Team size: 82

What are the most significant cases and transactions that your legal team has recently been involved in?

The IDC had been engaged in a protracted court action with Oakbay Resources (“Oakbay”) to claim repayment of the loan advanced to Oakbay. This occurred prior to the allegations of state capture and other corrupt activities becoming public knowledge, which ultimately led to the IDC terminating the Loan Agreement. Subsequently, the parties reached a settlement agreement, which was then made an order of the court. This matter holds strategic and national importance, given that Oakbay is an entity owned by the Gupta family, which is facing allegations of state capture as determined by the State Capture Commission of Enquiry. The IDC’s successful outcome, resulting in full repayment of the capital amount plus interest, security costs incurred to secure the attached assets, and the full legal costs on an “attorney and own client” scale, marks a significant victory.

Furthermore, the IDC is a major player in the just energy transition and in promoting energy supply security within the country. It funds energy generation and efficiency projects, recognising electricity supply as the top risk facing the South African economy. Funding approvals for energy investments exceeded R2bn, encompassing support for project developers participating in IPPPP and Risk Mitigation IPPPP. A key priority lies in empowering less privileged communities, with the IDC having funded several community trusts as part of its multibillion-rand investment in this sector. This also contributes to meaningful economic benefits and job creation. The IDC’s legal and compliance teams are core in these transactions by providing legal advice, conducting due diligence investigations, and preparing agreements.
Finally, we have been involved in support for ailing industries, including post-unrest and flood relief response. Certain sectors, such as tourism, were hard hit by COVID-19 due to travel restrictions. Additionally, recent unrest in KwaZulu-Natal (KZN) and Gauteng, as well as floods in KZN, severely affected regional economies, resulting in job losses. In response, the IDC approved and disbursed multibillion-rand funding to assist businesses and preserve jobs. Once again, the IDC’s legal and compliance teams were instrumental in implementing agile initiatives, enabling the IDC to provide swift solutions to these unexpected emergencies facing both the nation and the world.

How do you see the general counsel role evolving in South Africa over the next five-ten years?

The heightened attention to risk management has broadened the role of the general counsel (GC) over time. A company embarking on new initiatives or strategies must have a GC at the table so that risks are analysed before implementation. GCs will increasingly become viable candidates for the role of CEO, which is evidence of their growing role as business partners. The role of the GC will go beyond just providing a “legal stamp” of approval – GCs are to be seen as “business leaders” who understand the company’s strategy and effectively partner with management to drive that strategy.

How do you suggest in-house lawyers build strong relationships with business partners?

It is critical for in-house lawyers to see themselves as “business partners” and “enablers.” This includes an intimate knowledge of the business, company strategy, and priorities. It is important to be a “trusted advisor.” In-house lawyers must know the industry, trends, and regulatory landscape affecting their business.

I believe in-house must be flexible and available to the business, as well as develop strong communication skills and be a team player. Furthermore, lawyers must empower and educate the business about their legal and regulatory obligations. Finally, we must be practical and provide solutions, not problems – offer practical and actionable advice that goes beyond pure legal theory; be solution-minded assisting the company in being progressive without placing the business at risk.