The former acting chief master and chief director at the Master's Office has rubbished Special Investigating Unit (SIU) findings implicating her in misconduct, including the liquidation of Bosasa, claiming the unit was “weaponised to target certain individuals”.
Theresia Bezuidenhout maintains she is innocent.
The SIU's probe into the maladministration chaos at the Master's Office unearthed a string of alleged wrongdoings including misconduct, contravention of various laws and gross dereliction of duties. Its report referred 14 officials to the department of justice for disciplinary action.
The report, scrutinised by TimesLIVE Premium, identified alleged wrongdoers, ranging from the chief director who was also the acting chief master, the master, deputy masters, and assistant masters to the help desk operator, administration clerks and an estate controller.
Individuals who stood out in the 134-page report, were Bezuidenhout and Reuben Maphaha, the deputy master — both alleged to have committed several incidents of misconduct.
It found Bezuidenhout, as acting chief master, reappointed unqualified liquidators in February 2019 to dissolve African Global Operations, a subsidiary company owned by African Global Holdings, formerly known as Bosasa. The provisionally appointed liquidator did not fall under the policy of previously disadvantaged individuals (PDI), the report said.
Bezuidenhout was found to have assembled a team of masters from different offices to appoint provisional liquidators, despite them not having jurisdiction to do so. In addition, such an appointment was outside her functions as it was the master who appointed provisional liquidators and not the chief master.
“Thus, the evidence obtained indicates that Ms Bezuidenhout acted in a high-ended manner, thus abusing her position and office in directing and imposing [the liquidator’s] appointment as sole liquidator and provisional co-liquidator on the respective masters,” read the report.
It recommended those masters who failed to recuse themselves from appointing such liquidators also be subjected to a disciplinary inquiry.
Bezuidenhout denies allegations on Bosasa liquidation
Speaking to TimesLIVE Premium, Bezuidenhout said she had not seen the full report despite numerous requests. She said she was cleared of allegations of wrongdoing relating to the appointment of liquidators for Bosasa.
“I have never appointed a liquidator and second the liquidators in the Bosasa matter were not disqualified, as the SIU was led to believe,” she said.
“I am aware of certain allegations made in the report against me, which I have always disputed. I had a disciplinary hearing and I was acquitted on all charges relating to Bosasa. Unfortunately, this has never been reported or acknowledged in the media by the department,” she said.
On findings that she directed other masters outside their jurisdiction to provisionally appoint liquidators for Bosasa, she referred to a November 2019 Supreme Court of Appeal (SCA) judgment which found that the Master's Office in Pretoria held the main seat in the province and had jurisdiction to mandate other masters in Johannesburg to provisionally appoint liquidators.
While disciplinary processes are ongoing with the department, the SIU findings have ensured that cases of a criminal nature are appropriately escalated for further legal action by the prosecuting authority
— Justice department spokesperson Kgalalelo Masibi
“The SCA judgment clearly indicated that I, at all times, acted correctly and within the ambit of the law. The court found that the liquidators were appointed correctly. The court also found that the Pretoria master has concurrent with Johannesburg and the issue of jurisdiction was comprehensively dealt with in the judgment,” she said.
Other findings by the SIU were that Bezuidenhout had failed to institute disciplinary proceedings against the head of the Mbombela master’s office, despite a recommendation in a report issued by the department of justice audit unit.
Bezuidenhout was found to have instead issued a verbal warning.
Bezuidenhout criticised the SIU for how they handled the investigation into the Master’s Office, for disregarding the SCA judgment and not giving her a chance to present her side.
“It is regrettable as it appears that the SIU has been weaponised to target certain individuals. It further appears and is ironic that the SIU is tasked to investigate corruption but appears to be corrupt themselves ... I have denied all allegations but the audi alteram partem rule was not followed by the SIU,” she said.
The SIU report flagged Bezuidenhout for one count of gross dereliction of duties and misconduct and contravening section 2 of the Estate Act while she was chief director. While acting as the chief master, she was found to have committed two counts of misconduct.
Deputy master Maphaha’s misconduct includes an irregular deal made through WhatsApp texts
Maphaha faces four charges — one for alleged intimidation and threats, another for contravening the public service code of conduct and two of misconduct that occurred three times between May 2022 and February 2023.
One of the matters that he and Bezuidenhout were alleged to be involved in was the irregular appointment of liquidators and going against the law of sequestration and liquidation.
When the company Cons Murch Mine was placed in voluntary sequestration and liquidation, Maphaha ignored the law that grants a group of creditors first preference in claiming from the sequestrated estate before individual creditors.
He was also found to have acted unlawfully by appointing trustees based on private arrangements through WhatsApp texts, which is not regulated by liquidation and insolvency laws.
This resulted in the creditors interested in the solvent estate being prejudiced in favour of the “selfish private interests of the trustees”, the report said.
Bezuidenhout had earlier requested an internal investigation. The SIU said a final unsigned investigation report found that Maphaha had erred in appointing a liquidator due to a WhatsApp message arrangement. The report was e-mailed to Bezuidenhout in January 2019. It recommended corrective measures be taken against Maphaha and an inquiry be held into the conduct of the liquidators.
However, no evidence of a disciplinary inquiry was found in affidavits from those who conducted the internal investigation.
In June 2020, the SIU referred the evidence of Bezuidenhout’s gross dereliction of duty and misconduct to the department of justice.
In another liquidation matter from August 2017, Maphaha was found guilty of contravening the Companies Act when he acted without authority in appointing additional liquidators.
The SIU interviewed Maphaha and the master of the Johannesburg high court Leonard Pule and both confirmed they had communicated with Bezuidenhout as acting chief master on the matter. Maphaha said he had followed instructions from Bezuidenhout to appoint the additional liquidators.
Further probes by the SIU found an e-mail by Bezuidenhout to Maphaha and Pule where she instructed: “Please proceed to appoint the chosen liquidators.”
Asked about such allegations, Maphaha said he had not seen the SIU report and was still employed by the department but referred all questions to the justice department.
Bezuidenhout maintains she never “favoured Maphaha and no evidence has shown this”.
SIU probed 273 matters and some had insufficient information
The SIU also detailed other staff implicated in corruption allegations including a couple, an acting master and a help desk operator at the Mbombela Master's Office who were allegedly running their own business with a law firm.
The firm came into existence once the couple were deployed at the Mbombela office. The duo allegedly received kickbacks which they used to buy a car from the law firm for referring beneficiaries. It was also found that the law firm paid R30,000 towards the car.
The SIU investigated 273 matters with 98.9% of them finalised. Twenty-eight irregularities were identified and 20 matters were dealt with by other agencies. The remaining three ongoing cases also identified irregularities. However, the rest found no evidence of maladministration, or matters were out of the scope of investigation. In some cases, there was insufficient information.
The department of justice declined to confirm the names of the 14 alleged transgressors as that would violate the Labour Relations Act, but confirmed having instituted recommendations by the SIU.
Out of the concluded disciplinary processes resulting from the SIU report, one official was found guilty and dismissed while two were found guilty and received a three-month suspension with no pay, said department spokesperson Kgalalelo Masibi.
“The department has decided to take the sanction of one of these officials under review, as provided for under... the Labour Relations Act. One official was found not guilty. The disciplinary process of the remaining officials is ongoing and it is anticipated that all hearings will be concluded by the end of November. This timeline reflects the department’s dedication to resolving these matters promptly and ensuring accountability,” she said.
Officials found to have potentially committed criminal conduct have been referred to the relevant prosecuting authority based on allegations of fraud and corruption.
“While disciplinary processes are ongoing with the department, the SIU findings have ensured that cases of a criminal nature are appropriately escalated for further legal action by the prosecuting authority,” Masibi said.
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