Backlash Erupts After De Lille’s Move to Dissolve SA Tourism Board

The move by Tourism Minister Patricia de Lille to disband the South African Tourism (SAT) board, which she had previously appointed, has faced backlash from industry stakeholders, the Organisation Undoing Tax Abuse (Outa), and the ousted board members.

A primary justification for the board’s dissolution was an alleged unauthorized meeting lacking a duly appointed chair, reportedly held on 1 August 2025. Former SAT board member Lawson Naidoo contends that this meeting did not take place, emphasizing that the previous chair had resigned in July.

Read: De Lille dissolves SA Tourism board

“The meeting she references as the basis for dissolving the board never occurred,” Naidoo asserts.

“Her reasons are factually incorrect and thus invalid. We are contemplating our next steps, including a potential court challenge.”

The minister took issue with the board’s actions—executed without a new chair—to place CEO Nombulelo Guliwe on precautionary suspension on 13 August for attempting to remove two SAT executives without following fair labor practices or board consultation.

This follows a qualified audit opinion from the Auditor-General in 2024, which highlighted a material irregularity of R4.1 million related to a partial prepayment made to a service provider in 2021 while Guliwe served as chief financial officer.

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Naidoo noted that the previous SAT board had commissioned a forensic audit into this transaction, which was presented to the new board in April 2025.

One of its main conclusions was to recommend initiating consequence management against Guliwe for the material irregularity. The board sought legal guidance on appropriate actions but did not receive De Lille’s consent.

Allegations of ministerial protection for CEO

Speculation continues that the minister is protecting Guliwe from consequences about the material irregularity highlighted by the Auditor-General. Earlier this month, Guliwe initiated the process to suspend the company secretary and chief marketing officer of SAT.

“In any suspension situation, employees must have a fair chance to respond. They were given barely a few hours before facing summary suspension.

“This was viewed as a violation of fair labor practices and a significant governance breach, which led us to place the CEO on precautionary suspension pending an investigation,” Naidoo explains.

Dissatisfaction has also been raised regarding the handling of Africa’s Travel Indaba in Durban in July, stemming from complaints by suppliers and exhibitors.

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In a press release, Outa claims that the board’s dissolution signifies extreme political intervention and constitutes a direct assault on governance and accountability within a state-owned entity.

“The SAT board acted within its mandate and in accordance with its fiduciary duties by addressing serious governance issues, including concerns raised by the Auditor-General and a supporting forensic investigation into financial irregularities,” Outa states.

“Instead of supporting her capable board in holding executive management accountable, the minister has opted to shield the SAT CEO by dissolving the very body responsible for oversight,” it adds.

Disappointment from TBCSA

The Tourism Business Council of SA (TBCSA) also expressed disappointment over the decision to dissolve the SAT board.

“In the past 24 hours, TBCSA engaged with both the Minister of Tourism and the now-dissolved board. Following these discussions, we were clear in our stance: the board had the ideal blend of expertise and leadership to address instability within SAT,” said Tshifhiwa Tshivhengwa, CEO of TBCSA.

“The minister’s decision to dissolve it does not align with our position and raises substantial concerns within the sector,” Tshivhengwa added.

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He stressed that the SAT board was on the path to establishing stability and continuity at a crucial time, stating, “Industry stakeholders had confidence in its composition, and we had observed promising signs of progress in enhancing SAT’s credibility and focus.”

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The SAT board reportedly urged the minister to appoint a new chair following Professor Gregory Davids’ exit to effectively carry out its functions, but De Lille allegedly delayed in making a decision.

In a statement released on Wednesday, De Lille mentioned that she was in the process of appointing new board members, which had nominated Naidoo as its spokesperson pending the election of a new chair.

De Lille asserted that the board acted prematurely and unlawfully in making that appointment, claiming that this responsibility lies with her under the Tourism Act. She noted that she had previously warned the board about potential repercussions for not adhering to proper procedures during special and ordinary meetings.

Outa condemns ‘political interference’

“Minister de Lille’s decision is disgraceful,” commented Wayne Duvenage, CEO of Outa.

“Outa has witnessed numerous boards of state entities fail in their oversight and fiduciary duties, leading to maladministration and corruption within these organizations. Therefore, when we see a state entity board acting with integrity and diligence, we must commend and support them.

“What incenses us is when a minister like De Lille intervenes to dismantle such a board. This kind of political interference and irrational behavior undermines accountability, encourages misconduct, and sends a message to all state entities that political protection supersedes governance.”

Outa has urged De Lille to promptly reverse her decision and reinstate the SAT board.

Should she fail to act, Outa has advised the members of the dissolved board to seek an urgent interdict in court to challenge the legality of her decision.

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