ELIDZ VINDICATED OF WRONGDOING IN PROTRACTED COURT CASE

29.05.2020
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EAST LONDON INDUSTRIAL DEVELOPMENT ZONE SOC LTD (ELIDZ) VINDICATED OF WRONGDOING IN PROTRACTED COURT CASE

The ELIDZ welcomes the judgment handed down by Judge Bantubonke Tokota today in the East London High Court in the case of Ms BN Magongwa v East London Industrial Development SOC Ltd.

Chairperson of the ELIDZ Board, Professor Mlungisi Makalima said: “The Board of the East London IDZ, whilst not wanting to be triumphalist in this matter, is pleased that the Court has recognized the commitment of the organisation to maintaining the highest standards of professionalism and good governance. We take this opportunity to renew our commitment to the execution of our mandate to contribute to provincial efforts in uplifting the socio-economic status of this region. We also note with satisfaction management’s skillful handling of this matter, which has vindicated the organisation’s position.”

“We welcome High Court judgment as confirmation that the organisation had acted lawfully when it terminated Ms Magongwa’s contract in 2015,” said ELIDZ Chief Executive Officer (CEO), Mr Simphiwe Kondlo.

“Most importantly, this re-affirms the ELIDZ’s position as an effectively run organisation, that bases its structure and corporate culture on good corporate governance principles. This is mainly due to the robustness of the relationship between the ELIDZ’s Board of Directors and Executive Management as well as its strict adherence to the fiduciary responsibilities which include providing stewardship that ensures compliance and accountability for legal, financial, investment, and audit requirements,” said Mr Kondlo.

“We would like to thank our Legal Counsel for its guidance throughout the period of the case as it laboured to ensure that justice was served,” said Mr Kondlo.

The ruling follows the institution of legal proceedings against the ELIDZ by Ms Magongwa’s Legal Counsel for damages she allegedly sustained through repudiation of her contract of employment between the two parties. In his judgment, Judge Tokota noted that “In all the circumstances I am of the view that the plaintiff (Ms Magongwa) has failed to prove a preponderance of probabilities that the defendant has repudiated her contract of employment in any manner and is therefore not entitled to the relief sought”.

Ms Magongwa’s claim against the ELIDZ was unsuccessful. The court dismissed her claim and awarded the ELIDZ a cost order which allows it to recover legal costs incurred by the ELIDZ from Ms Magongwa.

END

Issued by ELIDZ
For media queries contact:
Manager: Marketing & Corporate Communications
Mr Sibusiso Ralarala
Email: sibusisor@elidz.co.za
Tel: 066 283 9203

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