Thabo Dloti survives no-confidence bid amid explosive R32bn Rand Mutual tender probe

Prominent businessman and Rand Mutual Assurance (RMA) chairperson Thabo Dloti has allegedly survived an attempt to remove him amid an escalating governance crisis linked to a disputed multibillion-rand investment advisory tender.

Sunday World understands that two urgent board meetings were convened last week after revelations contained in whistleblower reports and an 18-month forensic investigation by law firm ENS.

At a meeting on Friday evening, non-executive directors debated findings that allegedly implicate Dloti and other senior figures in governance failures surrounding a procurement process linked to RMA’s R32 billion investment portfolio.

A highly placed source said directors discussed tabling a motion of no confidence against Dloti but the proposal failed after the board split evenly. Sunday World has been informed that board member Tjaart Esterhuyse has since been appointed acting chairperson.

The controversy centres on RMA’s efforts to replace long-serving investment adviser Willis Towers Watson (WTW).

After a competitive procurement process, 27four, Alexforbes, Novare and Selekane were shortlisted. Although no bidder was initially appointed, a revised proposal later emerged that would have retained WTW while awarding 27four a mandate covering private-market and unlisted investments.

This came under scrutiny after whistleblower complaints alleged procurement irregularities and governance failures.

ENS found that former RMA executive Thiru Pather participated in evaluating 27four despite having recently served on investment committees linked to the asset manager.

The report said she became involved in aspects of the process while associated with 27four and received confidential procurement information.

Although Pather disclosed her prior relationship with 27four, investigators found that a conflict-of-interest assessment was completed only after key decisions had been taken.

ENS further alleged that scoring adjustments during the evaluation improved 27four’s relative position. Pather denied manipulating the process and said any amendments were aimed at correcting formulas rather than changing results.

The investigation also concluded that RMA’s board never approved either the decision to replace WTW or the associated request-for-proposals process.

ENS alleged that deputy board chair Koketso Mabe incorrectly represented the process as having board approval and suppressed documents reflecting management’s objections.

The report said Mabe, who chaired the investment committee, allegedly pressured management to proceed with the 27four process despite objections, played a role in referring Pather for employment at RMA, influenced recommendations favourable to 27four and directed the removal of an exco memorandum opposing the procurement process from the board portal. Investigators also found that Mabe relied on what he described as a board mandate despite being unable to identify a board resolution authorising the process.

The report identified broader governance concerns, concluding that aspects of the procurement process created significant risks and could discourage employees from raising concerns.

Investigators also examined an alleged undisclosed commercial connection involving Dloti. Dloti chairs Prescient Investment Management while a Prescient group company provides fund administration services certain 27four products. ENS also noted that Sithega, a company Dloti helped establish, holds shares in Prescient Holdings.

In a separate management report, a whistleblower alleged that Dloti and a female RMA executive were “rumoured to be involved romantically”. The whistleblower further alleged that Dloti was promoting the executive as a potential successor to RMA CEO Mandla Shezi. The allegations were not independently verified.

The dispute deepened after RMA management wrote to shareholders, accusing the board of failing to properly address concerns raised in whistleblower reports and the draft ENS investigation.

A separate legal opinion by advocate Anton Myburgh SC reportedly warned that management could be obliged to report implicated directors to regulators and law-enforcement authorities if the board failed to act on the findings.

RMA’s Esterhuyse said:“We are committed to the highest standards of ethical conduct, accountability and good governance. RMA believes that the integrity and independence of this process are critical. At the same time, it is essential that neither the organisation nor individuals named in the allegations are prejudged before the relevant facts have been established.”

Sunday World’s attempts to get comment from 27four were unsuccessful, but a News24 article stated that chief executive Fatima Vawda rejected suggestions that her company benefited from preferential treatment.

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