The Special Investigating Unit (SIU) has won a landmark judgment forcing three SABC executives to pay back the R11.5-million in unlawful payments they approved to controversial former chief operating officer, Hlaudi Motsoeneng, almost 10 years ago.
The judgment was delivered in the Johannesburg High Court last week after the trio failed to oppose the SIU’s case.
In September 2016, Mbulaheni Obert Maguvhe, Ndivhoniswani Aaron Tshidzumba and Maleshane Audrey Raphela approved “success payments” to Motsoeneng for allegedly securing more than R1-billion in funds for the public broadcaster.
The payment was later declared unlawful, so the SIU applied to court for the recovery of the funds, first from Motsoeneng, but he appealed to the Supreme Court of Appeal, which dismissed his application. The debt then, including interest, came to approximately R18-million. Again, he appealed, but when, on September 18 last year, the ConCourt declined to hear the appeal, Motsoeneng’s avenues to escape paying closed.
By then, the SIU had taken his pension of R6 476 515, but since this was not enough to satisfy the debt, it demanded the remainder from the trio.
On Monday, Judge Allyson Crutchfield ruled that Maguvhe (second defendant), Tshidzumba (third defendant), and Raphela (fifth respondent) are jointly and severally liable for the payment of just over R11 5-million, meaning the SIU can now recover the entire amount from any one of them.
“The second, third and fifth defendants are ordered to pay the Special Investigating Unit the amount of R11 508 549.12, together with interest a tempore morae from date of service of summons to date of payment, jointly and severally, the one paying the other to be absolved,” reads the judgment.
The order stipulates that interest on the amount will be calculated a tempore mora (from the time of delay), effective from the date the summons was originally served.
In addition to the substantial financial repayment, the defendants were also ordered to cover the legal costs of the SIU, including counsel fees, also jointly and severally.
The default judgment indicates that the three either did not file opposing papers or failed to appear in court to defend themselves.
The high court ruling represents a victory for the SIU in its ongoing efforts to hold individuals accountable for corruption and to recoup losses suffered by the public purse.
The order empowers the SIU to take swift enforcement action to collect the debt, including potentially seizing assets from the defendants.
The SIU is mandated to investigate such matters and institute civil proceedings to recover stolen state money.
