Olympic athletes wait for R1.1m after failed investment

Olympic medallist Akani Simbine, 400m world record holder Wayde van Niekerk and their manager, Peet van Zyl are waiting for nearly R1.1 million they are owed by a Johannesburg businesswoman and her company.

The two Olympians and Van Zyl are demanding over R1.22m from Siziwe Khumalo and her company, Nobantu Steel, following their investment in the firm.

Khumalo signed an acknowledgment of debt in May 2022, when she undertook to pay more than R1.22m over several months.

The acknowledgment of debt states that she will pay R63  000 by the end on May 2022, three equal instalments of R15  000, five equal and consecutive instalments of R20  000, a one-off final payment of R1m, as well as more than R17  000 in legal costs incurred by the three.

However, Nobantu Steel only paid R163  500 of its debt between May and December 2022. At the South Gauteng High Court, Khumalo alleged that there was a dispute in the amount owed. However, Judge Thifhelimbilu Mudau last month ordered Nobantu Steel and Khumalo to, within seven days, pay almost R1.1m at 25.9% interest per annum from the date of failure to make the final payment.

“Failing which, (Khumalo) is compelled to transfer the shareholding held by her in (Nobantu Steel) to the applicants, to perfect the pledge and cession of shares granted ... to the applicants,” read the August 21 judgment.

Nobantu Steel has also been compelled to deliver its debt book to Simbine, Van Niekerk and Van Zyl to perfect the pledge and cession of the debt book the company granted the two athletes and their manager.

In terms of the acknowledgement of debt, the three were entitled to exercise their security, including Khumalo’s shareholding in the company or a portion deemed equivalent to the value they were owed. Judge Mudau found that Khumalo bound herself as surety and co-principal debtor jointly and severally with Nobantu Steel.

Simbine, Van Zyl and Van Niekerk’s legal representatives sent Nobantu Steel and Khumalo a notice of breach of the acknowledgement of debt in October last year, giving them 14 days to remedy the breach.

However, after the lapsing of 14 days Nobantu Steel and Khumalo failed to make payment. Judge Mudau also found that Nobantu Steel and Khumalo failed to meet the threshold when they disputed the amount claimed.

“It is trite that a real, genuine and bona fide dispute can only exist where the court is satisfied that the party who purports to raise the dispute has seriously and unambiguously addressed the facts said to be disputed in his or her affidavit,” the judge said.

He said Nobantu Steel and Khumalo’s denials raised fictitious disputes of fact and were clearly untenable.