Hlaudi Motsoeneng’s bid to overturn R11.5m ‘success fee’ ruling rejected by SCA

The Supreme Court of Appeal (SCA) has dismissed an application brought by Hlaudi Motsoeneng to appeal the order declaring the decision by the then SABC board to pay him a R11.5 million “success fee” as unlawful and invalid.

On Monday, the SCA also declined to grant condonation to the controversial former SABC chief operating officer for the lapsed special leave to appeal with costs and ordered that he cover the costs expended by the SABC in defending the lapsed appeal, including the fees of two counsel.

In 2017, after the SABC board was reorganised, Motsoeneng’s employment was terminated on 12 June, following the convening of a disciplinary inquiry.

Motsoeneng received unauthorised R11.5m ‘success fee’

The SABC audit department, however, learned on 24 July, 2017, that Motsoeneng had received a “success fee” he was allegedly not entitled to.

The SABC’s Governance and Nominations Committee (GNC) authorised this amount based on the R1,19 million Motsoeneng clinched for a MultiChoice deal.

The GNC approved, with no authority or mandate, R11 508 549,12.

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In February 2018, the Special Investigating Unit (SIU) and the SABC jointly issued summons against Motsoeneng in the Johannesburg High Court to recover the success fee.

‘Success fee’ unlawful and invalid

The judgment made by the old board was deemed unlawful and invalid by the High Court in December 2021, which also ordered him to reimburse the R11.5 million with interest.

Motsoeneng then applied for leave to appeal. On 19 January 2023, the SCA dismissed with costs an application brought by Motsoeneng to appeal the order of the High Court.

On January 20, 2023, full bench of High Court declined to give Motsoeneng permission to appeal. “Mr. Motsoeneng’s application for reconsideration to the President of the SCA was granted,” his attorney said on November 29, 2023.

The SCA President gave the order for the topic to be debated in front of the SCA. After that, Motsoeneng was required to file the appeal record; however, the Registrar of the SCA rejected his late filing.

ALSO READ: SCA dismisses Hlaudi Motsoeneng’s application to appeal R11.5m payment ruling

After that, Motsoeneng had to request a pardon, which was ultimately granted. The appeal, however, lapsed because Motsoeneng once again filed his heads of argument after the deadline.

SIU welcomes ruling

The SIU welcomed the SCA’s ruling, saying that the original order stands and paves the way for the SIU to continue with the processes to recover the R 11.5 million “success fee” plus interest and legal fees.

The SIU was directed to investigate allegations of corruption, maladministration, malpractice, and payments made by the SABC, together with the conduct of its employees, and recover financial losses suffered by the SABC.

“In line with SIU Act 74 of 1996, the SIU is authorised to institute civil proceedings and refer evidence pointing to criminal conduct to the National Prosecuting Authority (NPA) for prosecution,” SIU spokesperson Kaizer Kganyago said.