The future of Proudly South African CEO Leslie Sedibe at the organisation hangs in the balance after the board decided not to renew his contract, which comes to an end in August.

News24 has seen the board's resolution which was taken on June 10 in Rosebank where the board was asked to review whether it would consider to automatically renew Sedibe's contract or to advertise the post internally and externally for a suitable candidate.

According to the document, the board took a decision not to renew Sedibe's contract and that the position should be advertised internally and externally for a suitable candidate.

Bribery scandal

Sedibe made headlines recently when the former South African Football Association [SAFA] CEO launched a R5-million lawsuit against his former employers for defamation, according to a June 20 Sunday World report.

According to a Sport24 report, Sedibe is currently serving a five year ban [and was fined over R300 000] from all football-related events after allegedly fixing friendly Bafana Bafana games in 2010.

The ban was reportedly imposed on Sedibe in March 2016 after news broke that South Africa allegedly paid R10-million to host the FIFA World Cup.

However, Sedibe accused SAFA officials, including current CEO, Dennis Mumble, of tarnishing his name and reputation.

Sedibe laughed when News24 asked him if he could confirm the information about his contract.

"I cannot comment on anything I do not know about. I am still waiting for the board to come back to me on the matter," he said.

However, at least three sources confirmed that the decision was taken and that the board wanted a new CEO.

A source who spoke to News24 on condition of anonymity said the board was not happy with Sedibe.

"The board has basically lost confidence in him. We are concerned about his reputation. He does not treat others with respect and he has tantrums, we want a new CEO," he said.

Eligible to reapply

Another source who asked to remain anonymous because he feared reprisal said Sedibe's contract was coming to an end and there was no clause in his contract which said that it must be automatically renewed.

"The board took a decision to advertise and he is eligible to reapply for the position, we are just following the [rules]," he said.

Another source said: "The board's biggest concern was the relationship between him and the Department of Trade and Industry [DTI], which has completely broken down because of a combination of factors. That is the main reason, we cannot afford to have a bad relationship with the DTI."

News24 understands that the PSA, which is a local campaign that lobby's the private and public sectors and consumers to buy South African products, received over R30m annually from the DTI and generated the rest of its funds from the private sector.

Acting board chairperson Josephe Maqhekeni confirmed that a decision was taken by the board not to renew Sedibe's contract.

Following 'correct processes'

"A view was taken not to renew his contract and to advertise the position and follow fair processes with him being part of the applicants if he was interested in the position."

Maqhekeni said the decision was not because the board had lost confidence in Sedibe or that it was unhappy with him.

"The board was very pleased with his work. They just want to follow the correct processes."

Maqhekeni said Sedibe's five-year contract ends in August.

DTI spokesperson Sidwell Medupe confirmed that Sedibe's position would be advertised and he was eligible to reapply for the position.