SIBONGAKONKE SHOBA

Political Correspondent

A DAY after Gauteng economic development MEC Firoz Cachalia criticised the excessive pay of Blue IQ board members, he backed down yesterday, apparently after the board had raised its concern over his utterances.

Cachalia caved in to pressure at a meeting where board members accused him of creating the impression that he had lost confidence in them, according to a senior official in his department.

On Tuesday, he lumped the Blue IQ board with the rest of Gauteng’s agencies, saying a recent review had revealed that “the agencies in general have demonstrated a significant lack of good corporate governance, which points to systemic failure of the executive teams and boards of directors”. Yesterday, however, he commended board members.

“I also wish to express my appreciation for the diligence with which the board and the management team have addressed the challenges faced by Blue IQ,” he said. No mention was made of the excessive fees, which a bench marking exercise found was much higher than those of other agencies or state entities.

Cachalia’s spokesman, Mandla Radebe, denied he had back tracked, saying he stood by his statement that the payments were excessive. “The MEC had to clarify the matter because an impression was created in the media that he was raising concerns about the competency of the board, which was not the case.”

Twelve Blue IQ board members were paid R4m for 13 meetings in the 2009-10 financial year and a process to cut the rate is under way. The chairman was paid R25000 a meeting and other members R20000.

The board was appointed during the short stint of Cachalia’s predecessor, African National Congress Gauteng chairman Paul Mashatile, as Gauteng premier early last year. Cachalia, who has already ended motorsport programme contracts, has turned down a nomination to Mashatile’s provincial executive. Since then, insiders say his days are numbered as MEC as Mashatile plans to reshuffle the provincial cabinet.

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Source: Business Day