Gungubele fires Postbank board

PRETORIA - Communications Minister, Mondli Gungubele, has fired the Postbank's remaining board members.

This, following the earlier resignation of a majority of the board in protest at alleged interference by the minister.

The removal of the board follows damning allegations from a KPMG forensic investigation report that the Postbank has been using illegally contracted service providers and paying them millions, without valid contracts and proper procurement processes being followed.

The forensic report recommended the shareholder act against the Board of Directors.

Before the release of the forensic report, PostBank was mired in numerous scandals over governance issues, which prevented it from gaining a full banking license so as to act as a developmental state bank.

In the interim, the minister has appointed Khayalethu Ngema as Postbank administrator pending the appointment of a new board.