The Johannesburg High Court has granted a default judgment against Qomkufa Security Company, ordering the company to pay Transasia 1, an international company co-owned by ANC stalwart Mathews Phosa and mining magnate Luda Roytblat, a staggering R119.25-million.
The ruling in favour of Transasia 1, represented by Adv Kennedy Tsatsawane SC and Sandton-based DMS Attorneys, also includes interest at 11.75% from the date of summons to the date of payment.
The case, heard before Judge Allyson Crutchfield on Thursday, involves Transasia 1 suing three defendants, including Caterpillar Financial Services SA and the Sheriff of the High Court in Dundee and KwaZulu-Natal, after an excavator was taken from Phosa’s mine, which led to a civil dispute and a separate robbery case.
While the liability of the other defendants is yet to be determined, the court ruled that Qomkufa Security Company is jointly and severally liable for the amount, with the one paying absolving the others. In addition to the quantum amount, the court ordered Qomkufa Security Company to cover the plaintiff’s legal costs on a scale.
The case has been enrolled for default judgment against Qomkufa Security Company, the third respondent, which failed to file a plea despite being served with a notice of bar. Meanwhile, the first and second respondents have filed their pleas, and the matter is now at the discovery stage.
Phosa’s claim arises from the alleged unlawful removal of a Caterpillar large excavator from the company’s mining site, which the plaintiff argued had caused significant financial losses.
In an affidavit submitted to the court, Phosa detailed the events leading to the claim. According to him, the removal of the excavator on June 25, 2024, disrupted the company’s ability to fulfil a lucrative coal supply agreement with Qingdao Neogen Saftin International Trade, a Chinese buyer.
The agreement, signed earlier in June 2024, required Transasia 1 to supply 15 000 tonnes of anthracite coal per month for a three-month trial period.
“The removal of the Caterpillar excavator resulted in the plaintiff being unable to fulfil its contractual obligations to the buyer,” Phosa stated in the affidavit. This led to the cancellation of the coal supply agreement on July 20, 2024.
To quantify the damages, Transasia engaged WDT Accounts, professional accountants and tax practitioners, who calculated the financial impact of the contract’s cancellation.
According to their report, the company stood to earn R162-million in revenue over the three-month period, with monthly costs of R14.25-million for mine extraction and logistics.
The net income lost due to the cancellation was determined to be R119.25-million.
“The fair and reasonable value of the damages suffered by the plaintiff, as confirmed by an expert, is the sum of R119 250 000,” Phosa stated.
The affidavit revealed that the coal supply agreement initially required Transasia to deliver 50 000 tonnes of coal per month.
However, due to the company’s recent commencement of mining operations, an addendum was signed on June 15, 2024, reducing the monthly supply to 15 000 tonnes for the trial period. Despite this adjustment, the removal of the excavator made it impossible for the company to meet even the reduced production targets.
The financial breakdown provided in the affidavit highlights the scale of the losses incurred. The revenue per sellable metric tonne of coal was valued at $185 (about R3 600), amounting to R54-million per month and R162-million over three months.
The mine extraction costs were calculated at $26.36 (R513) per tonne, totalling R7.695-million per month and R23.085-million over three months. Logistics costs from the gate to the vessel were estimated at $22.46 (R437) per tonne, amounting to R6.555-million per month and R19.665-million over three months.
After deducting these costs, the gross profit for the three-months was determined to be R119.25-million.
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