VBS liquidator Anooshkumar Rooplal is turning up the heat on Ralliom Razwinane, one of the men on trial for his purported involvement in the mutual bank’s collapse, following court action this week to recoup a portion of his R11.5-million debt to creditors.
Rooplal is seeking a court order in the Joburg High Court to seize and sell Razwinane and his wife’s home in Johannesburg’s affluent suburb, arguing that their income and ability to rent a more affordable place will not compromise their right to adequate housing. The court documents cite Razwinane’s wife, Mpeleng Grace Razwinane, as a second respondent.
In his founding affidavit, written on behalf of Rooplal, Shaun Havenga, the VBS collections manager, says there is no monetary relief sought against Mpeleng, and she is only cited in the application because she resides on the property that is the subject of the court action.
According to the papers filed before the Johannesburg High Court, Razwinane owes VBS R9.7-million under a mortgage agreement and a further R1.7-million under a vehicle
finance agreement, adding up to a total of R11.5-million.
The court heard that the property’s market value was assessed, and a Harcourts report valued it between R7-million and R8-million with a recommended price of R7.5-million.
Havenga argued that selling the property at a public auction, even at a lower price, was the only way to cover a significant portion of the debt to VBS, the municipality and others.
He also pleaded with the court not to set a reserve price, saying it might deter higher bids, potentially disadvantaging Razwinane as he remains liable for the shortfall. But if necessary, he proposed R3.5-million, factoring in auction costs, the property’s condition and market dynamics.
“The proportionality of the prejudice that the VBS creditors would suffer [should this court refuse to grant execution against the property] far exceeds the prejudice Mr and Mrs Razwinane would suffer. The property is an expensive one. I am attempting to recover debts to benefit the creditors of VBS Mutual Bank, many of whom are pensioners and mutual funds,” Havenga told the high court.
“I have no ulterior motives in approaching this court for the orders as set out in the notice of motion. I merely wish to secure a judgment for the debt owed by Mr Razwinane [and to lay claim to its security, which was secured for this exact debt in question].”
According to Havenga, Razwinane’s total debt to VBS is approximately R11.5-million excluding interest and legal costs. Negotiations for a workable repayment plan have failed, and the arrears on both the mortgage credit agreement and vehicle finance agreement have persisted. He added that given Razwinane’s alleged involvement in fraudulent activities that led to the liquidation of VBS, it is unlikely he will repay the arrears without selling the property.
“Mr Razwinane agreed to repay the mortgage credit agreement with interest thereon in monthly instalments of R53 247.45. The last payment received by the applicant in respect of the mortgage credit agreement was an amount of R40 149.30 on 11 January 2023. Thereafter, no payments have been received from Mr Razwinane,” the court heard.
In February 2017, VBS and Razwinane concluded a mortgage credit agreement under which the bank agreed to lend and advance R5.4-million to him to purchase the property, which would serve as security for the repayment of the mortgage capital amount and other outstanding incidental amounts owing and payable to it.
Razwinane acknowledged and committed to repaying the mortgage capital amount, along with incidental costs and interest accrued over 360 months, in equal instalments of R53 247.45 per months.
In the vehicle finance agreement concluded in June 2017 to purchase a Mercedes Benz for R1.180-million, Razwinane agreed to pay interest at 12.5%, with monthly instalments of R23 760.38 over 72 months.
In November 2020, Razwinane consulted Freedom Debt Counsellors, resulting in a debt re-arrangement proposal that VBS accepted. However, Razwinane’s non-cooperation allegedly led to the termination of the review in February 2022.
Havenga told the court that they need to sell his house, “bearing in mind that the outstanding amounts are substantial, the attachment and selling of the household furniture and effects (movable property) of Mr Razwinane is unlikely to satisfy even the arrears owed to VBS.”
“It is unclear whether he even owns any such property. Attaching and selling the household furniture and effects, which Mr Razwinane may have, will only delay the inevitable (as the only reasonable manner in which the outstanding amounts can be satisfied is through the sale of the property in question).”
He said the sale of the property was the only viable option for settling the debt as Razwinane appears to lack other significant assets. Therefore, said Havenga, executing the property sale is essential to satisfy the outstanding amount promptly.
Razwinane’s Gundo Wealth Solutions, which acted as a fixer for VBS by soliciting investments, including from municipalities, is at the centre of the row surrounding justice minister Thembi Simelane.
His entity advanced a loan of R575, 600 to Simelane while she was a mayor of the Polokwane Municipality.
Simelane told the portfolio committee on justice and constitutional development on Friday she had nothing to conceal, and her position as the minister in charge of the NPA posed no conflict of interest.
