Former MTN boss sued for R6m

Former MTN CEO Maanda Manyatshe has been slapped with a R6.2 million claim for allegedly not paying forensic consultant Bart Henderson.

Manyatshe tasked Henderson with clearing his name, after the South African Post Office (SAPO) laid charges of fraud against Manyatshe.

Manyatshe, who left SAPO to head up MTN, became embroiled in a legal dispute with the SAPO, after criminal charges of fraud and corruption were laid against him. The charges suggested he had undermined SAPO's procurement processes when awarding several tenders.

The allegations related to a controversial refurbishment contract, worth R2 billion, which Manyatshe awarded to Vision Design House during his time at SAPO. Media articles at the time alleged Manyatshe had abused his position and not followed proper procedure when awarding the deal.

Manyatshe was hired by MTN as MD of its South African operations in 2004, after he left his position as CEO of SAPO. While in his MTN position, criminal charges of fraud and corruption were laid against him by SAPO.

Manyatshe hired Henderson about four years ago to investigate the matter and clear his name of all wrongdoing. He also subsequently sued SAPO for R270 million in damages. In 2008, SAPO and Manyatshe settled the matter out of court, although the value of the amount was not revealed in SAPO's financial statements.

Manyatshe apparently agreed to pay Henderson Solutions 10% of the settlement amount, yet, according to invoices in ITWeb's possession, no payment has been made to Henderson's company.

However, it is believed, based on the court papers, that Manyatshe settled for a written apology and would not be paid damages, an agreement Henderson argues was done without his knowledge although he was meant to be at the forefront of any settlement.

As a result, summons have been served on the former MTN boss and SAPO CEO in a bid to force him to pay R6.2 million - which is based on the 450 days Henderson spent working on the legal wrangle, and not the unknown settlement amount. Henderson is also claiming an alternative amount of R5.4 million based on the hours he wasted working on Manyatshe's case.

The summons was served last week, and Manyatshe has until about 10 October to indicate whether he will defend the matter, says Henderson's attorney, Louise Viljoen. Viljoen does not know when a court date will be set.

Manyatshe tells ITWeb that he will defend the lawsuit, but will not provide details of his defence. He expects to file his papers today.

The summons, a copy of which is in ITWeb's possession, details the work that Henderson did to attempt and reverse the damage to Manyatshe's reputation, and stave off a R32 million claim instituted against him by SAPO.

Henderson claims in the summons that the parties entered into an oral agreement in September 2006 and, as a result, Henderson would drive a campaign to clear Manyatshe's name.

In addition, says the court paper, Henderson would lead the defence team and would play a pivotal role in any negotiations between Manyatshe and SAPO. Henderson was to be paid 10% of any damages settlement with SAPO, which was based on his R270 million civil action against the post office.

If the settlement amount was below R32 million, or no agreement could be reached by November 2008, Henderson was to be paid at his usual rates, says the claim.

Henderson has declined to comment on the matter at the moment, as it has yet to appear before court.