Hlaudi Motsoeneng, the former Chief Operating Officer of the South African Broadcasting Corporation (SABC), faced a significant legal setback when the Supreme Court of Appeal (SCA) ruled that he must repay R11.5 million awarded to him as a ‘success fee’ for securing a deal with MultiChoice.
Hlaudi Motsoeneng suffers heavy setback in Multichoice scandal
The SCA’s decision, delivered on Monday, 27 May 2024, upheld the High Court’s ruling that the payment was unlawful and invalid.
The Special Investigating Unit (SIU) welcomed the SCA’s decision, which not only dismissed Motsoeneng’s application for appeal with costs but also declined to grant condonation for his lapsed special leave to appeal.
This decision reaffirms the High Court’s original order, paving the way for the SIU to recover the R11.5 million, plus interest and legal fees, from Motsoeneng.
Here’s the background to the R11.5 million ‘success fee’
The controversy dates back to August 2016, when the SABC board decided to pay Motsoeneng a success fee for his role in securing a deal with MultiChoice.
In February 2018, the SIU and the SABC jointly issued summons against Motsoeneng in the High Court, Gauteng Local Division, to recover the success fee.
By December 2021, the High Court reviewed and set aside the board’s decision, declaring it unlawful and ordering Motsoeneng to repay the R11.5 million with interest.
Motsoeneng sought leave to appeal this decision, which led to a series of legal battles.
On 19 January 2023, the SCA initially dismissed his application for appeal with costs. The following day, the full bench of the High Court refused to grant leave to appeal.
Despite these setbacks, Motsoeneng’s attorneys succeeded in having his application for reconsideration heard by the President of the SCA, who ordered the matter to be argued before the SCA.
However, Motsoeneng faced further procedural challenges.
He missed the deadline to file the appeal record, which led to its rejection by the Registrar of the SCA.
His subsequent application for condonation was granted, but he again failed to meet the deadline for filing his Heads of Argument, causing the appeal to lapse.
The matter was eventually heard on Wednesday, 15 May 2024, culminating in the SCA’s recent ruling.
This case forms part of a broader investigation mandated by President Cyril Ramaphosa, under Proclamation R29 of 2017, directing the SIU to probe allegations of corruption, maladministration, and unlawful payments within the SABC.
The SIU, under the authority of the SIU Act 74 of 1996, is empowered to institute civil proceedings and refer evidence of criminal conduct to the National Prosecuting Authority (NPA) for prosecution.
