The Public Enterprises Department is aiming to have the remaining evidence of 35 cases of directors of boards of state-owned entities submitted this month to the Companies and Intellectual Property Commission (CIPC) to be declared delinquent.
This emerged on Thursday when the department briefed Public Enterprises and Communication on progress made in the implementation of the Zondo Commission recommendations.
Public Enterprises Minister Pravin Gordhan said his department had requested each of the SOEs to put in place a plan of action to give effect to the commission’s recommendations and findings for his department to manage the processes.
“The entities that account to this ministry and department are among a few that were targets of state capture with others within the state,” Gordhan said.
Deputy director-general Melanchton Makobe said the department has been working with law enforcement agencies, SOEs and other organs of state to pursue delinquency proceedings against former directors of SOEs implicated in state capture.
It was also ensuring that civil and criminal proceedings were referred to relevant authorities for investigation, to ensure individuals that failed to exercise their fiduciary responsibilities were disciplined by their professional bodies and that individuals implicated in state capture were prevented from accessing employment opportunities across the three spheres of government.
Makobe said the department was leading the process of approaching courts to declare certain directors delinquent.
“We are working with law enforcement agencies to pursue 35 cases of delinquency proceedings against 94 former directors of SOEs,” he said.
There were 13 cases at Eskom, 25 each at Transnet and SAA, 10 at Denel and 22 at Alexkor.
In the case of Eskom, the department led the launch of delinquency proceedings with the CIPC against former directors in April this year.
Makobe also said 56 evidence submissions were prepared and referred to the CIPC in November to assist the CIPC to initiate complaints against 60 former directors of Transnet, Denel and Alexkor.
“The Department of Public Enterprises is on track to refer the remaining 35 evidence submissions to the CIPC by 31 December 2023.”
Makobe added that the department has referred six cases relating to former board members of SOEs, accounting and law firms implicated in state capture to their respective professional bodies.
In SAA, there were four cases, and in Denel and Transnet, one each. In the case of SAA, a complaint was laid with the South African Institute of Chartered Accounts, resulting in one former director being fined R6.1 million and barred from practising as a chartered accountant.
A complaint laid with the Independent Regulatory Board of Auditors resulted in a director of an audit firm being fined R5.1m and barred from practising as an auditor for an incorrect audit opinion in respect of Eskom’s 2016 audit.
“The department is reviewing profiles (CVs) of the implicated former directors to ensure that all those who belong to professional bodies are identified.
“This is to ensure that the former directors are referred to their relevant professional body for discipline, and that evidence from successful referrals is used to support delinquency proceedings,” Makobe added.
“To date the database has been developed and it is currently being rolled out.”
Cape Times