Liquidators of the Pamodzi Group of Companies have approached the KZN High Court (Durban) seeking a sequestration order against President Jacob Zuma’s controversial nephew, Khulubuse, over a R1.5bn debt, according to a Sunday Tribune report. The move comes after Zuma allegedly failed to honour the payment agreement and hid some assets when the agreement was signed last year.

In 2009, Zuma’s Aurora company made an offer to buy two mines from the embattled Pamodzi Group for R215m and R390m, but the payments were never made and the sale agreement was eventually cancelled in May 2011. ‘Pursuant to Aurora having taken control of the mentioned mines, Aurora, in essence caused a massive stripping of the mines and their assets as well as the appropriation of gold produce,’ said liquidator Johan Engelbrecht in his affidavit.

Because of financial challenges Aurora was also liquidated in October 2011 and in 2015 the SCA ruled that Zuma was personally liable for its debts, which included the R1.5bn for damages suffered by the Pamodzi Group. Engelbrecht said last year Zuma undertook to pay R23m, with an initial payment of R5m then monthly instalments of R500 000 but started defaulting in June.

Zuma is known for his expensive and flashy lifestyle but Engelbrecht said some things did not add up and that an investigation into his sources of income needed to be done as he obviously failed to declare everything in his affidavit.

Full Sunday Tribune report (subscription needed)