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Toni tries to dodge VBS debt By Anton van Zyl The former acting king of the Vhavenda, Toni Mphephu Ramabulana, is seemingly not going to be let off the hook, and his VBS Mutual Bank debt is not about to disappear. Judging by papers filed in the High Court by the bank’s liquidator, the debt amounting to more than R15,6 million that Mphephu and his Dzata Trust had incurred, will have to be repaid. Mphephu was one of the high-profile people mentioned in the Terry Motau report who benefitted from loans from the mutual bank. The full-scale looting of the bank eventually caused its demise and led to, among others, municipalities’ losing hundreds of millions of rands needed for development in local communities. The bank’s liquidator, Anoosh Rooplal of SNG Grant Thornton, went after Mphephu for his vehicle finance debt to the tune of R5 million as well as the R10,6 million loan to Dzata Trust, apparently to finance the purchase of a property in Dainfern, Johannesburg. The vehicle finance from VBS was to buy three vehicles, which included a Land Rover and a BMW 750.
In June 2020, Ramabulana released a statement saying that he had no problem settling any legitimate VBS Mutual Bank debt he might have, but he needed to be properly informed of the details of the money he was supposed to owe. Judging from the court documents filed, he has since changed his tune and now disputes the processes followed when the credit was extended. He has also asked to be placed under debt review.
“I should never have received the credit and I can’t pay it back” In Toni Mphephu’s affidavit filed in the High Court, he argues that he is not responsible for the debt. He firstly argues that VBS Mutual Bank was not a registered credit provider and, as such, should not have lent him the money. Mphephu also argues that the loans made to him amounted to reckless lending as the bank never properly established whether he would be able to repay the debt. As a further defence, Mphephu argues that the debt has become prescribed, because of the time delay in
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trying to recover the money. Finally, as a last resort, Mphephu asks that he be placed under debt review. In his latest replying affidavit, Rooplal responds in great detail to the arguments offered by Mphephu. He emphasises, however, that VBS’s records were in a complete state of disarray when he took over. “Many documents were hidden and destroyed in an attempt to conceal the fraud perpetrated on VBS by some of its former directors and managers,” he says. Rooplal provides proof to the court that VBS Mutual Bank had been a registered credit provider since March 2007. Throughout the whole period, VBS had maintained its registration with the National Credit Regulator. Rooplal’s latest replying affidavit focuses on the vehicle debt of around R5,6 million, but the arguments correspond with those in the bank’s R10,6 million claim against Dzata Trust, where Mphephu was the main benefactor. The Dzata Trust debt was incurred to help finance Mphephu’s house at the Dainfern Golf Estate in Fourways. VBS has brought a sequestration order against the trust. (Continued on page 2)
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Local comedian SABC Livhu (Livhuwani Madadzhe) is leading a campaign to encourage locals to live in peace with foreign nationals. On Saturday he, along with friends Frank Mboswobeni Mulugana, who is known as 30 Cent, and Abrigen Thomani Mahodze, took to the streets of Thohoyandou, making stopovers at public places such as taxi ranks and interacting with commuters and shoppers to make an important statement. Dressed in Nigerian traditional garb, they called on communities to welcome the foreign nationals living among them. (See story on page 2)
• Fish farm capacity – 6000 unit per cycle (5x Rearing DAMS – 5x cycle) • Borehole (Equipped & Functional) / 25kVA Eskom electricity • Infrastructure – Main residence / Workshop / Processing plant / Workers quarters • 2.6Ha Arable land – Production ready