RAL and its former CEO resolve court dispute
The dispute between the former Roads Agency Limpopo [RAL] CEO Gabriel Maluleke and the agency has been amicably resolved. This follows negotiations between the parties.
The amicable resolution has seen Maluleke withdrawing his urgent application in the High Court and Roads Agency Limpopo undertaking to contribute to his legal costs to close this matter.
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The dispute began in July 2024 when Public Works, Roads, and Infrastructure MEC Ernest Rachoene dissolved the RAL board without notice. He also suspended Maluleke weeks later. Maluleke challenged the decision in court and succeeded.
But, the Polokwane High Court ruled these actions unlawful, citing violations of the Roads Act and Companies Act.
MEC ERNEST RACHONE RELIEVED THAT ROAD AGENCY LIMPOPO HAS RESOLVED DISPUTE WITH FORMER CEO
In a media statement released on Friday, the department confirmed that Maluleke withdrew his High Court application challenging his suspension.
“In terms of the settlement Maluleke’s employment contract terminated on 31 December 2024, and he leaves RAL with a clean record as RAL agreed to set aside his dismissal and suspension,” said MEC Rachoene.
“This constructive settlement paves the way for the appointment of the new Board of Directors and a new CEO which will be finalized in due course. The MEC for the Department of Public Works, Roads and Infrastructure Ernest Rachoene who is the main shareholder at RAL and was also cited in court papers, welcomes these developments, indicating that the agency will now focus on service delivery.
“We would like to thank Maluleke for the constructive way he approached the negotiations between him and RAL, leading to the final resolution of the matter, and we wish him well in his future endeavours.”
“It also comes as a relief that this withdrawal of the application by Maluleke also settles the leave to appeal of the SCA and the Constitutional Court. The Senior Councils of both parties are currently engaging to finalise the details of the settlement,” added MEC Rachoene.
The MEC further says this will allow the Roads Agency Limpopo to fully focus on its core mandate, which is to upgrade roads from gravel to tar.
