Latest news with #R4.4m
IOL News
7 days ago
- Business
- IOL News
Brian Molefe's legal troubles deepen as AIG sues for R4. 4m over defence costs
Insurance company AIG South Africa is gunning for former Eskom chief executive Brian Molefe in a multimillion-rand lawsuit. Image: Simphiwe Mbokazi / Independent Newspapers uMkhonto weSizwe Party MP and former Eskom chief executive Brian Molefe is facing more legal woes after an insurance company slapped the erstwhile Transnet boss with a R4.4 million lawsuit. AIG South Africa signed a written management liability insurance policy with Eskom in April 2017. In terms of the policy, AIG agreed to provide liability cover to the power utility's directors, officers, and employees, including those in its subsidiaries. Each insured person was insured independently and separately for their respective interests, according to the policy. Molefe, in his capacity as chief executive of Eskom, qualified as an insured person under the policy and was eligible, subject to its terms and conditions, to indemnification during his time at the state-owned entity. The policy made provision that AIG will advance cover for liability insurance, being the obligation to pay to or on behalf of an insured person any loss incurred by the insured person. In Molefe's case, AIG agreed to pay for his defence costs on condition that if it was found by a court that he had gained a profit or an advantage to which he was not legally entitled or that there was a commission of a dishonesty or deliberate fraudulent act, then he would have to repay the costs that had been disbursed or that would be disbursed to him or on his behalf. The insurance company disbursed the sum of approximately R4,398,849 (about R4.4m) for his defence costs. However, various judgments were delivered against Molefe by the Supreme Court of Appeal (SCA) and the Constitutional Court, which determined that his conduct was unlawful. The matter relates to Molefe unsuccessfully applying for leave to appeal to both the SCA and the apex court, an earlier Gauteng High Court, Pretoria, judgment finding that his reinstatement as Eskom chief executive was at variance with the principle of legality and reviewing and setting aside the board's decision to accept his early retirement proposal in November 2016. The high court also reviewed and set aside the decision by then Public Enterprises minister Lynne Brown to appoint and reinstate Molefe to the position of Eskom chief executive and declared that any payment or sum of money received by Molefe under any purported pension agreement between him and Eskom is invalid and ordered him to repay such amounts within 10 days. AIG informed Molefe of its intention to institute legal proceedings and claim the provision of his defence costs, and that he accepted the benefits conferred on him by the policy and agreed to be bound by its terms. The company told Molefe in October 2017 that it would advance defence costs to him on a without prejudice basis, and, on the basis that should it eventuate in due course that he was not entitled to an indemnity under the policy, he would refund such costs in full and on demand. Molefe maintained that he did not agree to the provisions of the policy and is not bound by it, as well as that he did not agree to repay the defence costs He also insisted that an arbitration clause in the policy compelled AIG to refer disputes on the recovery of the defence costs to arbitration and raised a special plea in the pending action by the company that its case be dismissed or stayed pending resolution of the arbitration. On August 1, Judge Allyson Crutchfield ordered that the disputes in respect of the claim instituted by AIG shall not be referred to arbitration. The judge found that Molefe's stance that he is not bound by the policy while simultaneously relying upon and claiming the enforcement of the arbitration clause in respect of AIG's claims was untenable and not sustainable in law.
TimesLIVE
05-08-2025
- Business
- TimesLIVE
Amcor Road in Centurion reopens after major sinkhole repairs
After a three-year closure, Amcor Road in Centurion has finally reopened after repairs. The road was closed in April 2022 due to a large sinkhole caused by a severe underground water leak that destabilised the entire width of Amcor Road. At the time, it was estimated to be about 12 metres long, five metres wide and 18 metres deep. The road was closed immediately, and the leaking pipe was diverted to prevent further damage. City of Tshwane MMC for corporate and shared services Kholofelo Morodi said the road was reopened after extensive repair work was completed. 'This moment marks not only the restoration of a critical road but also a reaffirmation of the city's commitment to rebuilding infrastructure and restoring public trust,' she said. The closure disrupted daily life for many residents, with some even forced to relocate their gates and driveways. Geological investigations were finalised in August 2023 and repairs officially began in May 2025. Upon commencement, it was discovered that the sinkhole had expanded significantly over three years, surpassing initial size and cost estimates. Morodi said the total cost of repairs is projected at about R4.4m, pending final certification. The city took a methodical, safety-first approach to the repairs. Imported rock boulders were used to stabilise the sinkhole up to two metres below ground level, followed by the application of high-slump concrete to fill cavities and reinforce structural integrity. 'Boreholes were grouted to prevent future subsidence, and the site was backfilled with compacted soil in line with engineering standards. Damaged water and sewer lines were replaced, and the road was reconstructed using durable materials, including a medium asphalt surfacing,' she said. Centurion resident Allen Truder said the road is a shortcut to the mall at Doringkloof and the NG Kerk. 'It used to take more time to get there, but now that it's open, it will take less than five minutes,' said Truder.
TimesLIVE
11-07-2025
- TimesLIVE
Former administrators flagged for 'siphoning' Lotto's R4.4m from NGO
Three former administrators of a Limpopo NGO and a person only known as 'Dineo' have been implicated in allegedly siphoning R4.4m from the organisation through unauthorised withdrawals. This was disclosed in a forensic report compiled by Black Hawk Private and Forensic Investigation and Risk Solutions into the alleged abuse of funds at Hlahlolanang Health in Sekhukhune. According to the report, two of the former administrators allegedly acted as sole signatories of the NGO's bank accounts and used their positions to allegedly facilitate payments between themselves and the then chairperson. There is clear evidence of deliberate financial misconduct, manipulation of signatory powers, systematic concealment of income and expenditure Papi Jonathan Lebese, forensic team investigator The funds were donated by the National Lottery Commission (NLC), Marula Platinum Mine and department of social development and were allegedly diverted into the four people's personal accounts between April 2021 and March 2023 through irregular withdrawals, misrepresentation of signatories and staged benefit-sharing schemes. According to the report, seven amounts totalling R4.4m were siphoned between April 2021 and March 2023, with the last amount withdrawn amounting to R3.3m. It said a R101,345 donation landed in the NGO's account on April 20 2021, and shortly thereafter R62,000 was split among the four individuals: R15,000 each to two of them and R16,000 each to the other two. A similar pattern followed after R316,740 was deposited in September 2021, with each receiving between R50,000 and R70,000 in transfers with no legitimate justification recorded. The investigation further found that in March 2022, after the NGO received R633,444, R450,000 was again allocated to three of them. The records indicate there was no authorisation from the board, and no expenditure reports or procurement documentation was filed. The forensic team, led by investigator Papi Jonathan Lebese, found that signatory access to the NGO's bank accounts was altered without the board's knowledge. These unauthorised changes allegedly enabled two of the former administrators to approve transactions without oversight. 'There is clear evidence of deliberate financial misconduct, manipulation of signatory powers, systematic concealment of income and expenditure. These actions reflect gross violations of the law and the NGO's constitution, warranting immediate criminal, civil, and disciplinary action,' said Lebese. The report recommends that the matter be referred to the Hawks, the Special Investigating Unit (SIU) and the National Prosecuting Authority for criminal investigation. We're no longer receiving funding or support, and beneficiaries have been left in the dark. Emily Shilakoe, part of the NGO 'We have identified significant financial irregularities involving the misappropriation of donor funds and unauthorised changes to bank signatories. Given the complexity and scale of the suspected fraud, we recommend the involvement of the SIU to conduct a comprehensive forensic audit and assist with recovery processed,' Lebese said in the report. Investigators also flagged the need to trace the funds using banking subpoenas and to recover the misappropriated money through civil litigation. Meanwhile, the charges brought forward for the disciplinary hearing and internal resolution are: gross dishonesty for misappropriating NGO funds; fraud through false documentation and personal enrichment; breach of trust by bypassing board processes; insubordination; negligence in handling donor money; unauthorised access to organisational resources such as bank accounts; and failure to disclose conflicts of interest while occupying managerial roles. Emily Shilakoe, who's part of the NGO, said programmes have collapsed allegedly because of the mismanagement. 'The worst part is the impact on the ground,' she said. 'Hlahlolanang runs crucial HIV/Aids programmes, including voluntary counselling and testing, with trained counsellors who used to receive stipends from Lotto and the department of health. But once the funds started being misused, those payments stopped, and the department and the commission refused to send more money because there were no progress reports coming in. So the programmes collapsed. 'We're no longer receiving funding or support, and beneficiaries have been left in the dark.'
![Community solidarity in full display at Jona Vaughan Home [Pics]](/_next/image?url=https%3A%2F%2Fwww.citizen.co.za%2Fsouth-coast-sun%2Fwp-content%2Fuploads%2Fsites%2F39%2F2025%2F06%2Fjona.jpg&w=3840&q=100)
![Community solidarity in full display at Jona Vaughan Home [Pics]](/_next/image?url=https%3A%2F%2Fmedia.citizen.co.za%2Fassets%2Fimg%2Fcitizen-icon.png&w=48&q=75){kind=icon}
The Citizen
19-06-2025
- General
- The Citizen
Community solidarity in full display at Jona Vaughan Home [Pics]
THE Jona Vaughan Home for the Handicapped in Amanzimtoti has enjoyed a facelift and received help for its water and electricity woes after the community took time on June 7 to sweep, mop, mow, and repair the home. Charmaine Maas of the Jona Vaughan Parents Association said the community, organisations and companies pledged their time, energy and resources to brighten up the home. Also read: Jona Vaughan's closure rumours denied despite hardships 'We put out an appeal to the community through our Friends of Jona Vaughan Facebook page. We had volunteers come in, we had churches and a rehabilitation centre approach us to assist, as well as several companies who have brought in generators to keep us up and running and Jojo tanks to keep our residents hydrated and hygienic. Everyone that attended has given up their time to do electrical work, maintenance, plumbing, cleaning and so on. Today was basically a voluntary work party to get everything cleaned out and tidy,' said Maas. The gutters were cleaned, the grass was cut, and debris was removed. Each of the cottages and bathrooms was high-pressure washed and sterilised while broken wheelchairs and walkers were repaired, laundry was done, and chemical supplies were restocked. Youth in attendance entertained the residents while they waited to get back to their rooms. 'We did our best to bring the home back to its former glory, and to make things more comfortable and homey for the residents,' she added. René Matthews, of the Kingsburgh Lions Club, along with her team, were among the many who put in the time and effort at the home. She painted a picture of the way the home appeared, 'The home looked abandoned and it was very sad to see the place looking chaotic all over, inside and out. There did not appear to be any maintenance done for a long time. In the linen room, you could not see the floor as bin bags and boxes were piled up, without any systems in place to maintain order. It begs the question what staff members, some of whom worked there for over a decade, are doing that the place looks so dirty and neglected.' On June 3, Maas said that the municipality cut the electricity supply as the electricity bill is in deficit of R4.4m and Durban and Coastal Mental Health, the body under which the Jona Vaughan Home operates, do not have the funds to pay the bill. 'They came to cut the water on June 7, but we managed to persuade them to give us some grace, but again, there is no money to pay the water bill. The community have stepped in to give us some generators so that we can have power for around four hours a day. This means that we can't keep any food on site and the medication that needs to be stored in the cold rooms and in the fridges can't be stored appropriately. People from around the neighbourhood are assisting us in storing the food. So that is a health hazard for the residents. Another hazard comes in the form of lacking electricity. With no lights, the residents can fall and get injured. We can't bathe them with hot water as well, which is worrisome for their hygiene.' How you can help: With the home in desperate need of funding, and the subsidies Durban and Coastal Mental Health receives from government not being enough to sustain the home, there is a shortfall every month. You can donate to the organisation's back-a-buddy with the following link: Alternatively, donate to: Jona Vaughan Parents Association Bank Name: Nedbank Branch Code: 130826 Account number: 1304130959 Consider donating the following food items: Minced meat (x2 5kg packs) Jungle Oats (8kg bag) Bread (residents need 22 loaves a day) Macaroni (14kg) Dhall (10kg) Lentils (10kg) Soya mince (x10 400g packs without chillies) Smaller quantities are more than welcomed as well, as any contribution will make a world of difference in the lives of the residents. For more South Coast Sun news, follow us on Facebook, Twitter and Instagram. You can also check out our videos on our YouTube channel or follow us on TikTok. Subscribe to our free weekly newsletter and get news delivered straight to your inbox. Do you have more information pertaining to this story? Feel free to let us know by commenting on our Facebook page or you can contact our newsroom on 031 903 2341 and speak to a journalist. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
