ABSA has defended its actions following a scathing Limpopo High Court ruling fining the bank and two of its senior managers R200,000 for “undue interference” in the troubled Thabazimbi Local Municipality’s operations.
Acting Judge Mark Morgan found the banking giant, its relationship executive: public sector-retail and business banking in Limpopo Emma Mankga, and senior legal counsel: litigation Melissa Muller guilty of contempt of court for failing to comply with two judgments handed down by Limpopo High Court Judge President George Phatudi and Judge Marisa Naudé-Odendaal, in December 2024 and August last year, respectively.
While Absa justified its decisions as having been taken as a result of finding itself caught in the middle of a conflict between two political factions within the municipality, each vying for control of the high public office, Acting Judge Morgan stated that this may be partially accurate but believes the bank’s undue interference in matters beyond its concern only worsened the situation.
The political factions fighting for control of the municipality, which is now under administration after its council was dissolved last year, and Paul Maseko, appointed administrator, were led by municipal manager Gladwin Tloubatla and former speaker Ben Tlhabadira of the Thabazimbi Forum 4 Service Delivery.
In the course of the lengthy battle, Tlhabadira’s faction successfully interdicted Tloubatla’s from accessing the bank accounts in an application filed at the Thabazimbi Regional Court, which was later reviewed and set aside.
Absa official Mankga’s role in the legal wrangling was that she exercised control of the municipality’s bank accounts held at the bank’s Thabazimbi branch while her colleague Muller dealt with the legal aspects of the disputed access to and control of the accounts from at least December 2023.
In December, Acting Judge Morgan found that Absa, through Mankga and Muller, attempted to unilaterally assume the role of a self-appointed administrator or curator of the municipality’s finances and management, despite the absence of any lawful decision or legislative framework empowering or obliging it to do so.
The contempt of court application brought by the municipality and Tloubatla related to failure to comply with both Judge President Phatudi and Judge Naudé-Odendaal’s rulings.
Acting Judge Morgan fined Absa R100 000 while Mankga and Muller were each slapped with R50 000 fines as well as periodic imprisonment of 30 days for contempt of court, which will be spent on weekends or public holidays over 15 weekends or less.
Absa this week confirmed that after careful consideration of the judgment, it has decided to seek leave to appeal.
”It (Absa) will do so on the grounds that, as a question of law and fact, it cannot reasonably be guilty of contempt in circumstances where the relevant orders were the subject of multiple appeals and cross-appeals, which had the effect of automatically suspending their operation and left Absa unable to implement their terms,” the bank explained.
In addition, according to Absa, in the interim, the Limpopo provincial government placed the municipality under administration, thereby rendering the dispute as to entitlement to operate the municipality’s account entirely academic.
”Absa can further confirm that it has subsequently provided the clearly mandated administrator (Maseko) with full access to the accounts,” the bank added.
Attempts to contact Maseko were unsuccessful.