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DA: Statement by Tim Harris, Democratic Alliance shadow minister of trade and industry, on Tony Yengeni’s illegal directorships (17/11/2010)

17th November 2010

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The Democratic Alliance calls on the Minister of Justice to urgently explain why they appear to have not complied with the Companies Act in the case of Mr Tony Yengeni.

Today's response by the Department of Trade and Industry (DTI) to a parliamentary question I posed shines the spotlight squarely on the Department of Justice. Minister Jeff Radebe's department has apparently failed to fulfil their legal duty, thereby allowing Tony Yengeni to illegally hold directorships in several companies for the past five years.

Section 218 of the Companies Act requires the Registrar of Courts to provide the Registrar of Companies with copies of court orders and convictions to trigger the registration on the register of disqualified directors, but the DTI has now confirmed that they did not receive the relevant documents related to Mr Yengeni's case.

I will also consult with the Judge President of the North Gauteng High Court, to establish whether the Court was aware of any failure by the registrar of the court to comply with the act.

Two weeks ago I laid a criminal change against Mr Yengeni for his apparent breach of the Companies Act by retaining directorships despite his fraud conviction. At the same time I asked a parliamentary question of the Minister of Trade and Industry and one of the Minister of Justice to confirm whether these departments fulfilled their obligations in terms of the Act.

Today's answer from the DTI appears to absolve Cipro, but it now shines the spotlight squarely on the Department of Justice. The Minister must urgently answer the question I posed him so that we can get to the bottom of this affair.

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