SA’s two biggest law firms dragged into the case of suspended Mhlathuze Water CEO

Suspended Mthokozisi Duze. File Picture

Suspended Mthokozisi Duze. File Picture

Published Jul 12, 2022

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Durban – Two of the country’s biggest and most prominent law firms have been sucked into the highly charged disciplinary hearing of suspended Mhlathuze Water Board chief executive waMthokozisi Duze.

Norton Rose Fulbright and ENSafrica, both of which have operations in South Africa and across Africa, were allegedly given the green light by Duze for legal work.

Duze’s approval was given even though ENSafrica was not part of the 16 law firms shortlisted and eventually approved by the entity for all legal work a year earlier, 2018. It is not clear in the court papers what kind of work they did for the water board, but ENSafrica charged (per hour) almost double the other approved law firms (mainly black-owned).

Norton Rose Fulbright (and three others) was given the nod to do legal work and later paid even though their hourly rate was yet to be agreed upon and sealed by having it in black and white on paper.

All this information about the alleged wrongdoing is contained in extensive papers filed by Duze and the water board before the Labour Court where the water board boss wants to have his suspension set aside and returned to work with immediate effect – arguing his suspension is without merit and prejudicial.

On July 1 this year, Labour Court Judge Dephny Mahosi, sitting in Johannesburg, dismissed the court application, saying the matter lacked the urgency Duze and his legal team claimed in their papers.

But Duze vowed that he would fight on, claiming the court said the dismissal was not based on the merit of the case, but it was merely on its urgency.

Regarding the internal disciplinary hearing, Duze is facing 16 counts and has been warned that they were so serious that he could be fired if found guilty. Due to his and the actions of suspended CFO Babongile Mnyandu, the entity allegedly lost millions in dubious expenditure.

All the counts on the charge sheet emanate from legal work that the troubled water board based in Richards Bay in northern KwaZulu-Natal assigned to law firms.

“On June 6 2019, you approved payments and to the following law firms at the following rates for work completed in absence of their approval from the legal services panel … You approved payment to Norton Rose Fulbright notwithstanding the fact that this law firm did not form part of the panel.

“In the alternative to count 3, it is alleged that you conducted yourself in a grossly negligent manner as described in paragraphs 16 and 17 above,” reads count 3 in the charge sheet.

What raised eyebrows about ENSafrica was the company had charged the water board R4 608.69 per hour while most of the other companies, including Norton Rose Fulbright, its closest competitor in terms of stature, charged no more than R2 500 per hour.

The matter is yet to be heard and ruled upon by the Labour Court, which is due to sit in Durban on a date yet to be determined.

sihle.mavuso@inl.co.za

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