Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Telkom's data growth story still has years to run: CEO

      Telkom’s data growth story still has years to run: CEO

      2 June 2026
      Why Telkom is pouring capex into IT - Serame Taukobong

      Why Telkom is pouring capex into IT

      2 June 2026
      Reserve Bank draws a line on inflation - Lesetja Kganyago. Siphiwe Sibeko/Reuters

      Reserve Bank draws a line on inflation

      2 June 2026

      Clashing judgments leave South Africa’s crypto law unsettled

      2 June 2026
      Telkom's four-year SIU standoff awaits a final ruling

      Telkom’s four-year SIU standoff awaits a final ruling

      2 June 2026
    • World
      Astronomers discover exoplanets with magnetic fields

      Strange winds reveal magnetic fields on distant ‘hot Jupiters’

      2 June 2026
      Nvidia's first CPUs to debut in Windows laptops this week

      Nvidia CPUs to debut in Windows laptops this week

      31 May 2026
      Watch: Bezos rocket erupts in fireball during ground test

      Watch: Bezos rocket erupts in fireball during ground test

      29 May 2026
      AI boom hands Samsung chip workers life-changing bonuses

      AI boom hands Samsung chip workers life-changing bonuses

      27 May 2026
      Luce lit: Ferrari unveils its first electric car

      Luce lit: Ferrari unveils its first electric car

      26 May 2026
    • In-depth
      Alfa's electric rebel - Alfa Romeo Junior Elettrica Veloce

      Alfa’s electric rebel

      29 April 2026
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
      The biggest untapped EV market on Earth is hiding in plain sight

      The biggest untapped EV market on Earth is hiding in plain sight

      1 April 2026
      AI, cybersecurity power standout year for Datatec - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
      The last generation of coders

      The last generation of coders

      18 February 2026
    • TCS
      TCS | Charge's R1.8-billion bet on an off-grid EV future - Charge chairman Joubert Roux

      TCS | Charge’s R1.8-billion bet on an off-grid EV future

      18 May 2026
      TCS+ | The Up&Up Group on the hidden cost of AI - Jason Harrison

      TCS+ | The Up&Up Group on the hidden cost of AI

      13 May 2026
      Michael Rossouw

      TCS+ | The retirement decision most South Africans get wrong

      6 May 2026
      TCS | The Cape Town start-up listening for TB with AI - Braden van Breda

      TCS | The Cape Town start-up listening for TB with AI

      4 May 2026

      TCS+ | ‘The ISP for ISPs’: Vox’s shift to wholesale aggregator

      20 April 2026
    • Opinion
      Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

      Treasury’s crypto crackdown is a betrayal of Mandela’s promise

      22 May 2026
      South Africa is sleepwalking into another AI policy failure - Celeste Labuschagne

      South Africa is sleepwalking into another AI policy failure

      20 May 2026
      AI won't fix your culture - it will expose it - Jackie Kennedy

      AI won’t fix your culture – it will expose it

      19 May 2026
      Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

      Free calls, dead voice and Shameel Joosub’s Spanish ghost

      22 April 2026
      The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

      The conflict of interest at the heart of PayShap’s slow adoption

      26 March 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » Usaasa CEO suspended after breakdown with board

    Usaasa CEO suspended after breakdown with board

    By Duncan McLeod4 May 2018
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Lumko Mtimde. Image: GCIS

    The suspended CEO of the state-owned Universal Service & Access Agency of South Africa (Usaasa), Lumko Mtimde, has come out guns blazing against his employer in the labour court, accusing the agency’s board and its chairman, Mawethu Cawe, of acting in “retaliation” against him.

    This, he claimed, was the result of him reporting what he has described as the “unlawful actions” of the board to national treasury, the auditor-general and the minister of telecommunications & postal services.

    Mtimde has accused the board of the long-troubled agency, which was established to improve ICT services in underserviced communities, of acting unlawfully. In legal correspondence seen by TechCentral, Usaasa has denied these allegations.

    I am advised that I qualify for protection in terms of section 3 of the Protected Disclosures Act, having reported the conduct and actions of the board…

    TechCentral revealed on Thursday that Mtimde had been suspended in mid-March. This only came to light last week when Usaasa briefed members of a parliamentary portfolio committee on the agency’s annual performance plan.

    “The suspension relates to allegations of various acts of misconduct,” Usaasa said on Thursday in response to questions from TechCentral. It declined to comment further, saying disciplinary hearings were confidential.

    Mtimde took the Usaasa board to the labour court on 24 April on an urgent basis, but the court decided the matter wasn’t urgent. Mtimde said the court would still consider the case “on the normal court roll”. He vowed to fight a cost order against him.

    In a letter to Mtimde, asking him to explain why he shouldn’t be suspended, Cawe wrote: “The reason for the disciplinary hearing is based on the information at the disposal of the board suggesting among other (things) that you are in breach of your contract of employment; you have been grossly negligent and incompetent in carrying out your duties; you have deliberately failed to follow reasonable instructions given to you by the board; and you have been grossly dishonest in the manner you have conducted yourself as the accounting officer of Usaasa.”

    He was then suspended on 14 March, with Usaasa employees asked in a company e-mail to “desist … contact with the CEO during his period of suspension … (to) preserve the integrity of the disciplinary inquiry and protect potential witnesses from possible undue influence or intimidation”. Cawe promised to convene the disciplinary hearing within 60 days of the suspension (13 May).

    ‘Unlawful actions’

    In court documents filed by Mtimde’s attorneys, the suspended CEO hit out at the Usaasa board and Cawe, accusing them, among other things, of “acting in retaliation” after he, Mtimde, reported what he described as the “unlawful actions” of the board to national treasury and the telecoms minister, Siyabonga Cwele.

    Cawe wrote to Mtimde on 23 February informing him of the board’s intention to suspend him pending formal disciplinary proceedings.

    The court documents show the list of allegations against Mtimde is lengthy, but some of the more serious ones include that he:

    • Failed to process and disclose to the board a letter prepared by Makhubela Attorneys about terminating contracts with set-top box manufacturers. (Usaasa is responsible for disbursing funds for government-subsidised set-top boxes for poor communities, itself the subject of legal contestation.)
    • Failed to institute a process for the audit of 100 000 set-top boxes and antennas in terms of the contract signed with manufacturers and under a resolution of a board committee, thus “exposing the agency to huge financial risks and damages claims”.
    • Sent a letter, without authorisation, to set-top box manufacturers binding the agency to the payment of the exchange-rate variance without being authorised to do so.
    • Failed to observe protocol by ensuring that communication with the executive authority (government) was approved by the board prior to it being sent.
    • Altered minutes of a meeting and added sections in the governance agreement that were not approved by the board and then failed to alert the board to these “substantive changes”.
    • Deliberately provided false information to government regarding a decision of the board on payments to a service provider responsible for rural broadband roll-out.
    • Went against a resolution of the board by inducing the company secretary to take a lower salary than she was promised. This was “aimed at undermining the authority of the board and second-guessing its decisions”.
    • Was persistently absent from work without authorisation.
    • Failed to resign from the boards of other entities after committing to do so the telecoms minister.
    • Failed to correctly manage a process around a contract with software supplier SAP.
    • Failed to execute various board resolutions.

    Mtimde, however, has denied the allegations and, in correspondence to Cawe explaining why he should not be suspended, accused the board of “fighting back revengefully and victimising me for challenging their unlawful actions…”

    In his founding affidavit in the labour court, Mtimde said the decision to suspend him was “actuated by malice and absolute bad faith and constitutes abuse of power”. He intimated that there was a serious breakdown in relations between himself, Cawe and other members of the board. He said the board meeting which took the decision to suspend him was itself unlawful.

    “I am advised that I qualify for protection in terms of section 3 of the Protected Disclosures Act, having reported the conduct and actions of the board to the national treasury, the auditor-general and the minister both in respect of the appointment of the company secretary and the overall conduct of the board,” he said, adding later: “I submit that it is abundantly clear that I am being punished both for refusing to carry out unlawful instructions and for reporting the unlawful actions of the board.”

    He accused the board of violating his “right to dignity” by “humiliating” him “through an unwarranted suspension”, adding that he has “earned a good reputation in the broadcast and IT sectors” and the suspension will “only serve the purpose of damaging (his) reputation”.

    The suspension, which he said is “based purely on suggestion and innuendo”, will have “an adverse effect on my standing”. It will be “difficult in future to regain such standing should this suspension in particular be allowed to stand”.

    He claimed in the court affidavit that he is “being punished for standing up to governance lapses by the board”.

    Mtimde said the allegations against him have either already been investigated or dealt with either through reports submitted or decisions taken by the board or its committees, or are the subject of pending legal and other processes. His affidavit goes to great length to refute many of allegations levelled against him. Most of the allegations “have been dealt with or investigated” or are “simply old”, he said.  — © 2018 NewsCentral Media

    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Lumko Mtimde Mawethu Cawe Siyabonga Cwele top Usaasa
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleFacebook researching ad-free, subscription version
    Next Article Billionaire Buffett ditches IBM for Apple

    Related Posts

    Communications minister Solly Malatsi. Image c/o DCDT

    Usaasa’s 30-year run nears its end

    23 April 2026
    How a connectivity levy became a tax on telecoms

    How a connectivity levy became a tax on telecoms

    17 April 2026
    Usaasa publishes framework for universal service fund

    Usaasa publishes framework for universal service fund

    24 February 2026
    Company News
    The hidden infrastructure behind AI - Open Access Data Centres OADC

    The hidden infrastructure behind AI

    2 June 2026
    South Africa's R450 000 school fees problem has a tech answer - CambriLearn

    South Africa’s R450 000 school fees problem has a tech answer

    2 June 2026
    Addressing the 57% blind spot: Kaspersky on measuring SOC effectiveness

    Addressing the 57% blind spot: Kaspersky on measuring SOC effectiveness

    2 June 2026
    Opinion
    Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

    Treasury’s crypto crackdown is a betrayal of Mandela’s promise

    22 May 2026
    South Africa is sleepwalking into another AI policy failure - Celeste Labuschagne

    South Africa is sleepwalking into another AI policy failure

    20 May 2026
    AI won't fix your culture - it will expose it - Jackie Kennedy

    AI won’t fix your culture – it will expose it

    19 May 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Telkom's data growth story still has years to run: CEO

    Telkom’s data growth story still has years to run: CEO

    2 June 2026
    Why Telkom is pouring capex into IT - Serame Taukobong

    Why Telkom is pouring capex into IT

    2 June 2026
    Reserve Bank draws a line on inflation - Lesetja Kganyago. Siphiwe Sibeko/Reuters

    Reserve Bank draws a line on inflation

    2 June 2026
    The hidden infrastructure behind AI - Open Access Data Centres OADC

    The hidden infrastructure behind AI

    2 June 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}