The Supreme Court of Appeal (SCA) has dismissed the Limpopo MEC for Public Works, Roads, and Infrastructure Ernest Rachoene’s application for leave to appeal a High Court ruling which set aside his decision to fire the Road Agency Limpopo (RAL) board and CEO Gabriel Maluleke.
The SCA’s decision, delivered on 30 January 2025, upheld the Polokwane High Court’s ruling to reinstate Maluleke and the agency’s board, which Rachoene had unlawfully dissolved in July 2024.
The ruling is a serious blow to Rachuene, who was accused by the Forum of Limpopo Entrepreneurs (FOLE) of removing the board and CEO for tender and business reasons, to raise funds for Premier Phophi Ramathuba’s campaign to become the next Limpopo ANC chairperson.
In the Judgement, the court slammed the department’s appeal as having “no reasonable prospect of success” and ordered it to pay costs.
“The application for l(e)ave to appeal is dismissed with costs on the grounds that there is no reasonable prospect of success in an appeal and there is no other compelling reason why an appeal should be heard.” reads the judgement.
The ruling reaffirmed the Limpopo High Court’s finding that Rachoene’s decision to dissolve the RAL board and suspend Maluleke flouted statutory provisions and did not follow due process.
The saga began in July 2024 when Rachoene abruptly dissolved the RAL board without notice, axing chairperson Matome Ralebipi and his team, who had stabilised the once-troubled agency.
Weeks later, on 30 August 2024, Rachoene suspended Maluleke and appointed former ANC MP Moses Tseli as a one-man “Interim Accounting Authority”.
Maluleke fought back, filing an urgent High Court application on 25 September 2024 to challenge his suspension and the board’s dissolution. In his application, he argued that Rachoene had violated the Limpopo Province Roads Agency Proprietary Limited and Provincial Roads Act, and the provisions of Section 17 of the Companies Act, which requires directors to receive notice and a chance to defend themselves before removal.
On 8 October 2024, the Polokwane High Court ruled in Maluleke’s favour, reinstating him and the board while nullifying Tseli’s appointment. Undeterred, the department filed an appeal on 9 October 2024, claiming it had received legal advice to challenge the decision.
The SCA dismissed the department’s appeal on 30 January 2025, with the court finding no merit in the application. However, the department is not backing down.
On 17 February 2025, the department’s attorneys, Motina Attorneys, wrote to Maluleke’s legal team, K.E. Modiba Attorneys, informing them of their intent to approach the Constitutional Court.
In the letter seen by African Times, they stated, “We have already taken instructions from our clients on the order, and we have been instructed to approach the constitutional court. You will be served with the constitutional court application in due course.”
A source close to the case slammed the move as a delaying tactic.
“The matter was handled by the Polokwane High Court. They lost and appealed. They appealed to the SCA and lost again. Now, they have taken a decision to approach the Concourt. I think they are just buying time. They are hoping that the Constitutional Court would say, ‘come back in January next year’, so that they could say to the public ‘we have taken the matter up with the Concourt’. It is not a constitutional matter,” said the source.
The criticism echoes earlier claims by the Forum of Limpopo Entrepreneurs secretary, Siviko Mabunda.
He accused Rachoene of wasting taxpayers’ money and using RAL as a cash cow to fund Ramathuba’s political ambitions ahead of the 2026 ANC provincial conference.
