The estate of diamond dealer Louis Liebenberg has been placed under provisional sequestration by the Gauteng High Court (Pretoria), which found prima facie evidence that he owed his old company R150m.

Most of what he owes allegedly stems from casino gambling debts, observes News24.

The order is the latest legal strike against the 60-year-old, who is also facing criminal charges and whose company, Tariomix, has already been liquidated. Liebenberg gained prominence for cosying up to former President Jacob Zuma from 2022 onwards, paying millions of rands towards his legal fees.

In a ruling handed down on Friday, Acting Judge Khashane Manamela said it was likely that Liebenberg only had assets of around R4.9m – far less than the R150m he is said to owe Tariomix.

The application to place the estate in sequestration was brought by the liquidators of Tariomix, a company which claimed to fund the buying and selling of diamonds. They argued that Liebenberg's estate was insolvent and that he owed tens of millions of rands in gambling debts. 

A report by Adams and Adams Forensics, found that Liebenberg was indebted to the insolvent estate of Tariomix in the amount of R144m.

Liebenberg, who denied the debts, tried to get the forensic report struck out as ‘inadmissible hearsay’, but the court allowed it to be presented as evidence.

The self-described ‘carat king’ also tried to argue that what the forensic investigators identified as gambling activities were, in fact, legitimate business dealings. But the judge found no evidence for this, notes News24.

‘I agree with the applicants that the respondent failed to furnish proof of his own assertions that the gambling activities were legitimate for purposes of the business of Tariomix. There is also no proof of the transactions and entries in Tariomix’s financial statements,’ he said.

Manamela added that, when the liquidators of Tariomix took over the reins at the company, they found no proof of diamonds or evidence that any diamonds had ever been bought.

‘It is impossible to imagine what became of the funds of Tariomix other than to agree with the applicants that the respondent indeed ruthlessly gambled away Tariomix's funds sourced from third-party investors,’ said Manamela.

In addition to the R144m gambling debt, Tariomix's liquidators said Liebenberg owed the company another R5m for medical aid, personal expenses, and transfers, bringing his total indebtedness to about R150m.

Liebenberg will have a second chance to argue that he is not insolvent when the court hears whether or not his estate should be placed into final sequestration.

No date has been set for that hearing.

Full News24 report