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Tourism Turmoil! South Africa's Minister De Lille Unleashes Shake-Up, Dissolving Board Amid CEO Conflict

Published 1 week ago4 minute read
Precious Eseaye
Precious Eseaye
Tourism Turmoil! South Africa's Minister De Lille Unleashes Shake-Up, Dissolving Board Amid CEO Conflict

South Africa's tourism sector has been plunged into significant governance turmoil following a series of contentious decisions and interventions by the Minister of Tourism, Patricia de Lille, concerning the South African Tourism (SAT) board and its Chief Executive Officer, Nombulelo Guliwe. The crisis began when Minister de Lille publicly rejected the SAT board's decision to place Guliwe on precautionary suspension, labeling the move as “unlawful.”

According to the Minister's statement, the SAT board lacked the mandate to suspend its CEO because it was “not properly constituted.” This assertion was based on legal advice which indicated that the board was ineligible to take such a critical decision after its chairperson, Professor Gregory Davids, resigned on July 31, 2025. Without a chairperson, the board was deemed incapable of lawfully convening a special meeting or making resolutions of this nature.

The SAT board had initially announced Guliwe’s immediate suspension pending an investigation into alleged misconduct, with intentions to appoint an interim acting CEO to ensure business continuity. However, Minister de Lille's intervention highlighted a deep divide over governance and due process, with the Minister reiterating her commitment to “adherence to sound governance principles” and pledging to address the matter directly with the board.

The dispute escalated further, culminating in Minister de Lille's decision to dissolve the entire South African Tourism Board and remove its members, effective immediately. This action was taken in terms of section 16(3)(a) of the Tourism Act, which empowers the Minister to dissolve the board for good cause shown. The primary reason for the dissolution was the board's failure to address the legality of the procedure followed when it convened a special Board meeting on August 1, 2025, during which the unlawful resolution to suspend the CEO was taken.

Legal advice provided to the Minister confirmed that the special Board meeting of August 1, 2025, was unlawfully convened. Section 18(2) of the Tourism Act, along with clause 9.1.2 of the Board Charter adopted on April 16, 2024, explicitly states that only the Board Chairperson is empowered to convene a special board meeting. With Professor Gregory Davids having resigned on July 31, 2025, there was no chairperson to lawfully convene the meeting on August 1, rendering the board's actions unlawful and ultra vires its powers.

The Minister had previously cautioned the board about the implications of failing to follow due process in convening meetings. In a meeting on July 4, followed by a letter on July 13, 2025, Minister de Lille expressed concerns that such failures could undermine the board's integrity and render its outcomes procedurally invalid. Despite the board's assurances in a letter dated July 22, 2025, that it had put in place interventions to ensure all meetings were properly constituted, the subsequent events led to the board's dissolution.

The department emphasized that the board, as a creature of statute deriving its powers from the Tourism Act and Board Charter, must always adhere to the principle of legality as enshrined in the South African Constitution. This dispute underscores the critical importance of stable, transparent leadership and robust governance frameworks for the tourism sector, especially as South Africa strives for post-pandemic recovery and global relevance.

Looking ahead, the Minister will initiate the process to appoint a new board under section 13(3) of the Act, inviting nominations for eligible persons. In the interim, one or more persons will be appointed to manage the board's affairs. The Department of Tourism has assured the public and the sector that these developments will not derail ongoing programs, including collaboration with the Tourism Business Council of South Africa (TBCSA) for the G20 summit and the implementation of the Tourism Growth Partnership Plan.

The Minister is also finalizing plans for the inaugural Tourism Investment Summit, scheduled for September 10, 2025, in Cape Town, which will showcase bankable infrastructure projects to local and international investors. Furthermore, the country will observe Tourism Month in September, featuring the announcement of winners from a hackathon for digital solutions developed by students from higher education institutions. These initiatives align with the Government of National Unity's priorities of driving inclusive growth, job creation, poverty reduction, and building a capable, ethical state, reinforcing the need for unity and focus in the tourism sector.

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