Legal row over Durban festival funds

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File photo

Published Feb 3, 2016

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Durban - The proceeds of online ticket sales from a Durban beachfront Christmas music festival are at the centre of a legal row between the event owners and a contractor hired to organise the event.

Gagasi FM says it contracted with Sibonga Mhlungu, trading as “Great Zulu”, to organise the event and paid him R500 000 up front.

The deal, it says, was that Mhlungu would pay everything to set up the festival. In return the radio station would take 100% of ticket sales, up to 2 000 sales, after which the proceeds would be split in half.

However, in an affidavit before the Durban High Court, Gagasi managing director Vukile Zondi now accuses Maverick Stretch Tents of trying to “steal a yard” on the money sitting in Computicket’s account, to satisfy Mhlungu’s debt for hiring marquees for the Christmas event and others.

Maverick went to court in December last year in an urgent application against Mhlungu and Computicket, claiming R215 000 plus costs and interest and an order restraining the payout of R283 000 from Computicket’s account.

In his affidavit, MD Mathew Bower said the company had supplied marquees to Mhlungu for the Gagasi beach festival in 2014 and a New Year’s Eve party in Pietermaritzburg. He made no payments and reneged on a subsequent settlement agreement.

“Our investigations showed he had no assets and was not officially employed. He told us that he lives with his father and had lost his car.”

Bower said in November last year, Mhlungu made a payment of R20 000. “He then said he needed our services further for the Gagasi FM 2015 beach festival.

He said this would enable him to get back on his feet and he promised to pay R93 000 up front and then he would be able to pay the balance he owed,” Bower said.

“But again he did not pay.”

The company secured an interim order directing Computicket to pay R93 000 into its attorney’s trust account, pending finalisation of the application. Mhlungu was directed to show cause by on Tuesday why he should not be declared in debt in the capital sum of just more than R200 000, including interest.

On Tuesday, when the matter was called before Judge Isaac Madondo, Mhlungu was not in court.

The matter was adjourned until later this month.

The Mercury

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