Johannesburg – Patriotic Alliance president Gayton Mckenzie is set to be unelected from his house by one of the major banks after his company failed to service a loan.
Sunday World can reveal that Mckenzie and his company, XConcepts Publications, were dragged to the Joburg High Court by Nedbank last week after the company failed to repay over R700 000 outstanding balance of a R1.2-million loan.
The bank wants the court to give it an order to attach and sell Mckenzie’s R1.6-million Joburg house and use the proceeds to offset the debt.
According to court papers, which Sunday World has seen, XConcepts Publications obtained a R1.2-million loan from Nedbank in September 2008.
Mckenzie, a businessman and motivational speaker, signed an agreement on June 6, 2008 undertaking to be surety for the loan and used his R1.6-million Randpark Ridge property as a covering mortgage bond.
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The loan amount was, according to the terms and conditions, expected to be repaid in monthly instalments of about R14 000 over 240 months from September 1, 2008. Mckenzie’s company failed to comply with the terms and conditions of the loan agreement by failing to keep up with the monthly instalments and as result was just under R37 000 in arrears as of March 9 this year.
The bank stated that on March 9, it wrote letters, which were delivered to Mckenzie’s address four times that month, asking him to settle the arrears.
“The defendants failed to respond to the respective notices, alternatively no arrangement or proposals were made or reached as contemplated under section 130(1)(b) of the Act,” read the papers.
The bank is now pleading with the court to grant it an execution order to attach and auction the property to recoup its money.
“The amount owed by the defendants is substantial and the property is the only tangible security held for the payment thereof and consequently the plaintiff will be prejudiced if it cannot recover a portion of the amount due by executing against the property.
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“Wherefore the plaintiff prays for judgment against the first and the second defendants jointly and severally, the one paying the other to be absolved; an order declaring the following property especially executable; an order authorising the issuing of a warrant of execution in respect of the property mentioned; the court to make a determination on whether a reserve price is to be set and to accordingly set a reserve price,” reads the papers.
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