Manyatshe not done yet

Johannesburg, 09 May 2008

MTN SA's ex-MD Maanda Manyatshe is preparing to provide evidence which will show the SA Post Office (SAPO) knew he was not guilty of instituting tender irregularities.

Manyatshe is suing the state-owned entity for R260 million in damages. This follows a September 2006 article in the Mail & Guardian in which then SAPO CEO Khutso Mampeule accused Manyatshe of committing fraud while still CEO of the company.

This article led to Manyatshe's early exit from MTN. At the time, the cellular operator's group president and CEO Phuthuma Nhelko said: "I support and respect Maanda's decision to act in the interests of the company - he joined MTN during a very challenging period and his management of the operation has been exemplary."

Now Manyatshe's consultant in the matter, Bart Henderson, says he has documentation in his possession that proves Manyatshe should never have been forced to resign from the cellular operator.

Fighting back

Manyatshe's decision to place pertinent documents in the public sphere follows a High Court ruling on Tuesday which said that, while he had a "basis in law" for the claim, he had failed to provide a strong enough case or "cause of action" in the summons.

SAPO had requested the hearing to address various legal technicalities around the depth of the cause of action supplied by Manyatshe's representatives. For the purposes of the objection, SAPO accepted the correctness of Manyatshe's claims, but disputed the legal conclusions.

In this matter, SAPO won the court's favour.

In his decision, judge Brian Southwood stated: "...a high degree of precision is required so that the defendant knows exactly what the case is that he has to meet."

The judge also ruled that Maanda Manyatshe must show SAPO had prior knowledge and knew the allegations against him were false.

Manyatshe must show SAPO associated itself with the defamatory statements in the media and that he would not have suffered damages had SAPO offered a rebuttal to the allegations vindicating Manyatshe.

Presenting evidence

Henderson says the ex-executive has now decided to release those documents that Henderson believes will prove the state-owned entity "knowingly and intentionally committed fraud".

"We have copies of board meeting minutes, interviews and letters which prove that SAPO knew Manyatshe was not involved in any fraud. Nevertheless, the company allowed its CEO to make slanderous statements to the media and refused to make amends after the publishing of the same. Essentially, SAPO sacrificed Manyatshe to a lie and one of SA's best black executives sits on the sidelines of business waiting for his name to be cleared," he alleges.

Manyatshe was at one time linked to the top spot at the State IT Agency. However, it is believed public service and administration minister Geraldine Fraser-Moleketi nixed his appointment due to the legal action against SAPO.

Henderson suggests the court's decision that Manyatshe must prove SAPO "deliberately misrepresented their position by omission for the purpose of deception causing actual and potential prejudice to Manyatshe" is tantamount to proving the board committed fraud.

In an open letter to SAPO, Henderson says Manyatshe's case will also see the downfall of current SAPO CEO Motshoanetsi Lefoka.

"It is impossible to escape the fact that the board of SAPO wilfully and intentionally destroyed a man's reputation by omission. [Lefoka] is and was privy to the information I am presenting... This matter will ultimately lead to her and this board's downfall just as it did [former SAPO CEO Khutso] Mampeule's and the previous board," he threatens in the letter.

Moreover, he tells SAPO that Manyatshe's original damages claim has risen alongside the soaring of MTN's share price.

"The value of Manyatshe's claim has grown. Damages were calculated from R74.49 per share as at 15 November 2006. The current share price is R158.01. You can, should Maanda Manyatshe through his actuaries re-calculate his losses, double his claim," he says.

Meanwhile, SAPO has called the High Court ruling "significant".

Commenting on the outcome of the case, Vuyo Mahlathi, SAPO's chairperson, said: "We welcome the court's decision and believe this assists in concluding this matter. This outcome further helps strengthen our focus in transforming the organisation towards growth and sustainability."