R500,000 fine and directorship ban – the cost of lying about your degree in South Africa
Economist Thabi Leoka has faced severe consequences after being found to have misrepresented her academic qualifications.
This issue, which first gained public attention earlier in the year, culminated in her being fined R500,000 and disqualified from serving as a director for JSE-listed companies for five years.
The matter stems from allegations that Leoka falsely claimed to have obtained a PhD in Economics from the London School of Economics (LSE).
Leoka’s credibility as a prominent economist came under scrutiny after her alleged qualifications were questioned late last year.
The controversy began when investment company Remgro withdrew her appointment as a director before its annual general meeting in December 2023, notably omitting the title “Dr” from her name. Although Leoka stepped down from board positions at major companies such as MTN and Anglo American in January, the matter did not rest there.
Reports surfaced suggesting she did not hold a PhD from LSE as she had claimed in official disclosures and her curriculum vitae.
While Leoka maintained that the allegations were baseless and provided what she described as a PhD document from LSE, the validity of this document was never established.
On the contrary, an LSE spokesperson confirmed that the institution had no record of awarding her a PhD.
This statement, combined with her failure to provide the JSE with verified proof of her qualification, led to the conclusion that her claims were false.
The JSE subsequently launched an investigation, engaging with Leoka multiple times and offering her opportunities to respond to the allegations and submit evidence.
However, she failed to provide any substantive proof to refute the claims.
The JSE’s findings highlighted that Leoka had not only misrepresented her academic qualifications but had also included the false information in official disclosures for companies like Remgro, MTN, and Anglo American.
This misrepresentation misled these companies, which then incorporated the inaccurate information into public disclosures, undermining the trust and transparency required of listed entities.
The JSE said that governance and integrity are cornerstones of its regulatory framework.
Directors of JSE-listed companies are expected to uphold the highest standards of honesty, transparency, and ethical behaviour.
By misrepresenting her qualifications and failing to cooperate with the investigation, Leoka breached these standards, raising serious concerns about her integrity and suitability as a corporate leader.
The JSE emphasised that her actions not only violated the exchange’s rules but also demonstrated a disregard for accountability to the companies she served and to the broader investing public.
The consequences for Leoka were significant.
The JSE imposed a public censure, a R500,000 fine, and a five-year ban on holding directorships in any JSE-listed company.
These penalties underscore the seriousness with which the exchange treats issues of governance and transparency.
According to the JSE, directors must act in the best interests of their companies and stakeholders, maintaining trust in corporate disclosures and the broader market.
Leoka’s conduct, characterised by dishonesty and non-cooperation, fell far short of these standards.
This case also serves as a cautionary tale for professionals in positions of trust.
The JSE stressed that directors bear a responsibility to act with integrity, particularly when representing companies in the public eye.
Misrepresentation not only damages individual reputations but also undermines the credibility of the organisations involved, potentially eroding investor confidence.
Leoka’s fall from grace is particularly striking given her previous prominence.
Beyond her roles at MTN and Anglo American, she had also served on the boards of companies like Netcare and was a member of the Presidential Economic Advisory Council and the commission of inquiry into the Public Investment Corporation.
These roles had positioned her as a respected voice in economic policy and corporate governance. However, the revelation of her false qualifications and the subsequent penalties imposed by the JSE have significantly tarnished her professional reputation.
The JSE’s ruling reflects its commitment to enforcing high standards of corporate governance.
By holding Leoka accountable, the exchange sends a clear message that dishonesty and ethical lapses will not be tolerated.
This decision not only reinforces the importance of transparency and integrity in listed companies but also aims to restore investor trust in the governance of South Africa’s corporate sector.
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