| (1) | The Chief Executive Officer Officer vacates his or her office— |
| (b) | in the case of resignation, on the date the resignation takes effect; |
| (c) | on expiry of the term of his or her contract of employment; or |
| (d) | upon having been removed from office in terms of subsection (2). |
| (2) | Subject to subsections (6), (7), (8) and (9), the Board, in concurrence with the Minister, may remove the Chief Executive Officer from office in terms of subsection (1)(d)— |
| (b) | for failing to perform the functions connected with that office or to exercise the powers and to perform the functions adequately, diligently and efficiently; |
| (c) | if, because of any physical or mental illness or disability, the holder of that office has become incapable of performing or efficiently exercising the powers or performing the functions connected with that office; |
| (d) | where an irreparable breakdown in the working relationship between the Board and the Chief Executive Officer has occurred; |
| (e) | for being absent from duty or Board meetings, without the leave of the Board or for good reason. |
| (3) | If the Board for any reason needs to have any allegation or allegations levelled at the Chief Executive Officer investigated, or if the Minister requests an investigation of any matter relating to the Chief Executive Officer, the Board must request the Minister to institute a preliminary investigation. |
| (4) | If the preliminary investigation outcome indicates any of the grounds of removal in subsection (2)(a), (b), (d) or (e), the Minister must, within 60 days, proceed with the independent investigation contemplated in subsection (9). |
| (5) | If the preliminary investigation outcome does not indicate the grounds of removal in subsection (2)(a), (b), (d) or (e) but a lesser transgression, the Board must deal with the allegation or allegations in accordance with its internal disciplinary code. |
| (6) | The Chief Executive Officer may be removed from office for the reasons mentioned in subsections (2)(a), (b), (d) and (e) if the Board is satisfied that removal from office is justified in the circumstances and only— |
| (a) | on a finding to that effect by the Board after disciplinary proceedings contemplated in subsection (13) have been concluded; |
| (b) | on the adoption by the Board of a resolution calling for the Chief Executive Officer's removal from office; and |
| (c) | if the Minister concurs with the finding of the Board; or |
| (d) | in the event that the Minister does not concur with the findings of the Board, but is of the view that some other good cause found during the investigation contemplated in terms of this section justifies the removal of the chief Executive Officer, the Chief Executive Officer may be removed from office on such good cause shown if the Board concurs with the Minister. |
| (7) | The Chief Executive Officer may be removed from office in the case of subsection (2)(c), if the Board is satisfied that removal from office is justified in the circumstances based on the report and recommendation of a medical practitioner with the necessary expertise. |
| (8) | Where the Chief Executive Officer does not agree with the medical practitioner's report and recommendation contemplated in subsection (7), the Chief Executive Officer is entitled to obtain a second medical opinion from a medical practitioner of his or her choice and to submit such report and recommendation to the Board for consideration. |
(9)
| (a) | Where the Chief Executive Officer— |
| (i) | denies, or does not admit the allegation or allegations that are relied upon by the Board for the removal of the Chief Executive Officer in terms of subsection (2)(a), (b), (d) or (e); or |
| (ii) | alleges that the allegation or allegations do not justify removal from office, |
the Minister must, within 60 days, appoint an independent investigator to investigate the allegation or allegations levelled at the Chief Executive Officer.
| (10) | The independent investigator must, as soon as possible, but at least within a period of 60 days of his or her appointment, submit a report containing all the information gathered, any findings and recommendations to the Board. |
| (11) | The independent investigator must provide the Chief Executive Officer with a reasonable opportunity to provide any relevant information to the independent investigator, including a reasonable opportunity to respond to any allegation or show cause why the allegations do not justify his or her removal. |
| (12) | If the Chief Executive Officer, in the opinion of the independent investigator, fails or refuses fully or partially or adequately to co-operate with the independent investigator or in any other manner delays or undermines the investigation, the independent investigator may continue with the investigation in the absence of or without the participation of the Chief Executive Officer. |
| (13) | If there is evidence or information available which may support the allegation or allegations against the Chief Executive Officer or if the independent investigator for any reason so recommends, the Board must, within 60 days after receiving the report contemplated in subsection (10), institute disciplinary proceedings against the Chief Executive Officer in accordance with prescribed disciplinary procedure. |
| (14) | The Minister must appoint an independent Chairperson to preside over the disciplinary proceedings. |
| (15) | A disciplinary procedure instituted in terms of this Act must not be postponed, suspended or dispensed with as a result of criminal, civil or other legal action having been instituted, or pending the outcome of such action. |
| (16) | The Minister, after consultation with the Board, may, for any reason he or she deems fit, suspend the Chief Executive Officer from office, pending the outcome of the investigation contemplated in subsection (3) or (9) or disciplinary procedures contemplated in subsection (5) or (13), on any condition as to remuneration or any other matter relating to the employment of the Chief Executive Officer that the Minister, after consultation with the Board, may approve. |
[Section 13A inserted by section 8 of Act No. 48 of 2013]
