Photo by: Duane Daws
The South African Post Office (Sapo) on Monday became the latest government-owned entity to become the subject of a criminal investigation.
The Democratic Alliance’s Cameron Mackenzie said he was “laying criminal charges against…previous directors of Sapo for‚ among other crimes‚ their failure to exercise their fiduciary duties in terms of several sections of the Companies Act (2008)”.
Mackenzie said the directors “continued leading an entity that was trading recklessly‚ technically insolvent‚ problematic as a going concern‚ and in need of business rescue” despite a warning from independent auditors “projecting a group loss of R1.3-billion for the following year”.
He quoted the Companies Act which “states a director is liable for any loss‚ damages or costs sustained by the company as a direct or indirect consequence of the director having ‘persisted and went along with any action or decision despite knowing that it amounts to reckless trading’ ”.
Among those named as being charged by the DA are “former board chairperson Dr Hlamalani Manzini‚ CEO and executive director Christopher Hlekane‚ CFO and executive director Khumo Mzozoyana‚ as well as nine other nonexecutive directors”.
“Filing these criminal charges sends a clear message to the new Sapo doard as well as to other directors of state-owned companies that it is not business as usual‚ that they are not secure in the comfort of their boardrooms‚ and that there are serious criminal consequences for their actions – or inaction‚” said Mackenzie.
“The fact that state-owned companies are able to continually solicit taxpayer bailouts disguised as ‘guarantees’ based on numerous turnaround plans that never materialise‚ renders them immune to bankruptcy and in the processes‚ subsidises gross inefficiency‚ a lack of innovation and uncompetitive business models.
“Even more concerning is that subsidies are at the expense of the already burdened tax payer.