Numsa Investment Company acting CEO Osborn Mahanjana is dragged to court to be declared a delinquent director over allegations of financial misconduct, unauthorised payments and alleged misuse of company resources.
The application is brought by suspended NIC boss Khandani Msibi in the latest in a series of legal battles as the two battle for the corner office. Msibi accuses Mahanjana of allegedly using his position to benefit himself at the expense of companies linked to DGH Financial Services, Numsa Financial Services Health, and 3Sixty Health.
In the court documents, Msibi is requesting the court to declare Mahanjana a delinquent director for at least seven years under the Companies Act or alternatively place him under probation subject to conditions determined by the court.
The allegations involve the transfer of R1.5 million from a premium collection account, more than R1.1 million in insurance premiums for a personal luxury fleet, and nearly R1.9 million in personal travel and accommodation expenses allegedly charged to 3Sixty Health.
In total, the amounts identified in three allegations exceed R4.5 million.
“Taken together, the three grounds show a single course of conduct: a director who treats the money of the companies he serves, and in the first case money held for policyholders, as available to himself and to the shareholder interests he represents,” said Msibi in the founding affidavit.
He said Mahanjana instructed that a R1.5 million payment for a law firm be taken from DGH Financial Services’ premium collection account. The law firm represented a shareholder of the company’s holding company.
According to Msibi, the account was specifically established to collect premiums paid by policyholders and transfer the money to the insurer.
“The money in the premium account is policyholder money held for the insurer. It is not the money of DGH FS to spend, and no director or board of DGH FS has the power to apply it to any other purpose,” he states.
Msibi further alleges that Mahanjana had no authority to instruct the transfer and signed the payment instruction without the second authorised signatory required by the bank’s mandate.
The affidavit also alleges that Mahanjana presented himself as acting group chief executive officer despite not having been appointed to the position.
A second attempted transfer of another R1.5 million to NIC Invest was allegedly blocked by Absa Bank. Msibi claims the initial R1.5 million payment has not been returned.
Absa confirmed to Sunday World that they are aware of the dispute but refused to comment further in protection of banker client confidentiality.
“Due to considerations of banker-client confidentiality, we are unable to comment on the affairs of individual clients, their accounts, transactions, or in this instance, the dispute itself,” Absa said.
Another allegation relates to insurance premiums allegedly paid by NUMSA Financial Services Health for a fleet of luxury vehicles, including a Ferrari, three Porsche vehicles, an Audi R8, a BMW X7 and a Land Rover.
Msibi alleges that company funds were used to pay R1.2 million in comprehensive insurance premiums for the vehicles without board approval, contractual entitlement or an established company policy authorising the expenditure.
Sunday World previously reported that Numsa Financial Services Health has launched an investigation into Mahanjana over alleged unauthorised vehicle insurance benefits for a fleet of his luxury vehicles.
He also faces criminal charges against him over the matter. Police spokesperson Dimakatso Nevhuhuwili had confirmed that a fraud case was opened at Norwood police station and investigations are underway.
Msibi stated in the affidavit that he wrote to Mahanjana on July 15, 2026, requesting that he produce evidence of authorisation for the insurance payments. The applicant says no such evidence was provided.
The company subsequently demanded repayment of R1 164 315.88, but Msibi says no payment had been received when the application was filed.
The third allegation concerns 165 transactions totalling R1,866,410.11, which an audit allegedly identified as personal travel and accommodation expenses charged to 3Sixty Health between 2024 and 2026, but the money has not yet been paid.
According to Msibi, the expenses were personal in nature and had not been authorised by the company. Msibi says Mahanjana responded by questioning how the amounts had been determined and whether the company’s travel policy had been followed.
Msibi argues that the three incidents amount to a serious breach of the responsibilities attached to Mahanjana’s directorship.
In his assessment of the allegations, he states that the conduct involved the use of company funds without proper authority and caused financial harm to the businesses concerned.
“The facts on which I rely are established by the documents annexed to this affidavit, and section 162 requires proof on a balance of probabilities, not a criminal conviction,” he states.
Msibi is seeking a seven-year declaration, arguing that the alleged conduct is particularly serious because two of the companies are authorised financial services providers and the first allegation involves money collected from policyholders.
Mahanjana had not responded to questions by the time of publishing.
- Osborn Mahanjana, acting CEO of Numsa Investment Company, faces a court application by suspended NIC boss Khandani Msibi to be declared a delinquent director over allegations of financial misconduct and misuse of company resources.
- Msibi alleges Mahanjana authorised unauthorised payments including a R1.5 million transfer from a premium collection account to a law firm, over R1.1 million in luxury vehicle insurance premiums, and nearly R1.9 million in personal travel and accommodation expenses charged to company accounts.
- The premium collection account transfer allegedly lacked proper authorisation and violated the account's purpose of holding policyholder money exclusively for the insurer.
- Numsa Financial Services Health has launched an investigation into the alleged unauthorised vehicle insurance benefits and criminal charges are pending, with police confirming an ongoing fraud investigation.
- Msibi seeks a court declaration declaring Mahanjana a delinquent director for at least seven years or probation, citing serious breaches of fiduciary duties involving funds from authorised financial service providers and policyholder money.
