A multi-million rands house belonging to the son of President Cyril Ramaphosa will go under the hammer.
This after the Joburg high court granted Standard Bank an order to declare the property, which is situated in the leafy suburb of Edenburg, Sandton, executable following the businessman’s failure to repay over R1.8-million in loan debt, and the R10 000 credit card he obtained from the entity.
The order was granted to Standard Bank on October 17 after Andile Ramaphosa failed to oppose it.
The heart-rending news was confirmed by the bank’s legal representative, advocate Sbusiso Radebe.
“I can confirm that both matters (loan and credit card) were heard in separate court rooms in the Joburg high court, and both orders were granted. You can contact the attorney of the bank for further comment,” he said.
Standard Bank’s attorney Muzi Zwane, of MSZ Attorneys, could not be reached for comment at the time of going to print.
In the court papers, which we have seen, Standard Bank said it sought monetary judgment against Ramaphosa in respect of a written medium-term loan and a credit card he obtained from it but failed to service them.
Relating to the matter, Standard Bank said it had advanced a R1.8-million loan to Ramaphosa and he was supposed to pay it back in instalments of R17 500 over 120 months.
Ramaphosa, said the bank, had also obtained an additional R450 000 loan and hypothecated [pledged] his house as security.
He also took a credit card on August 21, 2012, which had R10, 000 in its account, and utilised the funds. Ramaphosa defaulted on the repayment of the loans and was over R217 000 in arrears.
He also defaulted on the repayment of the credit card and was over R4 700 in arrears.
On March 13 and 24 the bank’s lawyers sent him a letter of demand to settle the arrears. Ramaphosa acknowledged receipt of the letter of demand and proposed to pay R40 000 per month to settle the arrears on April 4 this year.
But the bank’s lawyers wrote back to him, stating that the monthly quantum he suggested was insufficient to remedy the arrears of the loan.
Ramaphosa turned a blind eye to the letter, prompting the lawyers to send another letter of demand to him on April 19, demanding the settlement of the arrears.
When he failed to remit payment, the bank asked the court to grant it an order to cancel the loan agreement.
It also asked for a judgment against Ramaphosa and an order to sell his house.
The bank said the market value for the property is over R1.9-million and its forced sale value is over R1.3-million.
It also said the property, whose municipal value is just under R2.4-million, owes the City of Joburg over R56 000 in unpaid rates and taxes.
“The applicant further seeks an order declaring section number 11 described on sectional plan in the scheme known as Sarbaz in respect of the land and building situated at portion 34 of Edenburg township in [the] Gauteng Province specially executable,” read the papers.
Ramaphosa failed to respond to the written questions we sent him.
