Durban - Durban businessman Bruce Galloway, who disappeared under mysterious circumstances last year and was later found in Kloof Gorge, is at odds with his former business partner over money both men say they are owed.
Galloway, who said he was abducted from his home by armed robbers last July, was found three days later on a ledge in the gorge less than 5km from his home.
Although his version of events were the subject of online rumours and media reports, police ruled out foul play and were satisfied Galloway did not fake his abduction.
Yesterday Galloway brought an application for summary judgment in the Durban High Court claiming his former business partner, Boniface Ndokweni, owed him and his companies more than R1 million. But Ndokweni said in his opposing affidavit that a forensic investigation revealed that Galloway had been unable to account for R2.4m from the business and would be making a counterclaim.
According to court papers, Ndokweni and Galloway agreed in 2011 to run a Nongoma Spar through Castlehill Trading.
Galloway claimed that he, representing Waykim Management Services, and Ndokweni had an agreement in which Waykim would carry out financial administration, bookkeeping and accounting services for Castlehill Trading and would be paid 1 percent of the company’s monthly turnover.
Later the work being done by Waykim was taken over by G and M Investment Group, another company associated with Galloway.
It is alleged that Waykim loaned money to or made payments for Castlehill Trading and was owed R412 760. G and M was allegedly not paid for its services and was owed about R197 000.
Galloway said he also loaned money to the business and was personally owed R930 000.
He said it was agreed in July last year that the Nongoma Spar would be bought back by the Spar Group for about R2m.
Galloway said it was also agreed that he, and the companies he represented, would be paid what was owed from the proceeds of the sale with the remainder going to Ndokweni – but this did not happen.
The money is currently being held in the trust account of Ndokweni’s attorney.
In his papers, Ndokweni said he was involved in the daily running of the Spar while Galloway took control of Castlehill’s financial affairs.
He accused Galloway of mismanaging the finances, forcing him to sell the franchise to Spar.
“It later turned out that, behind my back, the first applicant (Galloway) had increased its (Castlehill) liabilities to an extent that impeded the further trading of the Spar.”
He said a forensic audit revealed that there was R2.4m which was unaccounted for but, he believed, that amount could be larger.
“I believe the counterclaim of the second respondent (Castlehill) and I could be much larger due to loss of profit, opportunity and income. I believe this sum will exceed the amounts that are being claimed by the applicants (Galloway and the companies).”
Ndokweni denied signing an agreement for Waykim to carry out work for Castlehill or that he verbally agreed to a similar arrangement with G and M.
He also denied that the companies had the authority to pay loans to Castlehill.
“I have made several requests to the first applicant (Galloway) to furnish details of the purported claims and he has not. Until such disclosures are made and a proper investigation is done, I dispute that the applicants have any claim against the second respondent (Castlehill).
Judge Peter Olsen granted an order adjourning the matter to the trial roll.
The Mercury