Amplats and MTN Face Governance Questions as Thabi Leoka Resigns Amid Qualification Scandal

The credibility of corporate South Africa's governance standards is once again under public scrutiny as high-profile economist Thabi Leoka departs from the boards of Anglo American Platinum (Amplats) and MTN SA. This exit follows reports questioning the authenticity of her academic qualifications. The unfolding scenario brings to light significant gaps in the vetting procedures of top-tier corporate entities, raising concerns over due diligence within South Africa's business elite.

Anglo American Platinum disclosed on Monday that Leoka had stepped down from her position as a non-executive director to prioritize her health and to proactively address ongoing allegations regarding her academic credentials. However, Amplats abstained from addressing their oversight in not discerning discrepancies in Leoka's purported qualifications prior to her board appointment.

Simultaneously, Leoka has concluded her tenure on the board of telecommunications giant MTN SA. Echoing Amplats, MTN noted her resignation linked to health issues and the need to manage the ensuing controversy over her qualifications. This dual resignation has added fuel to the discourse about corporate responsibility and ethical leadership in South Africa.

Investigations initiated by Business Day revealed that Leoka's claim to hold a PhD in economics from the prestigious London School of Economics (LSE) was unverified, with the institution confirming that she was not granted a PhD. This revelation has cast doubts on the diligence of both Amplats and MTN in confirming the veracity of board members' qualifications, as neither company had so far addressed queries on their verification processes.

In sharp contrast, the private healthcare group Netcare acknowledged their oversight concerning the validation of Leoka's qualifications before her non-executive director appointment in 2021. Charles Vikisi, Netcare's general counsel and group secretary, admitted that the company had ignored aspects of a verification report that contradicted Leoka's declared academic achievements. Netcare’s candor regarding their lapse has underscored the expectations of thorough and transparent checks by corporations.

The Leoka episode is a stern reminder of the repercussions of inadequate governance practices, following closely on the heels of other corporate controversies, notably the Steinhoff debacle and the financial turmoil faced by Tongaat Hulett. The erosion of trust and the dent in corporate South Africa's image demands a renewed commitment to rigorous governance and ethical leadership, pivotal in reassuring stakeholders and maintaining South Africa's corporate integrity on the global stage.

The overseeing entities, Amplats and MTN, have now been brought under the scanner, facing critical questions about their board appointment mechanisms. While the damage to their reputations is yet to be fully quantified, it is evident that this incident could serve as a catalyst for a readjustment of corporate governance across all sectors in South Africa.