PwC has suffered another legal loss in its long-running battle with Choppies, a major supermarket chain listed on the Johannesburg Stock Exchange (JSE). The Botswana High Court dismissed an attempt by PwC and its audit partner, Rudi Binedell, to overturn a previous court decision in favour of Choppies. The ruling strengthens the retailer’s R650 million damages claim, which stems from the suspension of its shares in 2018 after financial results were delayed. Choppies claims that PwC and Binedell acted negligently, resulting in massive financial losses and a 75% drop in its share value. The delay also led to the company being suspended from both the JSE and Botswana Stock Exchange.
The dispute centres on allegations that Binedell intentionally held up the audit by demanding a forensic investigation, which Choppies says was unnecessary and driven by personal grievances. According to the retailer, Binedell acted in bad faith, partly because a job offer he allegedly received from the board was later withdrawn by CEO Ramachandran Ottapathu. PwC and Binedell have rejected these claims, stating that the audit was conducted in line with international ethical standards. However, the court has now found their latest legal argument unconvincing and upheld the earlier interlocutory ruling, which allowed for the separation of specific issues to be tried independently of the main lawsuit.
In this recent case, PwC also raised concerns about judicial bias, accusing two judges of favouring Choppies in earlier decisions. The court strongly dismissed these claims, warning against attempts to undermine the judiciary without proper evidence. The judge cited public policy principles and judicial conduct rules to argue that litigants cannot challenge judges in this manner while proceedings are ongoing. Choppies, which was founded in Botswana in 1986 and operates across Southern Africa, is seeking compensation for the reputational and financial damage caused by the suspension. The main lawsuit, now five years in the making, remains unresolved, but this latest ruling suggests that PwC faces a tough road ahead in its efforts to dismiss the claims.