Cipro not told of Yengeni convictions

2010-11-17 16:01

Cape Town - Former ANC chief whip Tony Yengeni was not listed on the register of disqualified directors as the Registrar of Companies was not provided with the relevant information, Trade and Industry Minister Rob Davies said on Wednesday.

Yengeni resigned the directorships he held in six companies on November 4, after the Democratic Alliance laid charges against him for serving as a director of the companies, because by law his jail sentence for fraud precluded him from doing so.

Section 218 of the Companies Act disqualifies anybody jailed for theft, fraud, forgery or perjury from being a company director, unless the High Court sets aside the disqualification.

In written reply to a parliamentary question on Wednesday, Davies said, according to the Companies and Intellectual Property Registration Office (Cipro), section 219 of the Companies Act required the Registrar of the Court to provide the Registrar of Companies with copies of court orders and convictions.

This was then used to update the register of disqualified directors.

"Mr Yengeni was not listed on the register of disqualified directors as the Registrar of Companies was not provided with the relevant information," he said.

No action taken

The Registrar of Companies would continue to work with the Registrar of the Court to develop and maintain a system that would facilitate the submission of such information to speedily and appropriately allow for listing the necessary individuals on the register.

The legislation gave companies capacity to appoint their own directors and register them with Cipro for record keeping.

According to Cipro, no action had been taken against any of the Cipro agents at this stage, as the processes of lodging the relevant CM29 form (details of directors), were met at the time, Davies said.

After he resigned the directorships on November 4, Yengeni instructed his attorneys to prepare an application seeking authority from the High Court for him to hold the office of director.

Responding in a statement later on Wednesday, DA spokesperson Tim Harris said Davies's reply appeared to absolve Cipro, but it now shone the spotlight squarely on the justice department.

He called on Justice Minister Jeff Radebe to explain why his department had apparently failed to fulfil its legal duty, thereby allowing Yengeni to illegally hold directorships in several companies for the past five years.

  • GT - 2010-11-17 16:08

    of course they have not tied it up with the justice system/ police records to do a simple cross reference of an ID number. All this tells us is the CIPRO is not worth the IT spend or manpower. We could have an unlimited number of convicts as company directors. And we are suprised when SARS gets a fat carrot from the crooks & people like Majali hijack companies. The government needs to wake up to the fact that CIPRO being compromised is jsut about the most serious thing that can happen. Its implication can (and already has it seems) spread like cancer into TAX, Banking and all kinds of other sectors. Will anyone lose a job over this?

  • scott - 2010-11-17 16:39

    is there any point in Cipro. Just another useless government department that has screwed up another case of blatant disregard for the law.

  • scott - 2010-11-17 16:44

    Cipro cant change the fact that Yengeni was convicted,is a criminal and further broke the law by taking directorship of 6 companies. this does not change the fact that what he did was illegal. Sorry you cant fire me for breaking the speed limit because i never knew that if you drove too fast it is against the law. Surely his lawyers,if he cant think for himself,would have reviewed his directorship letters of employment and at least advised him that he couldnt do it legally? i would fire them.

  • scott - 2010-11-17 16:46

    so which government department screwed up this time?

  • SaligSondaar - 2010-11-17 16:48

    And the CIPRO staff have never heard of this Yengeni dude before? Never read the newspapers, never watched the news? Obviously it is "not in their job descriptions".

  • AllHoliday - 2010-11-17 17:24

    Just another cover-up? Are there any government departments that are not incompetent or corrupt? How long before we end up like the rest of Africa?

      Zion - 2010-11-17 17:53

      We are there already.

      franssmith100 - 2010-11-17 21:40

      going, going gone.. - i am out of here in three weeks if the bloody goverment departments can just do there jobs - they have allready delayed me by three months due to total incompetance in lie after lie.

  • franssmith100 - 2010-11-17 21:38

    ok so some goverment dept screwed up again.. but, i hear nothing of Toni Yengeni (who was in breach of his parole, which he should not have gotten in the first place!) being brought to justice. A CONVICTED CRIMINAL, BEING RELEASED ON PAROLE, COMMITTING CRIMES WHILST ON PAROLE? THIS GOVERMENT IS A JOKE!! SORRY SA, NO HOPE.

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