Judgment reserved in Myeni delinquency case
The hearing of the application to have former SAA chairperson Dudu Myeni declared a delinquent director concluded in Gauteng High Court (Pretoria) on Friday, with Judge Ronel Tolmay reserving judgment while awaiting transcripts of the day's proceedings, says a Fin24 report.
Advocate Carol Steinberg, representing Outa and the SAA Pilots Association (Saapa), asked the court to declare Myeni delinquent, for, among other reasons, blocking a code-sharing deal between Emirates and SAA and allegedly delaying the approval of a deal between Airbus and SAA in 2015, which together allegedly cost SAA billions.
‘Ms Myeni's conduct is conveyed against standards expected of a reasonable director...she breached her duties as a director. She misrepresented facts to the shareholder, she misrepresented facts to Parliament,’ said Steinberg, making a reference to allegations that Myeni lied to Treasury about an Airbus/SAA swap transaction.
Steinberg also argued that it was in the public interest for Myeni to be declared a delinquent director for the rest of her life on grounds of gross negligence and wilful misconduct.
Outa and Saapa claim Myeni took instruction from former President Jacob Zuma not to sign a non-binding Memorandum of Understanding in 2015 between SAA and Emirates. In terms of this deal, Emirates would have had a flight agreement between Johannesburg and Dubai with the national carrier, giving SAA a guaranteed annual revenue of R1.5bn, according to Outa.
There was no proof Zuma influenced Myeni to block the Emirates deal, according to her counsel, Advocate Nqabayethu Buthelezi, in his closing arguments. He said the evidence presented does not support a case of malicious intent, notes Fin24.
‘It was not as the plaintiffs would like us to believe that it's something of sinister intention. There's not a single shred of evidence of maleficence, wrongdoing, theft, abuse of funds or even corruption,’ he is quoted as saying.
Buthelezi also argued that it was not necessary for Myeni to be criminally prosecuted as there was no evidence of wrongdoing.
‘Nothing else has been led to say there was untoward behaviour. The attempt to try and nudge the court in the direction to say there was wrongdoing – on what basis was that? On what basis must you then refer for criminal investigation? It's speculation in people's minds. That's not a legal basis. For a person to be declared a delinquent director, the conduct has to be grossly negligent and (show) willful misconduct. Where is the misconduct in the board trying to save the company money? I don't see it,’ Buthelezi added.
He asked the judge to dismiss the application and grant Myeni punitive costs.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.





