A prominent business rescue practitioner is facing mounting legal pressure, with creditors pushing for her company’s liquidation and her own personal sequestration over an unpaid R8-million debt.
Lebogang Mpakati, a business rescue practitioner and director of Indalo Business Consulting, who has been involved in several high-profile matters, including a recent role as curator of the troubled Sizwe Hosmed Medical Scheme, is facing more financial and legal woes following an application in the high court for liquidation over a disputed R2.6-million payment.
Mpakati’s work as curator of Sizwe Hosmed Medical Scheme was halted earlier this year after the scheme’s board of trustees approached the High Court in Pretoria to challenge her suitability over an alleged failure to declare she was insolvent and had been placed under sequestration by a court.
It was also argued that during her time as curator, R7.6 million was spent on legal representation between September and mid-January. Further concerns were raised over two payments of R1-million and R1.2-million linked to seven invoices processed on the very same day.
Mpakati and her business rescue business Indalo Business Consulting have now been taken to court by F&R Catai Transport Solutions, a company in the automotive sector, which is seeking final liquidation, demanding repayment of R2.6-million. The application is supported by another creditor, Seratime, which has a further claim of about R5.6-million against Mpakati and her company. Both companies are under liquidation.
They argue that, taken together, these claims demonstrate that Indalo and Mpakati are unable to meet their obligations and should be placed under final liquidation and sequestration, respectively. They are also coming after her properties.
In addition to the named creditors, the court papers show other financial obligations, including a bond held by Nedbank over one of Mpakati’s properties, as well as outstanding legal costs, interest and potential claims from other parties.
For Mpakati, the sequestration application centres on claims that she is personally insolvent and that her estate should be placed under the control of a trustee. The applicants argue this would allow assets, including two immovable properties, to be secured for the benefit of creditors.
According to the court documents, Mpakati owns two properties that could be used to repay creditors, including one in Zimbali Lakes in KwaZulu-Natal valued at R2.3-million and another in Edenburg valued at R3.8-million, although the latter has a bond of about R2.2-million owed to Nedbank.
“That leaves approximately just over R1.5-million in equity in the Edenburg property to the advantage of the creditors if sold at municipal value. That amount is insufficient to immediately pay all the creditors such as Nedbank, Seratime, the Applicants and the other entities from which Mpakati loaned funds to make the payments after provisional sequestration.
“The applicants submit that once the (applicants) start digging, more assets are likely to be unearthed to the advantage of the creditors. It is accordingly submitted that there is a reasonable belief that the sequestration will be to the advantage of creditors and that the estate of Mpakati should be sequestrated,” reads the court documents.
Her financial troubles stem from a previous matter in which she was ordered to repay R2.3-million to F&R Catai Transport Solutions after an overcharge linked to a R3.6-million payment she received while acting as a business rescuer through Indalo.
In an urgent application filed in February, Mpakati had asked the court to discharge the provisional order, arguing that she had paid large sums towards the debt and that there was no longer any reason for the sequestration to remain in place.
The court found that the payments fell short of full settlement, with interest and legal costs still outstanding. The judge also emphasised that payments made under an unaccepted compromise could not end the debt or undo the insolvency process.
It was also found that Mpakati failed to notify all creditors of her application as it is considered important once a provincial sequestration order is granted to protect the interests of all creditors involved.
In this recent application, the companies argue that payments made after provisional liquidation and sequestration orders were granted in December 2025 do not extinguish the debt. According to the filing, any funds paid after that point fall into the insolvent estate and must be
distributed fairly among all creditors.
“Between 16 January 2026 and 4 February 2026, a total amount of R2 341 311.85 was paid into the trust account of the Applicants’ attorney after Indalo and its sole member, Mpakati, were both provisionally wound-up and provisionally sequestrated.
“These payments were accordingly made more than a month after Indalo and Mpakati were already declared provisionally insolvent. Such payments are accordingly void,” reads the court papers.
They further argue that allowing selective repayment would undermine the principle that all creditors must be treated equally once insolvency proceedings begin.
Since the sheriffs were reportedly unable to attach sufficient property to satisfy the debts, the applicants say Indalo has not provided adequate financial records to demonstrate that it is solvent.
“Having regard to the aforesaid set of facts, we submit that the jurisdictional requirements for a final sequestration order are satisfied.
“It is imperative that Mpakati be placed under final sequestration, in order for the trustees of the estate to secure and take control of the assets of the estate and ensure payment to the creditors,” reads the document.
Speaking through a spokesperson, Mpakati said: “We have filed papers for the rescission of the sequestration, and the matter is scheduled to be heard in court on May 11.”
- A prominent business rescue practitioner is facing mounting legal pressure, with creditors pushing for her company’s liquidation and her own personal sequestration over an unpaid R8-million debt.
- Lebogang Mpakati, a business rescue practitioner and director of Indalo Business Consulting, who has been involved in several high-profile matters, including a recent role as curator of the troubled Sizwe Hosmed Medical Scheme, is facing more financial and legal woes following an application in the high court for liquidation over a disputed R2.6-million payment.
- Mpakati’s work as curator of Sizwe Hosmed Medical Scheme was halted earlier this year after the scheme’s board of trustees approached the High Court in Pretoria to challenge her suitability over an alleged failure to declare she was insolvent and had been placed under sequestration by a court.
- It was also argued that during her time as curator, R7.6 million was spent on legal representation between September and mid-January.
- Further concerns were raised over two payments of R1-million and R1.2-million linked to seven invoices processed on the very same day.
