The liquidator of the defunct VBS Mutual Bank has obtained the provisional sequestration of the estate of the Dzata Trust, controlled by former Vhavenda King Toni Mphephu Ramabulana and Portia Hulisani Mphephu.
Anooshkumar Rooplal told the South Gauteng High Court that the Dzata Trust benefited from the almost R2bn fraudulent scheme that put the final nail in the VBS coffin.
Rooplal pointed to the overdraft facility made available by the defunct bank to Dzata Trust. He said by the time the scam was uncovered the trust had used R10.6m of the credit facility.
In its defence, the trust maintained it never benefited from the fraudulent scheme as alleged.
“The allegation that there was a factitious credit in the alleged account is something that I cannot deny nor confirm on the basis that I have no knowledge of the bank account. The bank account was not operated by Dzata Trust through the second respondent [Mphephu] and myself [Ramabulana],” the affidavit reads.
“The process of effecting factitious credit into the alleged account obviously has nothing to do with the second respondent and myself in our own capacities as the trustees. It is clear that if indeed there was a fraudulent scheme it was perpetuated by other people without our knowledge and for their selfish benefit(s).”
The argument by the trust failed to convince judge Edwin Molahlehi who ruled on Wednesday that Roopal had made out a case for the provisional sequestration of the trust.
“There is clear evidence linking the Dzata Trust to the VBS account, the mortgage bond over the Dainfern property, the payment of the Range Rover and the names of the respondents and Mr Makhavhu on the bank statements. Thus, the conclusion to draw is that either the bank account belonged to Dzata Trust or even if the bank account did not belong to Dzata Trust it benefited from the payment made from the bank account,” Molahlehi ruled.
“There is also evidence suggesting the existence of other assets belonging to Dzata Trust. On the face of it, there are other transactions in the bank statements that may require some investigation. It will accordingly be in the interest of the body of creditors that Dzata Trust be placed under provisional liquidation.”
Molahhlehi ordered that interested parties must before the end of August show cause why the Dzata Trust should not be finally sequestrated.
This is the second time in as many weeks that Rooplal has dealt a blow to the former king in the courts.
The South Gauteng High Court last week ruled that he has to pay VBS Mutual Bank nearly R6m after he lost a bid to appeal against a November court ruling.
Ramabulana wanted to contest the November 2022 decision, in which he was ordered to pay VBS Mutual Bank money arising from three finance agreements for luxury cars concluded between 2015 and 2018.
The agreements relate to a Range Rover 5.0 V8 for which Ramabulana owes VBS Mutual Bank R1.4m, a BMW 760i sedan for which he owes R2m and a Mercedes-Benz V250d with a price tag of R2m.
Ramabulana was removed as king by a judgment of the Supreme Court of Appeal that set aside former president Jacob Zuma’s decision to install him as the acting king of Vhavenda. This decision was later confirmed by the Constitutional Court.
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