JSE bans Leoka for PHD claim, industry welcomes decision

The Johannesburg Stock Exchange’s (JSE) decision to fine and ban Thabi Leoka, former director of several listed companies, has been welcomed.

The local bourse announced that the disgraced director will face a R500,000 fine for lying about her doctorate qualification.

In a statement, the JSE says the penalty will include Leoka’s immediate disqualification from holding any office or directorship of a company listed on the JSE for five years.

The JSE says it afforded Leoka “numerous opportunities” to provide it with confirmation that she held a PhD in economics. However, she was not willing to co-operate with the investigTations into her qualification.

The JSE’s decision to fine and ban Leoka is welcomed by many as this warns others against dishonesty.

Gender Equality Director, Melanie De Nysschen elaborates: “It was probably a necessary thing right appointment needed to be made and the reality is the listings requirements are very clear and the qualifications of directors, which is first and foremost those requirements that are set by the companies act and the form that is submitted by individuals who are appointed as directors is very clear in saying that you commit to the integrity of the information that you’re presenting to the regulator or not to the regulator, to the stock exchange, the JSE. This is, of course, not a regulator, and so was there a responsibility on the JSE to check? I guess this the first point and I think perhaps it wasn’t. The JSE makes it very clear in the listings requirements that it’s the issuance obligation to check the information that is submitted to them. So, the question is, how far should the JSE go in actually checking the information that is submitted to them.”

Leoka served as a non-executive director of companies including Remgro, Anglo American and Netcare. She also held high-profile advisory positions with President Cyril Ramaphosa and former Finance Minister, Nhlanhla Nene.

Wits University Corporate Law Professor, Tshepo Mongalo, believes that Leoka’s actions were not necessary.

“If you claim to have such qualifications and skills, you are running a risk that when it comes to your performance of the duty of care, skill and diligence, you will be held to a higher standard because as a director with a particular skill and experience, you are held to a very high standard, unlike your fellow directors,” says Leoka.

According to the JSE statement, Leoka’s misrepresentation resulted in these companies sharing what was misleading information to investors and this raises questions about her integrity.