Standard Bank has dragged to the high court President Cyril Ramaphosa’s eldest child Andile for non-payment. The president’s son now risks having his luxury saloon dispossessed. He could also be kicked out of his posh house in Joburg.
Andile, who admitted to having received R2-million from Bosasa, a company accused of corruption, was last week hauled to the Joburg High Court by the banking giant after he failed to keep up with monthly instalments for the BMW 650i.
The lender, the country’s biggest bank by assets, also wants to attach and auction off Andile’s Edenburg mansion, which he used as surety for an R1.8-million loan he obtained about seven years ago.
In the court papers that we have seen, Standard Bank’s Dudzai Mungani said Andile and the bank had entered into a medium-term loan agreement in which the bank advanced R1.8-million to him.
Andile agreed to repay the loan in monthly instalments of R15 000 for a period of 120 months (10 years). He used his luxury property as surety for the loan and gave permission to the lender to sell it if he failed to repay the loan in full.
The president’s son, Mungani said, had breached the agreement when he defaulted on his monthly instalments. Because of his tardiness, added Mungani, the bank has cancelled the loan agreement and demanded that he settle the outstanding balance in full.
“In breach of the medium-term loan agreement, the respondent failed to make payment of the instalments due and as of 12 October 2021, the respondent was accordingly indebted to the applicant in the amount of R1 491 452.98,” read the papers in part.
The banking group is praying for an order to attach and auction the property off in an attempt to recoup the money owed.
“The respondent may prevent the property declared from being executable by settling all outstanding amounts owed to the applicant.”
Ramaphosa’s financial woes do not end there.
The flamboyant businessman, whose father donated more than R5-million to the ANC to pay staff salaries last year, also obtained a loan of close to R1-million from the bank after signing a vehicle asset finance agreement to buy a luxury BMW 650i.
Andile agreed to pay instalments of more than R13 400 per month for 72 months, but defaulted. He is now in arrears amounting to over R86 000, according to court papers.
“In breach of VAF [the vehicle asset finance] agreement, the respondent failed to make payment of the instalments due, and as of 12 October 2021 the respondent was accordingly indebted to the applicant in the amount of R86 568 together with interests,” read the papers.
The court papers also state that the bank’s lawyers had terminated the VAF agreement on February 10 last year and demanded that Andile surrender the vehicle. On August 1 last year, Andile entered into a settlement agreement with the lender undertaking to pay R23 000 by August 15.
He also committed to pay R18 000 twice between September and October last year and R17 000 before November 1.
But the businessman allegedly failed to honour his promise. This left Standard Bank with no other option but to ask for the high court to grant it an order to repossess the vehicle.
“The applicant seeks an order for the repossession of the vehicle. As set out above, the vehicle remains the property of the applicant until the respondent has paid all amounts due in terms of the VAF agreement,” read the papers.
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