Some corporate governance truth we may try to avoid on the Pomoma waste management thing.
People who are in attendance in green are not councillors.It’s councillors who make resolutions after getting expert advice from those invited and present.The decision is for the council and its done by vote.Those other people don’t vote!
In board meeting we often invite auditors, engineers and many other experts to present or give expert opinion but they don’t make decisions because that will be irregular.The experts and even company secretary asks permission to speak.Council meeting is same as board meeting.
If you invite 200 people to a board meeting of 9 people it’s only the 9 people who vote because its a board meeting no matter who else is attending.
This was a council resolution and those councilors in red are wholly responsible for the mess and no one else.If they were overwhelmed by those in attendance tough it’s the councillors weakness.If they needed expert advice it was their call to adjourn meeting to review expert advice from those invited or in attendance…even for weeks considering the impact…even time to consult their residents but hey they were just weak or incompetent.
If this was a corrupt deal whoever responsible for the corruption has made the council stew because it is a council resolution and contract binding.They were shrewd by making the resolution valid from the start.And my understanding is capex, projects, jv and investment aren’t management decisions by council decision.
The only way out of it will be if the notice was defective, or there was no quorum, or the councillors had conflict of interest etc not that newly elected councillors don’t want a deal in a council they were not members.The councillors made the ministers job pretty easy to approve….to him it’s their decision.If they were arm twisted behind the scenes it’s pretty tough to prove.
Even in a criminal court this will just fail to sail thorough.Incompetence is not a crime.Reversing this in a civil court tough.Other populist political action will be walking on eggs.Those councillors did the did!
Brian Sedze is a strategy, tax and corporate governance practitioner [email protected]