Prolific television producer Thabo Mphelo and his film company have been dragged to court after failing to repay a more than R33-million loan they obtained from the National Empowerment Fund (NEF).
Mphelo and his film company, Thabo Mphelo Films, which produced, among other popular shows, Daily Thetha and Ushuni Womhlababa, which aired on SABC 1, were taken to the Johannesburg High Court by the NEF last week after they repeatedly ignored letters of demand from the state-owned entity to pay back the loan.
In the court papers that we have seen, NEF said between September 23 and October 2021, it entered into a “senior loan facility agreement and a suspensive sale facility agreement” with Mphelo and his company.
In terms of the agreement, the NEF advanced more than R24 million as a senior loan facility to the company.
Mphelo used his two Joburg properties as security against the loan. Mphelo used, as part of the agreement, a certain portion of the loan to renovate one of the two properties before transferring them in the name of the NEF.
The NEF later transferred more than R21-million into the coffers of Thabo Mphelo Films.
The firm was obligated to repay the capital amount with interest in 117 monthly installments until the facility was paid in full.
But Mphelo, who is the second respondent, and his firm, which is the first respondent, breached the agreement when they defaulted on the loan’s repayment.
“The first defendant is in breach of the senior loan facility agreement and the mortgage bond in that it has failed to pay the amounts due in terms of the senior loan facility agreement.
“Payments received from the first defendant in terms of the senior loan facility agreement have been sporadic and have not been made in accordance with the repayment terms in accordance with the senior loan facility agreement, and as such the first defendant has breached the senior loan facility agreement due to being in default of its obligations under the senior loan facility agreement,” the court papers read.
“As of April 30, 2025, the arrears amount owing by the first defendant to the plaintiff under the senior loan facility agreement was the amount of R5 886 764.74 (five million, eight hundred and eighty-six one thousand seven hundred and sixty-four rand and seventy-four cents.”
On June 30, the NEF said it addressed a letter of demand to Mphelo and his entity to remedy the breach by making payment for the arrears and all overdue amounts within 10 days.
It threatened to cancel the agreement and recover from the firm the full outstanding balance and the legal costs it would have incurred.
“At least 10 business days have lapsed since the letter of demand was sent to the first defendant. The first defendant failed to remedy the breach under the senior loan facility.
“As of 17 July 2025, the first defendant was still indebted to the plaintiff under the senior loan facility agreement in the amount of R28 747 023.06 (twenty-eight million, seven hundred and forty-seven thousand and twenty-three rands).”
The NEF further said in terms of the suspensive sale facility agreement, it advanced an R8.7 m loan to purchase studio equipment for Mphelo’s production house.
The entity was required to repay the loan in monthly installments for 48 months but defaulted.
“As of 30 April 2025, the arrear amount owing by the first defendant to the plaintiff under the suspensive sale facility agreement is in the amount of R5 675 988.29 (five million, six hundred and seventy-five one thousand nine hundred and eighty-eight rand and twenty-nine cents).
“As of 31 March 2025, the first defendant was indebted to the plaintiff under the suspensive sale facility agreement in the amount of R9 139 056.12 (nine million, one hundred and thirty-nine thousand and fifty-six rand and twelve cents).” read
the papers.
The NEF said it wrote a letter of demand to the company and asked that it pay the arrears but received no response.
The NEF said it is now praying for judgement against Mphelo and his firm and for an order to auction off his Joburg properties.
