SABC after Hlaudi for millions — but he insists broadcaster 'owes' him R22m

The SABC is seeking payment of R850,000 from former group chief operating officer Hlaudi Motsoeneng for legal fees incurred by the public broadcaster on his behalf in numerous legal cases.

Over and above that, the SABC is still pursuing Motsoeneng for R11m paid to him as part of a R30m "success fee" for negotiating a controversial R500m deal with pay-TV operator MultiChoice, which effectively handed it access to the entire SABC archive.

It later came to light that as a condition of that deal, the SABC agreed to support MultiChoice's position for set-top boxes - decoders that will enable migration to a digital broadcast signal - to remain encryption-free.

Working with the Special Investigating Unit (SIU) - which was mandated to investigate irregular contracts at the public broadcaster - the SABC also seeks to recover R10.7m in damages from Motsoeneng related to irregular appointments made on his watch, and the payment of bonuses.

Another matter before the Special Tribunal relates to the authorisation of payments of R50,000 each to music legends. The one-off payments were made to 53 musicians in 2016 for the role they played in the liberation struggle. These payments have been declared irregular.

In total, Motsoeneng is being pursued for more than R24m.

If the public broadcaster has its way, he could lose his pension payout should he fail to repay the monies. The broadcaster is also considering attaching some of his properties, with work already under way to establish how many he has and their value.

But Motsoeneng is fighting back. He is contesting the public broadcaster's claim of legal fees, saying that when the legal costs were incurred he was an employee and was covered by the SABC's legal insurance. He claims the SABC owes him R22m - part of the success fee for the MultiChoice deal.

The SABC and the SIU have a number of pending court cases against Motsoeneng. The R850,000 in legal fees was paid to Majavu Inc, a firm that represented the former SABC executive in a number of cases.

They owe me R22m, I want it. I raised money for the SABC; I raised R800m out of the MultiChoice deal. The SABC survives because of me

This includes legal challenges brought by, among others, the DA to declare Motsoeneng's employment illegal after the public protector released a report in 2013 that found he had been appointed irregularly as COO when he didn't possess a matric certificate.

A warrant of execution was issued after the SABC obtained a high court order confirming that Motsoeneng was liable for the R850,000 paid to Majavu. He tried to appeal against the order but lost in the Supreme Court of Appeal. On July 28, Werksmans Attorneys, on behalf of the SABC, wrote to Machaba Attorneys - who represent Motsoeneng - requiring payment of the outstanding R850,000 plus R112,000 in late payment interest.

Machaba responded on August 11, saying it had been instructed by its client to propose a monthly payment of R20,000 starting from September 1, as he is unable to settle the full amount. "Please note our client is hopeful that your client shall be amenable to his proposal and as such request that your offices avoid the execution procedures ."

The Sunday Times understands that the SABC rejected this proposal.

Contacted for comment on Friday, Motsoeneng acknowledged that he had made an offer of monthly instalments of R20,000. He was adamant, however, that it is wrong for the public broadcaster to seek the money from him when serving board members and executives are insured for legal claims made against them while in office.

"I was the director and I was covered by insurance on those matters. There is a fight between myself and the insurance [company] to pay all my legal fees during the time I was at the SABC," he said.

Motsoeneng insisted that he was entitled to the success fee he received for negotiating the MultiChoice deal, saying the public broadcaster had benefited from the deal.

"They owe me R22m, I want it. I raised money for the SABC; I raised R800m out of the MultiChoice deal. The SABC survives because of me."

He said he would fight any attempts to attach his assets or his pension payout.

Gugu Ntuli, group executive for corporate affairs and marketing at the SABC, said the broadcaster is in discussions with Motsoeneng's attorneys but "does not litigate through the media, and thus has no further comment".