Entrepreneur and pastor Lonwabo Mahlati is R43m down on his fortune after the Eastern Cape High Court (East London) granted summary judgment against him. Judge John Smith said there seemed little doubt that Mahlati and his wife had misappropriated the money from the business’ liquidation account.

A Daily Dispatch report says the family business New Creation Construction was placed under provisional liquidation in April.

The joint liquidators claim the R43m – which was due to the close corporation in liquidation – was instead diverted by Mahlati to another bank account created by him with the business’ name. Two different amounts – R39m and R4m – ended up in his Absa bank account with the name New Creation Construction, instead of the actual close corporation account.

Smith said it had been alleged by the joint liquidators that Mahlati and his wife received the money by diverting payments made to the close corporation in liquidation into the Absa account controlled by Mahlati. He granted the joint liquidators summary judgment against the couple in the amount of R43m with interest.

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