Former Eskom chief executive Matshela Koko could lose his luxurious house worth R5m in the upper suburbs of Cedar Lakes in Johannesburg after he allegedly defaulted on his monthly instalments, reports City Press.

Creditors Firstrand Bank are in pursuit of a court order claiming that Koko has breached a loan agreement concluded in 2015, which was meant to cover the purchase of his mansion by failing to pay R42 000 monthly instalments.

The affidavit filed at the Gauteng High Court (Johannesburg) on 17 September stipulates only that Koko’s account was in arrears amounting to R213 000, with a total outstanding balance being R3m.

‘Having regard to the amount of arrears, as well as the period in which Koko has been in arrears, the bank submits that there is no other reasonable recourse available other than a monetary judgment and declaring the property specially executable,’ read their papers.

The bank further outlines that Koko has failed to respond to numerous letters of demand for payment, which prompted the legal action.

They also claim that the house was evaluated and declared to be a developed property, and it is unknown whether the premises is Koko’s primary residence.

The bank also highlights the matter has not been put before the National Consumer Tribunal and there is also no application under the National Credit Act. 

City Press reported in 2022 that the same bank attempted to put Koko under debt review for failing to stick to his financial obligations, but he later entered into a settlement agreement with the bank.

When asked about the court action, Koko said he was aware of the matter.

‘This is the consequence of my persecution by the state, including terminating all my bank accounts. But you know what? I will have the last laugh.’

Full City Press report