A Joburg company is moving to sequestrate the estate of financially embattled Kaizer Chiefs team manager Bobby Motaung and also attach for the second time his shares at Amakhosi for failing to pay it more than R4.5-million.
Pent Up Investment cc has filed papers in the Johannesburg High Court in which it seeks an order to sequestrate Motaung’s estate in the Master of the High Court in Joburg.
In his founding affidavit, Pent Up Investment boss Costas Couremetis, sates that the company, represented at the time by his son, Christopher, who has since passed away in October 2010, concluded a sale agreement for Motaung to purchase a commercial property in Mondeor, southern Joburg for R9-million.
The complex, which is located next to Gold Reef City, comprises a commercial building and a petrol station, and was supposed to be registered under Motaung’s incorporation called Lakeshore Trading 224. At the time, said Couremetis, his son was a sole director of Pent Up Investment and Motaung was the sole director of Lakeshore Trading.
He said Motaung failed to pay the full amount for the property after concluding the sale agreement.
“Pursuant to a failure by Lakeshore to make payment of the purchase price for the property in full, the applicant instituted proceedings in the above honourable court and obtained judgment on or about
November 12, 2009 in a sum exceeding R9-million, plus interest and legal costs,” he stated in the papers.
After the judgment was granted, said Couremetis, there have been many meetings over a period spanning more than 14 years, held with Motaung and his attorney, Nazeer Saley, aimed at resolving the dispute. He said Motaung remitted several payments to Pent Up Investment in a bid to reduce the debt.
Pent Up Investment placed Lakeshore in final liquidation but after several negotiations, a settlement agreement, which was made an order of court, was reached by both parties.
But despite reaching the agreement, Motaung failed to make further payments. Couremetis said the total amount paid by Motaung so far is R6-million.
“The indebtedness as it currently stands at the end of January 2024 is in the sum of over R4.3-million.
“In fairness to the respondent, he has not sought to dispute the indebtedness since the judgment was granted against him. However, he has clearly not been able to pay the full sum, as and when it was due, even after having been given various reasonable and generous indulgences over many years,” he wrote.
Couremetis said Motaung has, despite failing to settle the debt, lived a lavish lifestyle.
“The respondent has over all of these years lived a very opulent lifestyle, driving a Bentley motor vehicle; owning and living in a large immovable property in a very prestigious area, namely Houghton; wearing very expensive clothing and different, very expensive watches at our various meetings and generally portraying the image of a very successful businessman, who is extremely well off; and who occupies a considerable position in the eyes of society, throughout South Africa, by virtue of the prominent position which he occupies at Kaizer Chiefs Football Club,” he said.
Couremetis said Motaung has committed an act of insolvency with his failure to settle the debt.
“Put simply, it appears that the respondent is gainfully employed, with substantial income and many valuable assets, yet he fails to settle the admitted sum due to the applicant,” he said.
Couremetis said Motaung always told him that the reason he did not settle the debt for these many years was because he has other creditors to service.
“If sequestrated, the respondent will no longer be able to prefer other creditors over the applicant, as he has done for some 14 years to date.
“Accordingly, I verily believe that the debt owing to the applicant is not the only debt which the respondent has, resulting in his playing creditors off against each other, so as to ‘play for time’ in regard to his debts.
“Put differently, the respondent has liquidity problems, yet owns substantial assets, which a trustee would be able to liquidate so as to realise funds to pay the respondent’s debts, which his allocation of cashflows appear not to be allowing for to date,” Couremetis stated.
He said Motaung’s liquidity problems are caused by the extravagant lifestyle he leads.
“I have no doubt, having said the above, that the respondent’s debts are actually exceeded by the value of his assets. I believe that his problem is merely in respect of cashflow and a lack of liquidity caused also by his extravagant lifestyle, coupled with his picking and choosing which debt he will settle from time to time.
“In this regard, by way of example, the respondent’s shares and claims in and to Kaizer Holdings (Pty) Ltd, which I believe to be the owner of the world famous Kaizer Chiefs Football Club, which employs him as well, were attached at the applicant’s behest in and during August 2010.
“Further execution was not, however, proceeded with at the time due to payments made and settlement talks conducted, which culminated in the settlement agreement being concluded.” A trustee, further said Couremetis, should be appointed to investigate the values of the various interests which Motaung has in those entities.
Although the case was placed on the roll this week, Motaung claims the matter is old news because it was resolved long time ago. Pressed for comment on Motaung’s claims, Couremetis said he did not want to be involved and referred us to his lawyer, Claudio Bollo, who could not be reached for comment at the time of going to print.
