Court rules in favour of axed NYDA CEO

By Drum Digital
21 October 2013

Axed NYDA CEO Steven Ngubeni must be reinstated as his dismissal from the agency was unlawful, the Labour Court ruled.

Axed NYDA CEO Steven Ngubeni must be reinstated as his dismissal from the agency was unlawful, the Labour Court in Johannesburg ruled on Monday. Judge Andre van Niekerk said a decision by the National Youth Development Agency (NYDA) to fire Ngubeni was in breach of his contract of employment. "The termination of employment is set asideand the applicant [Ngubeni] is reinstated in the first respondent's [NYDA's] employ until there has been compliance with clause 10.1 [of the contract]," the judgment reads. The NYDA was ordered to pay the costs of the proceedings. Clause 10.1 of the contract states employees could be fired after a disciplinary hearing found them guilty, if they committed a "breach ofmaterial obligation", or if they were found guilty of any act which would entitle the NYDA to terminate employment.

On October 8, the NYDA board decided to fire Ngubeni after it came to the conclusion he was guilty of financial mismanagement and gross dereliction of duty.

"The decision was taken in circumstances where an independently chaired enquiry, initiated by the NYDA and appointed to hear the case against Ngubeni had not yet completed its work," the judgment reads.

Ngubeni reportedly faced seven charges related to signing off loans later converted to grants in three projects valued at over R30 million, before the approval of the board.

-by Sapa

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