Sequestration looms for Khulubuse Zuma

Khulubuse Zuma has been threatened with sequestration.

Khulubuse Zuma has been threatened with sequestration.

Published Dec 31, 2017

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DURBAN - PRESIDENT Jacob Zuma’s controversial nephew, Khulubuse, could have his estate placed under sequestration over a R1.5billion debt as liquidators continue to hunt for his assets over the Aurora Mine saga.

Liquidators of the Pamodzi Group of Companies have approached the Durban High Court seeking a sequestration order.

The move comes after Zuma allegedly failed to honour the payment agreement and hid some assets when the agreement was signed last year.

In 2009, Zuma’s Aurora company made an offer to buy two mines from the embattled Pamodzi Group for R215m and R390m, but the payments were never made and the sale agreement was eventually cancelled in May 2011.

“Pursuant to Aurora having taken control of the mentioned mines Aurora, in essence caused a massive stripping of the mines and their assets as well as the appropriation of gold produce,” said liquidator Johan Engelbrecht in his

affidavit.

Because of financial challenges Aurora was also liquidated in October 2011 and in 2015 the Supreme Court of Appeal ruled that Zuma was personally liable for its debts, which included the R1.5bn for damages suffered by the Pamodzi Group.

Engelebrecht said last year Zuma undertook to pay R23m, with an initial payment of R5m then monthly instalments of R500000 but started defaulting in June this year.

Part of the agreement was that the liquidators would only waive the prosecution and execution if Zuma also made a detailed disclosure of his assets and liabilities.

Therefore, Zuma then furnished the liquidators a sworn affidavit. In this, he disclosed ownership of a house in uMhlanga and a Range Rover worth R200000, but said he did not have any funds or assets abroad.

His debts included R9.9m to the Protea Coin Group, R1.6m to Kapital Minez Consultancy and R2.5m to Strauss Daly Incorporated.

Zuma is known for his expensive and flashy lifestyle but Engelbrecht said some things did not add up and that an investigation into his sources of income needed to be done as he obviously failed to declare everything in his affidavit.

The Panama Papers, which were released by the International Consortium of Investigative Journalists last year, revealed that Zuma owned an oil fortune worth more than R100bn in the Democratic Republic of Congo but that was also not in his affidavit.

Further allegations included that he held directorship in 34 companies and owned 19 collectable cars.

“If the estate of the respondent (Zuma) is sequestrated, the trustees of his estate would be empowered to take control of all of his assets, inclusive of all records kept, inclusive of e-mail and other correspondence in order to come to an understanding of the extent of the respondent’s business activities and his assets and liabilities,” said Engelbrecht.

The matter was scheduled for hearing on December 8 but was removed from the roll when neither the applicants nor the respondent came to court. Zuma could not be reached for comment. 

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SUNDAY TRIBUNE

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