News / Africa
Mzi Khumalo's mansion up for auction
06 Oct 2013 at 11:08hrs | Views
TOP South African mining magnate and owner of Metallon Gold in Zimbawe, which is the biggest gold producer in Zimbabwe and is valued at about US$323m (more than R3.2bn is set to lose his palatial Zimbali mansion after he failed to settle over R17 million, including interest, owed to RMB Private Bank.
According to IOL, Khumalo, a former uMkhonto we Sizwe operative who spent a decade on Robben Island, will lose his five-bedroom house and an adjacent property, an unfinished hotel he tried to build with his former business partners, property development company Laurusco Developments.
Khumalo sold his shareholding in Laurusco Developments in 2008 to focus on his mining interests.
The 58-year-old secured the loans through his family trust, the Mzi Khumalo Family Trust, now known as the Mawela Family Trust.
Among its trustees were his wife Makhosazana, his former business partner and asset manager Charles Graham and Constitutional Court Justice Raymond Zondo, according to papers filed at the Johannesburg High Court. Zondo resigned as a trustee more than three years ago.
Khumalo accepted liability including interest, damages, taxes, costs and whatever charges were owed by the trustees. The trustees had limited liability of R6.5m.
The trustees were supposed to make R10.5m in capital payments and pay R2.4m as collateral for the three bonds.
Khumalo took out the bonds between 1998 and 2004. The Mzi Khumalo Family Trust bought the land on which the adjacent properties stand for R475 000 and R510 000 in September 1996 and November 2002 respectively.
The properties are on Camwood Street in Zimbali.
Khumalo owns Metallon Gold, which is the biggest gold producer in Zimbabwe.
Last year, mining consultancy SRK Consulting estimated the value of Metallon Gold at $323m (more than R3.2 billion).
In 1996, Khumalo became the first black person in the country to take control of a mining house when he took over Johannesburg Consolidated Investments, the South Africa's fourth largest gold producer at the time.
On Friday, one of Khumalo's right-hand men, not authorised to speak on record to the media, said the businessman had secured funding to avert the sale but RMB Private Bank's lawyers were not available to confirm the claim.
According to IOL, Khumalo, a former uMkhonto we Sizwe operative who spent a decade on Robben Island, will lose his five-bedroom house and an adjacent property, an unfinished hotel he tried to build with his former business partners, property development company Laurusco Developments.
Khumalo sold his shareholding in Laurusco Developments in 2008 to focus on his mining interests.
The 58-year-old secured the loans through his family trust, the Mzi Khumalo Family Trust, now known as the Mawela Family Trust.
Among its trustees were his wife Makhosazana, his former business partner and asset manager Charles Graham and Constitutional Court Justice Raymond Zondo, according to papers filed at the Johannesburg High Court. Zondo resigned as a trustee more than three years ago.
Khumalo accepted liability including interest, damages, taxes, costs and whatever charges were owed by the trustees. The trustees had limited liability of R6.5m.
Khumalo took out the bonds between 1998 and 2004. The Mzi Khumalo Family Trust bought the land on which the adjacent properties stand for R475 000 and R510 000 in September 1996 and November 2002 respectively.
The properties are on Camwood Street in Zimbali.
Khumalo owns Metallon Gold, which is the biggest gold producer in Zimbabwe.
Last year, mining consultancy SRK Consulting estimated the value of Metallon Gold at $323m (more than R3.2 billion).
In 1996, Khumalo became the first black person in the country to take control of a mining house when he took over Johannesburg Consolidated Investments, the South Africa's fourth largest gold producer at the time.
On Friday, one of Khumalo's right-hand men, not authorised to speak on record to the media, said the businessman had secured funding to avert the sale but RMB Private Bank's lawyers were not available to confirm the claim.
Source - iol
