Gcaba gets more time to pay

Durban transport bus boss Mandla Gcaba. Picture: Nqobile Mbonambi/The Mercury

Durban transport bus boss Mandla Gcaba. Picture: Nqobile Mbonambi/The Mercury

Published Feb 5, 2016

Share

Durban - Durban transport bus boss Mandla Gcaba’s financial affairs were in the spotlight again this week when an order was granted in the Durban High Court effectively declaring him bankrupt and liquidating one of his companies.

But in a dramatic reversal of fortunes, the orders were recalled on Thursday morning and rescinded, giving him more time to pay his debt.

The now rescinded provisional sequestration order related to allegations that he was unable to pay more than R14 million he had owed a luxury car dealer for two years.

At the same time, Acting Judge Mokgere Masipa granted a provisional liquidation order against his Amandla Emicabango Investments.

However, later in the afternoon Gcaba and the man to whom he owes money, Shaun Duminy of SMD trading, went back to court with their respective legal teams asking that the orders be recalled.

The judge was busy with a trial and said they should return on Thursday morning.

SMD’s attorney Manogh Maharaj told the Mercury that his client had still been negotiating a settlement with Gcaba but had not communicated this to him by the time the matters were called.

Likewise Gcaba failed to communicate the same information to his attorneys. The rules of court made provision for the recalling and variation of orders erroneously sought and granted in these circumstances, he said.

Maharaj confirmed that any sequestration order would end Gcaba’s legal ability to operate the beleaguered bus company or any other business.

He also confirmed that several interested parties had already been in contact with him about the status of the bus company. He had directed them to Gcaba’s lawyers.

“The concern of the public is obvious and I hope that Gcaba and his legal team appreciate this.”

The court applications by Ballito-based SMD trading were initially made in November last year but have been adjourned from time to time with Gcaba indicating he intended to oppose them. He has, however, never filed any papers.

There were also behind-the-scenes negotiations. When these failed, SMD set the matter down on the roll again last month.

But Gcaba’s lawyers withdrew at the last minute and the matter was adjourned again until on Thursday to give him more time to oppose, if he wished.

In making the applications on Wednesday, advocate Shane Dayal, for SMD, told Judge Masipa: “If ever there were cases for sequestration and liquidation it is these.

“I do not say this lightly. There is a clear acknowledgement of debt and he has also committed a clear act of insolvency by saying he cannot pay.”

Regarding security put up by Gcaba, Dayal said it was insufficient.

“A number of vehicles have been pledged. But they are said to be worth only R9 million. There is also a life policy, but that is no security.”

Back in court on Thursday, he said both men had failed to communicate with their respective lawyers, and apologised to the judge for the confusion and time-wasting.

Duminy, in his papers, claims he was given 24 post-dated cheques, drawn on the Tansnat account, in one attempt by Gcaba to settle the debt.

The second cheque bounced.

The Mercury has also previously reported on a now-stalled application by the eThekwini Municipality to liquidate Tansnat, in which it is alleged it owes the city R53 million and Gcaba is “using its coffers as a personal bank account”.

Gcaba denies this debt and says the city owes him money. His spokesman, Vuyo Mkhize, has previously said that Gcaba is entitled, like any other business owner, to make regular drawings from his private businesses to cover personal expenses.

Mkhize said this week there had been a “big mistake” with the orders.

The bus service has been disrupted on numerous occasions in the past year because of a lack of money to buy diesel or pay staff, resulting in bailouts by the city.

The Mercury

Related Topics: