’s fees, which constitute a second income.
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