SABC bosses jointly liable for unlawful Motsoeneng ‘success fee’
The Gauteng High Court (Johannesburg) yesterday 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.
TimesLIVE reports that the SABC board in 2016 approved and paid Motsoeneng R11.5m in two instalments, 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 court later ruled the payment unlawful, ordering Motsoeneng to repay the R11.5m plus interest, which pushed his total liability to about R18m.
It further found that the board members who approved the transaction acted without authority or mandate, making them jointly liable.
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.
‘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.
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.
