[miningmx.com] — BANKING group Absa has applied for the final liquidation of Tshozi Investments, owned by controversial businessman Sandile Majali, the firm’s legal head said on Thursday.
“Absa was in court (on Wednesday), applying for the final liquidation of Tshozi Investments Pty Ltd,” Marthinus van Rensburg said in a statement.
“Tshozi stood surety for a loan that Absa made to Imvume Resources Pty Ltd. Imvume was voluntarily liquidated by its shareholder, Sandile Majali, and Absa is entitled to recover its loan from the surety company. The court reserved judgment.”
The application was made in the High Court in Johannesburg.
Imvume Resources was the company central to the so-called Oilgate scandal. Imvume obtained tenders from state-controlled PetroSA in 2004, but redirected the taxpayer’s money to the ruling African National Congress for its election campaign.
PetroSA paid Imvume Management an R18m advance in early 2004 to buy feedstock condensate for the parastatal. However, Imvume donated R11m of the money to the ANC.
In October 2006, PetroSA started attaching the assets of Imvume to recover the debt incurred in the Oilgate affair.
At the time, PetroSA chief executive Sipho Mkhize said Imvume initially paid off the debt, but it started defaulting on payments in August 2006.
Some R3m was still owed to PetroSA then, causing it to instruct its lawyers to execute an agreement to attach Imvume Resources’ assets.
Last month, Sake24 reported that Imvume had since then found itself in further financial difficulties, and Majali had been accused of trying to recapitalise it with other people’s money.
Last year, he was taken to court by the Financial Services Board and accused of using a life insurer, New Era Life, as a private asset for Imvume’s benefit.
New Era declared an unwarranted R47m dividend, but the Limpopo Development Company – which held a five percent stake – had not received any of the money.
According to Sake24, Majali also offered New Era’s principal assets to Absa as security for an overdraft facility intended for Imvume.
Majali was in court this week for another case related to the alleged hijacking of mining company Kalahari Resources. He faces a fraud charge following allegations the company’s directorship was changed to include him and seven others.
Kalahari Resources owns a 40% stake in Kalagadi Manganese, the mining company developing an R11bn manganese mine and sinter plant in the Northern Cape, as well as a smelter at Coega.
The Industrial Development Corporation owns 10% of Kalagadi Manganese, while steel producer ArcelorMittal owns the remaining 50% stake.
Tshozi owns 85% of Siyanda Mining Company (SMC) and SMC in turn owns 8.33% of Kalahari Resources.
