In a dramatic turnaround, the city's chief financial officer has withdrawn the resignation he handed in just over two weeks ago. But the municipality says it's too late.
In a dramatic turnaround, the city's chief financial officer has withdrawn the resignation he handed in just over two weeks ago. But the municipality says it's too late.
Chief Financial Officer Danny Sahibdeen handed his resignation to municipal manager Pravine Naidoo on 15 July, after just six months in the job.
In an exclusive interview with Grocott's Mail this week, explaining why he had retracted his resignation, he also explained why he had resigned in the first place.
Sahibdeen painted a picture of frustration at being handed the enormous task of ensuring a clean audit for the municipality this year – but not receiving the support he needed.
"On 19 June at the audit committee meeting I indicated that I would be very happy to receive support from the stakeholders in order that we can turn the municipality around, or [at least lift it]out of the disclaimer of audit opinion," Sahibdeen said on Wednesday.
"It is a tall task to get out of a disclaimer of audit opinion. "And I could not do this single-handedly, especially within six months."
Much of Sahibdeen's frustration lies with an ultimatum from Naidoo.
He told Grocott's Mail of a confidential meeting with the municipal manager on 10 July, where he was presented with a report from the internal audit unit.
The report indicated areas that required attention.
"He gave me up to 12 July to give him a report on what I would do about the problems," Sahibdeen said. "During the discussion he said to me he would like a qualified audit opinion in August, failing which he would be happy to receive my resignation."
Within five days Sahibdeen had given him just that. In his resignation letter, a copy of which Grocott's Mail has in its possession, Sahibdeen wrote, "…As I leave I wish to indicate that the decision has been a tough one. "It is regretted that single-handedly I am unable to deliver a qualified audit opinion by August 2013.
"Further it would be grossly negligent if I should not inform you timely. I believe that to prolong the letter of resignation, in terms of our meeting of Wednesday 10 July 2013 would be very irresponsible."
Sahibdeen said when he became CFO he knew he it would not be easy.
"I understood that there was a serious challenge and I was prepared to take up the challenge for the betterment of the community of Makana and staff of the municipality to turn the place around," Sahibdeen said.
He'd felt that without the necessary support, however, this was an impossible task.
A doctor's note dated 17 July indicated that Sahibdeen would be on sick leave until 31 July.
Sahibdeen surprised everyone when on Wednesday he handed a letter to the municipal manager, retracting his resignation. He told Grocott's Mail he had every reason to do so.
"I have every intention to retract my resignation by the end of business today (31 July), which is my last day."
He said it was up to the municipality to decide whether that would be just another day at work, or the day he would be kicked out completely.
He said the basis of his subsequent retraction was discussions he'd had with his staff.
"They expressed concern of being in the same situation as they had been during the absence of the previous CFO," Sahibdeen said.
In a further twist, Sahibdeen said he hadn't received any acknowledgement that he had quit. Instead, the first indication that his resignation had been processed was a newspaper advertisement advertising his post on 19 July – four days after he handed in his letter.
At the time, municipal spokesperson Mncedisi Boma told this newspaper that Sahibdeen had resigned for personal reasons and confirmed that they had advertised his post.
Yesterday he was not aware that Sahibdeen had retracted his resignation.
"What I know is that the Mayoral Committee noted the CFO's resignation and it was agreed that the post must be advertised."
Boma said it was too late for Sahibdeen to withdraw his resignation. "An advert is out already… we are waiting for the administrative process to fill in a very critical position in the institution," Boma said in a telephone interview yesterday.
"We received a voluntary resignation and that is how we are ending this chapter… our position won't change. "As an institution we don't have a CFO," he said, adding that Marius Crouse would act in that position.
Chairperson of the newly formed Makana United Business Chamber, Lungile Mxube, commenting on Sahibdeen's retraction, said, "It is a welcomed decision. If the municipality is operating without a CFO it puts the ratepayers money in a risky situation. It is important to have a CFO from an investor and local business perspective."
ANC regional secretary in the party's Sara Baartman Region Scara Njadayi said the Regional Executive Committee had been informed about Sahibdeen's resignation.
"I don't think the municipal manager held a gun to the CFO's head to resign," Njadayi said. "I will not be able to comment on administration matters… but the national target is to have clean audits by 2014."
"Makana has constantly been having disclaimers and adverse audit opinions…every municipality has to meet the national target of clean audits by 2014."
