The recent suspension of several Ingonyama Trust board members continues to spark controversy and possibly legal challenges. Today, the minister of land reform and rural development, Mzwanele Nyhontso, condemned the suspension as unlawful, stating that king Misuzulu kaZwelithini overstepped his authority.
On Christmas Eve, Misuzulu appointed Stephen Rakwena of Van Rensburg Kruger Rakwena Attorneys to act on his behalf and suspend members of the Ingonyama Trust Board. However, Nyhontso, as the entity’s executive authority, asserted that only the minister has the authority to decide who to appoint, remove, or suspend from the board.
“It therefore follows that the king acted ultra vires by suspending the members of the board. This power is solely placed on the minister,” Nyhontso said in a statement issued earlier today.
A board divided
This year, the Ingonyama Trust board has faced significant challenges, including internal conflicts and external scrutiny. In December 2024, King Misuzulu kaZwelithini, who chairs the board, suspended the CEO, CFO, and several board members.
The Ingonyama Trust, established in 1994, manages approximately 2.8 million hectares of land in KwaZulu-Natal under Zulu customary law. The Trust has been under scrutiny for its governance and land management practices.
In 2024, the parliamentary land reform committee expressed concern over the trust’s affairs, highlighting issues related to land reform and governance.
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Legalities to consider
Nyhontso said the Ingonyama Trust is established by the KwaZulu-Natal Ingonyama Trust (act 3KZ of 1994), with the Ingonyama as the sole trustee. A 1997 amendment of the act established the board to administer the trust’s land and affairs, and the act also defines the role of the Ingonyama.
Section 2A(3)(b) and (c) of the act empowers the minister to appoint eight board members, designate a vice-chairperson of the board (since the king, as sole trustee, also serves as chairperson of the trust), and make regulations. The appointment of board members must follow consultations as outlined in subsections (b) and (c).
Nyhontso further explained that the act empowers the minister to make regulations and emphasises that the trust is a Schedule 3A national public entity under the Public Finance Management Act (PFMA), Act 1 of 1999.
As such, its public finance responsibilities are governed by the PFMA. According to the PFMA, the executive authority for a national public entity is the cabinet member accountable to parliament for that entity or under whose portfolio it falls. In the case of the Ingonyama Trust, this is the minister of land reform and rural development.
Nyhontso, as the executive authority, has control over the trust as stated in Section 1 of the PFMA. This control includes the power to manage the trust’s financial and operating policies to benefit from its activities. For example, Nyhontso can appoint or remove all or most members of the board or its equivalent governing body.
Minister holds the reins
From the provisions of both the PFMA and the Ingonyama Trust Act, the minister is therefore the highest authority when it comes to the board.
“On the commissioning as well as appointment of the service provider to conduct the investigation, again the king acted ultra vires in that he did so outside of and without the board as provided for in the Financial Regulations of the Act.
“This almost falls into the very same category of actions the king is purporting to be addressing with the commissioning of the investigation,” Nyhontso said.
The decision to suspend the board members and action of the king to choose to run the board on his own, with the “sole unaffected board member”, not only flies in the face of good corporate governance but will also not stand legal scrutiny if challenged, he added.
“The consequence of these actions that are ultra vires is that the board remains in office until the minister decides otherwise, even then only after following proper processes.”
Nyhontso added that the Ingonyama Trust Act of 1994 and the PFMA guide his actions as the minister of land reform.
He promised to engage with the chairperson and other board members of the Ingonyama Trust to address concerns related to governance, supply chain management, PFMA violations, or any other relevant issues.
The minister also stated that they will fulfill their responsibilities regarding the appointment and removal of board members as necessary.
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