Court warns delinquent director Dudu Myeni after yet another no

Thursday, May 5, 2022
author picture Ethan Guerin
trends
Video/image source : youtube, i0wpcom/
Original content created by news.limited staff

Court warns Delinquent Director Dudu Myeni After Yet Another No Show

The Court has warned delinquent director Dudu Myena to uphold high standards or face jail. This comes after she failed to make herself available for an evidence hearing. It's a shame for her and for the public as a whole. She has repeatedly failed to comply with the court's demands. Despite this‚ she's still been in the spotlight.

Court warns delinquent director Dudu Myeni to abide by high standards

The High Court in Pretoria has warned dulinquent director Dudu Myeni of the consequences of not observing high standards. The former SAA chairperson was declared a delinquent director by the judge. He ordered Myeni to stop holding directorships and to abide by high standards. He will have to quit several directorships‚ including his current one as the director of Centlec‚ the state-owned utility which supplies the Mangaung metro. He will be subjected to a lifetime order‚ but he can appeal the ruling‚ but only if he shows that he is in need of rehabilitation. Myeni's actions at Centlec were clearly unacceptable and the Court found this to be evidence in support of the delinquency order. Although Myeni's legal counsel has indicated she intends to appeal the decision‚ the judge concluded that Myeni has little chance of winning her case on appeal and that the court should not suspend her delinquency order until she has remedied the misconduct. The case was brought by SAA‚ Organisation Undoing Tax Abuse‚ SAA Pilots Association and SAAPA. The Court labelled Myeni dishonest‚ reckless and grossly negligent. Tolmay ordered Myeni to pay the costs of the plaintiffs and two counsel and referred evidence of his actions to the National Prosecution Authority. The Court concluded that Myeni breached her fiduciary duty to the shareholders of SAA by failing to abide by its fiduciary duty. Her actions were deemed a breach of her duties under section 76(3) of the Companies Act. By failing to comply with her duty‚ Myeni inflicted substantial harm to the SAA‚ and she is liable to prosecution under section 162(5) of the Companies Act. In June 2017‚ Outa filed an application to declare Myeni a delinquent director. This decision was subsequently upheld by the Court. Myeni still holds directorships at the Jacob Zuma Foundation‚ the Mangaung metro and Centlec. She has also lost four other applications with costs orders. Apart from this‚ Myeni's responsibility only lies with her chairmanship of SAA. This judgment has been cited as a further example of Myeni's inability to comply with high standards. Despite his failure to act in a professional manner‚ Myeni continued to misuse Zuma's name to get what she wanted. In October 2015‚ he allegedly pressured former SAA CEO Bezuidenhout to pull out of a deal with Emirates that would have earned SAA R1.5 billion per year. By failing to act in a proper manner‚ Myeni brought the country within hours of a cross-default‚ which would have had grave consequences for the fiscus. Further‚ he failed to call an urgent board meeting that would have prevented the airline from defaulting on pre-delivery payments that amounted to R1.6 billion. Myeni was found guilty of a number of breaches‚ including failing to complete the Swap Transaction. This contributed to the company's breach of its financial reporting obligations. The PFMA requires the Board to prepare and submit annual reports to auditors. Once approved‚ the Minister of Finance must table the financial statements in parliament. It is unlikely that Myeni will be able to avoid the sanction.

She could be jailed

Former South African Airways chairperson Dudu Myeni could be jaile-ed after he is found to be a delinquent director. He has repeatedly avoided appearing in court‚ citing lack of financial means as the reason. However‚ the High Court in Pretoria has dismissed his application to appeal the ruling. In the meantime‚ his supporters are attempting to destroy his reputation. ANC Women's League and SAA have come out in support of Myeni‚ who was declared a delinquent director by the North Gauteng High Court after yet another no. The court's ruling makes Myeni a delinquent director for life and subjects her to the provisions of the Companies Act. If she fails to appear on 14 June 2022‚ an arrest warrant will be issued. Myeni's trial has been delayed numerous times. She claimed she had no money to travel to court and did not have a good lawyer to represent her case. Myeni lives in Richards Bay and has served on several boards of companies‚ earning hundreds of thousands of rands in fees for her services. In one case‚ she was a director at SAA‚ earning more than R4.3 million in directors' fees. Another time‚ she served on the Mhlathuze Water Board‚ where she received R3.5 million as director's fees. If Myeni's case is successful‚ the Court could grant her reinstatement. But this will not happen unless the delinquent director proves that she has made satisfactory progress towards rehabilitation and would be able to serve successfully in a company in the future. ANCWL has received several attacks on Myeni‚ and supports her appeal‚ while encouraging her to continue to work for a successful career in SAA. The case was delayed because Myeni failed to attend her hearing in May 2021. The Zondo Commission lawyers complained about her repeated attempts to contact her. As a result‚ Judge Zondo ordered a criminal complaint against Myeni. Myeni may be jailed if she continues to evade the court's order. Outa will approach the Jacob Zuma Foundation and Centlec to ensure Myeni steps down from his directorships. Outa chairperson Grant Back is now also involved in the case. While Myeni is unlikely to face jail time in the near future‚ she is facing the possibility of losing her job. The North Gauteng High Court is considering the case is likely to continue. Outa's original application to declare Myeni a delinquent director was approved in 2017. After the first refusal‚ Myeni was re-elected as board chairperson. He served as chairman until November 2017.

She has failed to make herself available to give evidence

A commission investigating the sexual assault of former South African president Jacob Zuma has found that dudu Myeni has failed to give evidence. Despite the summons‚ Myeni has not appeared in court. Her legal representative has sought a postponement of the hearing because she did not have the documents she needed to give evidence. She also changed legal teams and did not know that the commission was tracking her down. In addition‚ Myeni has not responded to requests for documents. The state capture inquiry is the third inquiry into the allegations against Zuma and the Zuma Foundation. Myeni attended the state capture inquiry and failed to give evidence in court. She asked to testify in her native isiZulu‚ but deputy chief justice Raymond Zondo refused. He argued that it was unfair for Dudu Myeni to speak in her own language. He also said that she could have provided translators for her witnesses. The commission has previously pursued criminal action against Myeni. In the first instance‚ she revealed the identity of an anonymous witness. The commission chair subsequently called for a police investigation into the matter. The next stage is to determine if the privilege against self-incrimination was abused. If not‚ Myeni must appear in court on May 25. While the commission will decide on the privilege‚ the DA wants to take the case to court. The state capture commission's Deputy Chief Justice Raymond Zondo instructed the secretary to lay criminal charges against Myeni. Myeni's lawyer said that if she approached Zuma‚ she would have abdicated her responsibility and undermined his position. But‚ Myeni argued that there was no shortcut to corporate governance. And that he was right to ask for time. Despite her stance‚ Myeni has failed to appear in court and avoid being convicted of the charges. According to the commission‚ she misled Malusi Gigaba‚ she misrepresented the number of Airbuses the company was supposed to purchase. In turn‚ she caused delays in the delivery of the planes‚ as well as the loss of R800 million in pre-delivery payments. The Commission of Inquiry into Allegations of State Capture has ordered Myeni to give evidence at the hearing. However‚ Myeni failed to show up to the hearing on Tuesday. This is a result of the lawyer's representations‚ which remained unanswered. Dudu Myeni has failed to make herself available to give evidence‚ which has delayed her case. The commission was unable to rely on Myeni's testimony‚ despite the fact that she acknowledged her signature on a sworn affidavit but denied acknowledging her signature on a deposit slip. The Jacob G Zuma Foundation is Myeni's employer. Her lawyer‚ Nhlanhla Nene‚ said Zuma was angry with Myeni and refused to approve her board without her participation.