Africa-Press – South-Africa. The Gauteng High Court has dealt a significant blow to former SABC executives, ordering that they personally repay R11.5m they unlawfully approved as a “success fee” for former COO Hlaudi Motsoeneng.
The ruling marks a major victory for the Special Investigating Unit (SIU) in its long-running legal battle to hold individuals accountable for the misuse of public funds at the national broadcaster.
In August 2016, the SABC board approved and paid Motsoeneng R11.5m in two instalments on September 12 and 13 2016, rewarding him for his role in securing a controversial MultiChoice deal.
At the time, then SABC Group CEO James Aguma motivated the payment, claiming Motsoeneng had raised R1.19bn “for the benefit of the SABC”.
However, the high court later ruled the payment unlawful, ordering Motsoeneng to repay the R11.5m plus interest, which pushed his total liability to about R18m. In its ruling, the court further found that the board members who approved the transaction acted without authority or mandate, making them jointly liable.
According to court papers, the SABC attempted to stop Motsoeneng from cashing out his pension in July 2017, warning the pension fund to withhold his benefits as civil proceedings were under way. When the fund refused without a court order, the broadcaster launched an urgent application in the Gauteng division of the high court to freeze the payout.
On Thursday, the SIU welcomed the default judgment handed down by judge Allyson Crutchfield, which holds former board members Mbulaheni Obert Maguvhe, Ndivhoniswani Aaron Tshidzumba and Maleshane Audrey Raphela responsible for repaying the money with interest from the date of service of summons. They were also ordered to cover the SIU’s legal costs.
https://www.timeslive.co.za/news/south-africa/2024-09-19-hlaudi-motsoeneng-loses-appeal-siu-nets-r6m-and-sets-sights-on-more/
“This ruling is a crucial enforcement action stemming from the broader litigation concerning the unlawful R11.5m success fee paid to Motsoeneng,” said SIU spokesperson Kaizer Kganyago.
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