Public Enterprises goes after delinquent SOE bosses
The Department of Public Enterprises is taking action to have 92 former directors of SOEs declared delinquent because of their alleged role in state capture.
The Zondo Commission of Inquiry into State Capture recommended that delinquency proceedings be instituted against board members who had breached their fiduciary duties.
A Business Day report notes former SAA chair Dudu Myeni has already been declared delinquent and the department is pursuing 95 cases against 92 former directors including Eskom (13 cases), Transnet (25), SAA (25), Alexkor (22) and Denel (10).
The department’s Advocate Melanchton Makobe gave an update yesterday on the progress made in implementing the recommendations of the Zondo Commission.
Apart from the delinquency proceedings, other actions being taken include the referral of civil and criminal proceedings to the relevant authorities for investigation with a view to prosecution and the introduction of reforms at SOEs to ensure good governance.
A number of proclamations have been issued for the Special Investigating Unit to conduct investigations.
According to Makobe, contracts worth R14.7bn were subject to state capture in Eskom, while at Transnet the total value of tainted contracts identified by the commission was R41bn.
Public Enterprises Minister Pravin Gordhan introduced the department's presentation, noting that law-enforcement agencies were not making good progress in acting against corruption.
According to the Business Day report, Gordhan stressed that the difficult path of recovering from state capture and the devastating damage that it had caused would take time and involved rebuilding organisations to embody a culture of performance, accountability and efficiency.
‘The project of recovery is tortuous and full of potholes, and its hard work,’ the Minister said. Makobe said that in addition to the delinquency proceedings, the department was ensuring that individuals who failed to exercise their fiduciary responsibilities were disciplined by their professional bodies and were flagged and/or prevented from accessing employment opportunities across the three spheres of government.
A database of implicated officials had been established and the board appointment processes provided for in the draft National State Enterprises Bill was being refined.
Criminal and civil cases had also been opened.
He said the Companies & Intellectual Property Commission (CIPC) was investigating delinquency cases against four former directors of Eskom.
In addition, 56 evidence submissions had been prepared and referred to the CIPC on 13 November to assist the CIPC to initiate complaints against 60 former directors of Transnet, Denel and Alexkor.
‘The Department of Public Enterprises is on track to refer the remaining 35 evidence submissions to the CIPC by 31 December,’ Makobe told MPs.
The CIPC will have to approach a court for a delinquency declaration.
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.
