Former deputy minister of trade and industry and Ekurhuleni mayor Mzwandile Masina has been dragged to court by one of the top banks in South Africa after failing to pay back more than R63,000 he used from its credit facility.
Investec filed an application for judgment against Masina with the Johannesburg High Court last week after the politician ignored several letters from the bank’s law firm, Ismail and Dahya Attorneys, to settle the account.
In the court papers, which we have seen, the lawyers stated that on or about July 2006, Masina, a member of the ANC’s national executive committee, applied for an Investec private bank account (PBA).
The bank approved the account and provided a credit facility.
The lawyers explained that the bank would deliver the cards to Masina for use from time to time, with the last card being delivered on October 13 last year.
“Upon receipt of the card, the defendant duly accepted the terms and conditions applicable to the private bank account.
“The plaintiff determined, based on, inter alia, the representations made to it by the
defendant that the plaintiff could afford the credit facility granted to the defendant,” read the papers.
The lawyers stated further in the papers that Masina undertook not to effect transactions in excess of the credit limit and/or the guaranteed account credit limit and/or the spending limit.
He also agreed, they stated, that the bank would have the right to refuse to make any
payment or process a transaction if any such limit had been exceeded or if Masina had
defaulted on his account agreement.
Despite his commitment to pay the account on time, Masina breached the terms and conditions of the agreement when he defaulted on his payments.
“The defendant breached the terms and conditions of the PBA agreement as he failed to make payment of the minimum amounts that were due to be paid to the plaintiff in terms of the PBA agreement,” read the papers.
Additionally, he did not address the breach within the stipulated timeframe in a
written notice.
The lawyers sent Masina a letter on or around June 6, 2024, informing him that the credit limit would drop to R1 because the account was in default and he hadn’t paid the arrears.
“The defendant did not respond to the notice in terms of Section 129(1) of the National Credit Act, nor did the defendant respond to the said notice by rejecting the plaintiff’s proposals set out therein,” read the papers.
The lawyers stated that notwithstanding receipt of the notification, Masina has failed to make payment of the full amount outstanding within 10 business days or refer the
matter to a debt counsellor, alternative dispute resolution agent, consumer court, or ombud with jurisdiction to resolve the dispute under the agreement or to develop and agree to a plan to bring the payments under the agreement up to date.
“The defendant has failed and/or refused and/or neglected to make payment of the full outstanding balance on the PBA.
“The defendant has not objected to the quantum of the arrears or outstanding balance, either informally or formally in writing.
“Notwithstanding due demand, the defendant has failed and/or refused and/or neglected to pay the amount of R 63,018.25 in terms of the PBA,” read the papers. “In the circumstances, the plaintiff is entitled to payment of all amounts payable in terms of the PBA agreement, which amounts are now immediately due and payable.
Wherefore the plaintiff prays for judgement against the defendant.”Masina said he was not aware of the legal action taken against him.
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