Tongaat Hulett is seeking a thumping R450-million in civil claims against former executives after the accounting fraud revealed by the company in 2019, the company announced on Tuesday. This signals a growing claw-back trend against errant directors.
The company is also seeking an order to declare them as delinquent directors. (A 10-year sentence)
In separate proceedings, a subsidiary of the group, Tongaat Hulett Developments, launched a civil case in the same High Court in February 2020 against former MD, Michael Deighton.
In total, Tongaat is claiming about R450-million against these past directors and executives, with full trials anticipated to start in early 2023.
Various criminal cases are also being pursued in South Africa and Zimbabwe.
Tongaat company secretary Johann van Rooyen states that Tongaat is determined to pursue this matter and do everything within its power to secure a fair outcome for shareholders.
“Tongaat is withholding Staude and Deighton’s pensions until the finalisation of the litigation initiated against them. Munro and Slabbert had, unfortunately, already left the business and withdrawn their pensions by the time the action was instituted.
“The implementation of sound corporate governance principles is at the very heart of the progress made in our business over the past two years. Our board, management structures, internal audit, risk and compliance processes, have been considerably bolstered,” Van Rooyen added.
Source: Engineering News | Edited by Creamer Media Reporter