Remgro has learnt a hard lesson from trusting Thabi Leoka’s academic credentials.
The investment heavyweight, controlled by billionaire Johann Rupert, hired the renowned economist as an independent director in March 2023, only to fire her less than a year later after it turned out she lied about having a PhD from the London School of Economics (LSE).
The scandal, exposed for the first time in today’s edition of Business Day by our companies and markets editor, Kabelo Khumalo, shows the need for due diligence and the fragility of reputation in a country where corruption and fraud are endemic.
Leoka, who also sits on the boards of Anglo American Platinum and MTN, was praised by Rupert as a valuable addition to Remgro’s board, with her experience in finance and passion for emerging markets and African economies.
Leoka, who is also part of the 19-member presidential economic advisory council, claimed to have a PhD and an MSc in economics from LSE. However, the PhD qualification could not be verified by the LSE, which has produced dozens of notable alumni, including 18 Nobel laureates and 34 heads of state.
Remgro withdrew Leoka’s appointment at its AGM, saying she was no longer available to serve as a director. The company did not give any explanation for her departure, nor did it address the issue of her academic fraud.
The scandal is a blow for Remgro, which has been diversifying its portfolio to include more exposure to technology and renewable energy sectors. It also raises questions about the company’s governance and oversight, as well as the quality of its board appointments.
Remgro is not the first SA company to fall victim to fake qualifications. Just last year, Tshepo Mahanuke was fired as Johannesburg Roads Agency (JRA) CEO after he was found to have lied about his qualifications, including a Harvard master’s degree. Serge Belamant, founder and former CEO of Net1 Technologies, which has since rebranded as Lesaka Technologies, was accused of faking his honorary PhD in information technology and management from Burkes University.
The list of business leaders, politicians and senior managers who have been accused of faking qualifications is long. Still, one that shocked the country the most is Pallo Jordan, a prominent intellectual and ANC leader, who falsely claimed in 2014 to have a PhD from the LSE.
Such cases erode public trust and confidence in the country’s institutions and leaders, especially at a time when SA is struggling to revive the economy and pull millions of people out of poverty.
Remgro, along with other SA companies and government departments, should learn from this costly mistake and tighten vetting processes for future board candidates. It should also be more transparent and accountable to its shareholders, and explain how it plans to prevent such incidents from happening again. Otherwise, it risks losing more than just a director.
Correction: January 16 2024:
A previous version of this article incorrectly stated that the LSE could not verify any of Leoka’s qualifications. In fact, the LSE only denied her PhD claim. Business Day apologises to Leoka for the mistake.
• Motsoeneng is Business Day deputy editor.
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