Constitutional Court Rules Against Hlaudi Motsoeneng in R11.5 Million SABC Fee Case

In a recent ruling with far-reaching implications for public accountability, the Constitutional Court of South Africa has dismissed an appeal by former South African Broadcasting Corporation (SABC) chief operating officer Hlaudi Motsoeneng. This decision leaves Motsoeneng on the hook to repay a contentious "success fee" of R 11.5 million which a lower court adjudged as unlawful.

The saga traces back to a decision in 2016 when the then SABC board approved a payment of R 11.5 million to Motsoeneng as a reward for his role in brokering a deal with MultiChoice. However, the legitimacy of this payment was brought under scrutiny and eventually challenged in court.

In January 2023, the Supreme Court of Appeal upheld a Gauteng Local Division High Court ruling, deciding against Motsoeneng's application and ordering him to bear the costs of the legal proceedings. The High Court originally found that the payment made to Motsoeneng was not only unlawful but also invalid, mandating that he is to repay the full amount plus interest levied over the years. As a result, Motsoeneng's financial liabilities have swelled to an estimated R 18 million.

The Constitutional Court, having the final say in the matter, has chosen not to entertain Motsoeneng's bid to overturn the previous judgments. This effectively sets the stage for the Special Investigating Unit (SIU) to reclaim the outstanding amount from Motsoeneng. The SIU has already extracted a partial repayment by attaching R 6,476,515.21 from Motsoeneng's pension benefits, demonstrating the unit's commitment to recovering public funds improperly expended.

The SIU has expressed satisfaction with the Constitutional Court's decision marked on the 18th of September 2024, viewing it as a vindication of the rule of law and a deterrent against the misuse of public office for personal gain. With the dismissal of Motsoeneng's appeal, a clear legal precedent is set that reinforces the principles of responsible governance and serves as a warning to other public servants against similar infractions.

Justice has been served in what can be considered a landmark case underscoring the consequences of unlawful actions by high-ranking officials within public entities. The ruling not only reflects the courts' commitment to upholding legality in public administration but also solidifies the watchdog role played by bodies such as the SIU in safeguarding the public interest.

The significance of this ruling cannot be overstated, as it sends a loud and clear message to public officials that the days of unchecked financial irregularities are numbered. Motsoeneng's case is emblematic of the larger struggle against graft within public institutions, and the decisive action taken sets a precedent that is likely to influence governance practices well into the future.