ANC stalwart and businessman Mathews Phosa and Australia-based mining magnate Luda Roytblat have forced one of Africa’s largest law firms, ENSafrica, to settle a legal bill exceeding R500 000 after launching a legal offensive to have one of its top lawyers declared insolvent.
The firm complied with the demand on Monday, about a week after a sharply worded legal letter threatened to sequestrate its lawyer, Senzo Mbatha.
The debt arose from a taxed bill of costs—a court-approved statement of legal expenses—totalling R535 155.30, linked to an appeal that Mbatha had filed and later withdrew in a separate matter.
The initial letter of demand, from TTS Attorneys dated November 17, had given Mbatha a mere 24 hours to pay the full amount on behalf of their clients, Transasia Minerals SA (Pty) Ltd and Transasia 444 (Pty) Ltd. The companies are linked to Phosa and Roytblat.
Threat of sequestration proceedings
The consequence of non-payment had been laid out in unequivocal terms: “We are instructed to hereby demand payment of the taxed amount within 24 hours of receipt of this letter; failure to do so will result in our clients proceeding to take necessary steps to recover the taxed bill amounts, including bringing sequestration proceedings against you.”
A sequestration order, the South African equivalent of bankruptcy, would have been a severe blow to Mbatha’s personal and professional standing, potentially disqualifying him from holding directorships.
The involvement of ENSafrica proved to be the critical factor.
The firm had previously provided a guarantee to cover Mbatha’s legal costs in the underlying litigation with the Transasia owners, up to a limit of R250 000, according to court documents.
However, with the new, higher-taxed bill presented, the plaintiffs’ attorneys demanded the firm make good on its commitment as the financial backstop.
Faced with the imminent threat of sequestration proceedings against its lawyer, ENSafrica moved to settle the debt in full on Monday, thereby shielding Mbatha from the severe personal and financial repercussions.
Weight of a final ultimatum
The legal letter, signed by TTS Attorneys director Thomas Sibuyi, had been meticulously formal yet carried the weight of a final ultimatum, instructing that the “demanded amount herein must be paid into our trust account”.
Phosa is a heavyweight within the ruling ANC, a former premier of Mpumalanga, and a seasoned lawyer.
His partner, Roytblat, represents significant international capital invested in South Africa’s mining sector.
On Friday, the head of dispute resolution at ENSafrica, Julia Ferraz-Cardoso, had requested more clarity to respond to a media enquiry but had not provided feedback at the time.
Ferraz-Cardoso had clarified then that there was no cost order against ENSafrica itself. Mbatha did not respond to questions sent to him.
