ABSA, along with two senior managers, has failed in their attempt to overturn a high court ruling that imposed fines and jail terms for contempt of court. This ruling stems from their failure to comply with court orders related to political disputes within the Thabazimbi Local Municipality. The banking giant, along with its relationship executive Emma Mankga and senior legal counsel Melissa Muller, had been found guilty of contempt in December 2023 after disregarding two separate judgments issued by Limpopo High Court Judges George Phatudi and Marisa Naudé-Odendaal.
In a judgment handed down by Acting Judge Mark Morgan, ABSA was fined R100,000, while Mankga and Muller each faced R50,000 fines. Additionally, both individuals were sentenced to 30 days of periodic imprisonment, which will be served over 15 weekends or public holidays. The judgment also required that Mankga and Muller report to the Polokwane police station within five days of the ruling, with a stern warning that failure to comply would result in their arrest and commitment to a correctional facility to serve their sentences.
The controversy began when the Thabazimbi Local Municipality and its municipal manager, Gladwin Tloubatla, accused ABSA of obstructing their access to accounts and instead favoring a rival faction led by former municipal speaker Ben Tlhabadira. ABSA was found to have disregarded two court orders issued in favor of Tloubatla, resulting in legal action. The situation was further complicated by the political instability within the municipality and competing claims over control of its finances.
Despite the judgment, Mankga and Muller were not immediately imprisoned as ABSA filed an application for leave to appeal the ruling. On Friday, Acting Judge Morgan rejected ABSA’s appeal for leave to challenge the judgment, delivering a scathing response. The judge criticized ABSA’s refusal to comply with the court’s orders, labeling it a deliberate tactic to undermine judicial authority. The bank’s failure to provide adequate legal justification for its actions and its selective disclosure of information were cited as evidence of contemptuous behavior.
ABSA has since announced its intention to request permission to appeal the ruling from the Supreme Court of Appeal. The bank contends that it could not reasonably be guilty of contempt, as the orders were subject to multiple appeals, which it argues suspended their enforcement. ABSA further stated that the dispute over control of the municipality’s accounts became moot after the municipality was placed under administration last year, and that full access to the accounts was granted to the appointed administrator.
In his judgment, Acting Judge Morgan firmly rebuked ABSA’s conduct, emphasizing the need for a strict response to uphold the dignity of the court and the rule of law. He warned that allowing well-resourced parties to manipulate the legal process would set a dangerous precedent, enabling them to evade their legal obligations by citing unfounded claims of legal uncertainty. The judge stressed that court orders must be respected and obeyed, describing them as the voice of justice and an essential pillar of governance. His judgment reaffirmed that justice must be upheld, regardless of the power or influence of those seeking to avoid it.
In a powerful conclusion, Acting Judge Morgan reminded all involved that the law must be obeyed, and failure to do so erodes the foundation of governance and order. His judgment served as a clear reminder that the authority of the court is not negotiable and that compliance with its orders is non-negotiable.
