ANC bigwig loses property over debt to bank
ANC Mpumalanga bigwig Charles Makola is set to lose his R1.6m Witbank property after he failed to pay R1.3m he owed to Absa, according to a Cape Argus report.
The bank made available a facility of R1.3m to Makola, who was Deputy President David Mabuza’s second-in-charge when he was the ANC’s provincial chairperson in Mpumalanga. Makola had agreed to pay a minimum of R10 500 in monthly instalments.
He is among the party leaders in the province who have been touted to replace Mabuza as provincial chairperson – a position that has been vacant since December 2017, when Mabuza was elected ANC deputy president. But court papers show that Makola failed to repay the instalments and, by November 2017, owed over R1.32m.
Absa demanded Makola pay the R1.32m with interest at an interest rate of 9.25% from November 2018. The former Nkangala district municipal manager had put his Witbank Extension 10 residence up as security for the private banking account he utilised for six years.
Mpumalanga High Court Acting Judge Hein Brauckmann found that although the purpose for which Makola used the account was unknown, such facilities are normally used for business purposes.
In his judgment, Brauckmann was unconvinced by Makola’s explanation for his inability to service the facility after using it for six years, and owing Absa more than when the agreement was entered into.
Makola told the court that Absa had closed the account and, as a result, he was prejudiced.
The judge rejected Makola’s claims his right to adequate housing would be compromised and that his family would be left destitute and living on the streets.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.