MaXhosa fashion brand founder Laduma Ngxokolo is demanding his R1.3-million from the new owners of the popular Pyramid building in downtown Joburg or the cancellation of its sale agreement.
The building was bought by a Joburg company called KM3 Investments in a deal with Ngxokolo, after he had successfully bid to buy it at an auction about two years ago.
In the papers which he filed in the Joburg High Court last week, Ngxokolo said he and Vegtu Investments, the seller of the building, entered into a written agreement to purchase the property, which is in City Deep, Johannesburg, on April 22, 2021.
This after Vegtu Investments, he said, mandated Auction Central to sell the property by public auction or private treaty.
He said he made an offer to purchase the property on April 22, 2021, to Auction Central for a whopping R13-million excluding VAT.
In terms of the agreement, he said, he was expected to pay R1 950 00 into Auction Central’s Trust account.
The R1 950 000 comprised a 10% deposit of R1.3-million to the seller and R650 000 fee to conveyancers.
He said he complied with the agreement and paid the funds in two payments of R975 000 from the account of his business named Sjugaz Fashion and Textiles.
Auction Central then paid the R650 000 into the conveyancer’s trust account.
On June 25, 2021, he received a three-way call from a businessman Phetolo Makoro of KM3 Investments and Vegtu Investment’s representative Kampel Kauffman, care of one Jenna Friedman.
Makoro, he said, intimated his intention to buy the property, shared his vision for it and pleaded with him not to proceed with the agreement of sale.
When he acceded to Makoro’s request, they agreed that the R1 950 000 he had already paid would be allocated to him (Makoro) in his new sale agreement with Vegtu Investments.
He said Makoro undertook to reimburse him the R195 000 by November 10, 2021, and pay the outstanding balance to Vegtu investments.
On July 2, 2021, he said Makoro confirmed in writing that the deposit would be paid and confirmed this again via email on July 9 and October.
On November 18, 2021, he said Makoro paid him only R650 000, which he paid to the conveyancing attorneys but failed to pay him the R1.3-million.
This despite Makoro receiving confirmation that the property was transferred and registered to his company KM3 Investment in June that year.
“On 26 August 2022, Mr Ngxokolo, through his erstwhile attorney, Sondeza Nyiko Inc, transmitted a letter of demand to Mr Makoro and KM3 Investments, who failed, alternatively refused, and or neglected to respond to the letter of demand. In breach of the agreement as aforesaid, and despite demand, Mr Makoro and KM3 Investment have failed, alternatively refused, and or neglected to pay the bidders’ premium amount to Mr Ngxokolo.
“Wherefore plaintiff prays for judgement against the first and second defendants (Makoro and KM3), jointly and severally, the one paying the other to be absolved for payment of
R1.3-million. In the alternative to 1 above, cancellation of the second agreement and damages in the amount of R1.3-million,” read the papers.
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