Judgment: MEC for the Department of Community Safety & Transport Management, North West vs Thomas Hendrick Samons N.O. & Others
22 November 2024
Dear Member
In this matter the Court ordered the removal of the BRP for three state-owned entities: North-West Transport Investment (NTI), North-West Star (NWS), and Atteridgeville Bus Service (ABS).
The reasons were as follows:
- Displayed incompetence and failed to act with due care.
- Breached statutory duties under the Companies Act and Public Finance Management Act (PFMA).
- Delayed publishing the required business rescue plans.
- Failed to prioritize employee salaries as required by law.
- Did not prepare or submit financial statements for six years.
- Acted without necessary government approvals in post-commencement finance agreements.
- Breached reporting obligations to provincial authorities.
The Court found that the above actions and inactions prejudiced affected parties, particularly employees, and compromised the financial reporting obligations of the MEC and the government.
Kindly sent to us by Adv. Jaco Vorster SC.
Take care,
René Bekker
Chief Operating Officer