Community Schemes Ombud Service Act, 2011 (Act No. 9 of 2011)Chapter 2 : Community Schemes Ombud Service28. Intervention by Minister |
| (a) | is in financial difficulty or is otherwise being mismanaged; |
| (b) | is unable to perform its functions effectively due to dissension among Board members; |
| (c) | has acted unfairly or in a discriminatory or inequitable manner; |
| (d) | has failed to comply with any law; |
| (e) | has failed to comply with any directive issued by the Minister under this Act; or |
| (f) | has obstructed the Minister, or a person authorised by the Minister, in performing a function in terms of this Act. |
| (2) | A directive contemplated in subsection (1) must state— |
| (a) | the nature of the deficiency; |
| (b) | the steps which must be taken to remedy the situation; and |
| (c) | a reasonable period within which the steps contemplated in paragraph (b) must be taken which period may not exceed six months. |
| (3) | If the Service fails to remedy the situation within the stated period, the Minister may, after having— |
| (a) | given the Service a reasonable opportunity to be heard; and |
| (b) | afforded the Service a hearing on any submissions received, |
| (c) | replace one or more members of the Board and where circumstances so require, appoint an administrator to take over the relevant function of the Service until the member or members of the Board has or have been replaced. |
| (4) | If the Minister appoints an administrator to take over a function of the Service in terms of subsection (3)— |
| (a) | the administrator may do anything which the Service might otherwise be empowered or required to do in terms of this Act; |
| (b) | the Board may not, while the administrator is responsible for that function, exercise any of its powers or perform any of its duties relating to that function; and |
| (c) | an employee or a contractor of the Service must comply with any lawful directive issued by an administrator in terms of this Act. |
| (5) | The Minister must, every six months, review the performance of the Service while it is under administration. |
| (6) | Once the Minister is satisfied that the Service is once more able to perform its functions effectively, the Minister must terminate the appointment of the administrator. |
| (7) | The costs associated with the appointment of an administrator must be borne by the Service. |