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Cape Town – The Companies and Intellectual Property Commission (CIPC) is in "deep trouble" and possibly on the "verge of collapse", according to the Democratic Alliance (DA).
This follows the shock resignation on Monday of CIPC commissioner Astrid Ludin, who told staff that she could not continue “without the support of the minister of the Department of Trade and Industry (dti) [Rob Davies].”
Ludin’s internal letter, which Business Day published on Monday, explained her decision to resign, after “allegations of misconduct and corruption intended to discredit me and some members of my management team”.
A forensic report was handed to the dti last week, which allegedly finds her guilty of contravening the Public Finance Management Act, as well as non-compliance with technical procedures and processes, according to DA shadow minister of trade and industry Geordin Hill-Lewis.
Call for full hearing
Hill-Lewis told Fin24 on Monday that action was needed urgently. “The department should release the report and we must have a full hearing into the allegations,” he said.
The DA Member of Parliament, who sits on the Portfolio Committee on Trade and Industry, said the CIPC’s deputy commissioner appeared before their committee last week Wednesday, without mentioning any issues regarding their entity.
“It was interesting that Astrid Ludin wasn’t there, because she always attended before,” he said. “It makes sense now.”
Hill-Lewis said he has written to the chairperson of the committee, requesting Davies appear before the committee as soon as possible.
“At this appearance, Minister Davies must both table the Gobodo forensic report, and account for the allegations made against him by … Ludin.”
Ludin claims that the Gobodo report gives no substance to the allegations made against her, and that she had no option but to resign as there was a “concentrated effort to remove her from her position” and a “desire to see her exit the position”, Hill-Lewis said.
Davies must be transparent
“Amidst the uncertainty surrounding this issue, the only way for the minister to provide clarity is for him to account to the portfolio committee on the contents of the Gobodo report, and to provide the prima facie evidence on which the initial notice of intention to suspend was based.
“It should not be left for DA members of the committee to have to file PAIA (Promotion of Access to Information Act) applications to access documents in order to carry out constitutionally mandated oversight,” he said. “Davies must be transparent in this regard and play open cards.”
The CIPC has been fragile for some time now, said Hill-Lewis. “This includes issues around non-performance and strike action that has affected the CIPC,” he said. “Everyone complains about it. Even their website doesn’t work.”
Further delays will compromise CIPC
“It’s not good enough that we’re [the committee] only hearing about the issues when the commissioner resigns,” he said.
He said the CIPC plays a vital role in the registration of companies, business rescue practitioners and corporate names, maintaining data, regulating governance of and disclosure by companies, accrediting dispute resolution agents, and educating and informing about all laws relating to companies.
“Its institutional reputation cannot be compromised, and any further delay will do just that.”
