Solidarity threatens court action if SOEs don't act against corrupt execs

On Wednesday, the union announced it had launched a process in terms of the Companies Act to investigate former Denel board members with a view to possible prosecution.

Picture: @DenelSOC/Twitter

JOHANNESBURG - Trade union Solidarity has threatened legal action against state-owned entities who fail to act against former executives who were involved in fraud and mismanagement.

On Wednesday, the union announced it had launched a process in terms of the Companies Act to investigate former Denel board members with a view to possible prosecution.

The cash-strapped arms manufacturer had recently been struggling to pay its employees their full salaries.

Whether at Denel, SAA, Eskom and many other state-owned entities, several high-powered executives were fingered as having enabled the rampant fraud and corruption, leaving the institutions in absolute tatters.

Several investigations to hold the former executives to account and recoup the money they have mismanaged have started but not many have been held to account.

Solidarity’s Anton van der Bijl said they were prepared to go to court to force SOEs to act against former executives involved in wrongdoing.

"It's time for the taxpayer to say enough is enough and we stand up for our rights in a legitimate way."

Denel responded yesterday, saying it would soon take legal action against its former executives to recover the money.

Other SOEs have also initiated investigations but many were asking when action would be taken.