Bheki Cele on hook for R93m after police robbery
Police minister Bheki Cele has been dealt a costly blow by the Pretoria high court, which ordered him to pay R93m in damages to the underwriters of Nedbank, whose cash was stolen by members of the police service in 2014.
The court found that Cele was vicariously liable — a legal principle that holds a person responsible for the actions of another person who is under their supervision — for the actions of his officers. The officers, along with other criminals, were convicted in 2018 for robbing a cash storage company in Witbank. The officers were on duty at the time, and used their police uniforms and vehicles to facilitate the heist.
Cele said the police acted “on a frolic of their own”, and one employee of the firm, SBV Services, was the true “kingpin” of the robbery. Judge Natvarlal Ranchod said these arguments were “irrelevant”, the officers’ conduct was closely connected to the minister’s business and he could not escape liability. The 2014 crime took place on SBV’s Witbank premises. SBV works with Absa, FNB, Standard Bank and Nedbank, storing and securely transporting their cash.
Several robbers, including SA Police Service officers, broke in and made off with more than R100m in cash, primarily belonging to Nedbank. Several of robbers were eventually caught, prosecuted and convicted. This included the two SAPS officers, Tamsanqa Gladstone Khubeka and Lekele Reckson. It was not disputed that both were on duty while committing the robbery. They were fired after conviction.
SBV was indemnified by underwriters at Lloyd’s of London. The insurance policy stipulated that Lloyd’s would indemnify SBV for losses of cash under SBV control or custody on behalf of bank clients. The policy included losses due to robbery.
Lloyd’s instituted proceedings in 2016 against the minister for criminal activity committed by his employees at the time.
In SA law, an employer can be sued for wrongful actions of employees acting at the time in the “course and scope” of their work. Lloyd’s argued that Khubeka and Reckson were on duty at the time as Witbank officers. Their work resources enabled them to help commit the robbery. Lloyd’s said the two used their status as officers to cover up the robbery and frustrate investigations.
The case took a decade to finalise due to criminal proceedings and applications between Lloyd’s and the minister. Trials, which involve calling and crossexamining witnesses, tend to take long, and there are thousands of pages for judges to read. As the Judicial Service Commission has often said, all court rolls are extremely clogged. The high court’s Gauteng division, where this matter was heard, is seen as the busiest in the country.
Ranchod said the minister admitted to several aspects of Lloyd’s claim regarding Khubeka and Lekola’s involvement, but later tried to withdraw these admissions. These fights prolonged the matter. The court eventually dismissing the minister’s attempts. In terms of law, he had conceded Khubeka and Lekola’s involvement.
The minister said that SBV’s banks did not properly give authority to Lloyd’s as the banks all had their losses paid out. But Ranchod said this was incorrect and Lloyd’s “claim remained valid and enforceable” against the minister due to the signed insurance policy.
Ranchod cited Constitutional Court case law in which the minister was found to be “vicariously liable” for police committing crimes on duty. “In my view, that is the case here and the minister is liable on that basis.” Ranchod awarded R93m, with interest from 2014, plus costs.